Propel Legal Briefing: Shaken, not stirred: the latest licensing updates By Tim Shield

First appearing for Propel Hospitality in their Legal Briefing on 13th November 2024.

Shaken, not stirred: the latest licensing updates By Tim Shield

At the Propel Multi-Club Conference on 30 October, a day that was also notable for chancellor Rachel Reeves’ new Budget, I had the pleasure of diving into the evolving landscape of licensing in the hospitality sector. While much has already been said about the new Budget’s potential overall impact, this article will focus on the latest developments in licensing and what lies ahead for our industry.

My role at the conference was to give a licensing update, covering recent developments in licensing over the past year as well as what we can expect in the future. I cannot lie, this time around, I found preparing for my licensing update especially challenging. 2023 brought an array of proposed updates, particularly around public health and safety. There were endless topics I could have talked about, and fitting everything in proved a challenge.

One prominent rumour centred on extending the smoking ban to outside schools, hospitals and even specifically referenced beer gardens and licensed premises. For some time, it appeared this extension was inevitable, prompting questions about managing patrons. What happens if a customer steps just outside the immediate area of a venue to smoke, where smoking likely isn’t banned? How can the venue be expected to manage issues like noise or nuisance if the person is technically beyond its boundaries? This raised a tricky point. How much control, if any, should a venue have over patrons once they’re outside its immediate area? It was a hot topic in the media, causing all kinds of debates and discussions online. It felt like a potentially huge issue for the sector and would impact licensing as we know it. Then, just as I’d finished all the preparation for the presentation, the government released a statement clarifying it did not plan to extend the ban to pub gardens or spaces just outside pub entrances.

As much as this announcement took a lot off our plate, this uncertainty highlighted a key challenge we face: balancing hospitality operators’ needs with a responsive approach to public health policy. Since 2007, the indoor smoking ban has forced operators to adapt, creating outdoor spaces for customers who smoke. The draft tobacco control bill still aims to mitigate the health impacts of smoking and vaping but, for now, stops short of restricting smoking in outdoor hospitality areas. Nonetheless, future iterations of this legislation may revisit these restrictions, so we’ll need to remain vigilant.

Another significant piece of legislation moving through parliament is the Terrorism (Protection of Premises) Bill. Originally proposed by the previous government, it has been reintroduced with amendments, including a revised two-tier system for regulated premises. The Security Industry Authority is reportedly set to oversee this legislation. Currently, it is expected to affect premises with capacities over 200 people (up from an initial threshold of 100) and impose enhanced requirements on larger venues. The bill is currently at the report stage in the Commons, where MPs will consider additional amendments following the evidence gathered during the committee stage of the process. While these measures rightfully aim to enhance public safety, they may introduce significant operational obligations, especially for larger venues. 

Moving on, the Home Office’s most recent licensing statistics have provided us with some good insight into how the sector is currently faring. The stats reveal a slight increase in licensed premises across England and Wales, from 222,500 in 2022 to 224,100 in 2024. Interestingly, Westminster City Council holds the largest number of premises licences, while North Yorkshire Council ranks second. However, I do wonder if this is perhaps a reflection of recent consolidation and increased licensing area sizes as local authorities have reorganised for efficiency.

While this may seem positive, sadly, the truth is that many licences remain active for premises for several years after the premises close. One key trend is the rise in licensing reviews, an enforcement mechanism that has become more frequent post-covid. At John Gaunt & Partners, we’ve seen this uptick reflected in our own caseload. In the year ending 31 March 2024, there were 412 licensing reviews across England and Wales. This is a whopping 19% increase from two years prior. This reinforces the importance of compliance as operators navigate an increasingly complex regulatory environment.

Cumulative impact policies (CIPs) continue to play a prominent role in licensing. CIPs are used by local authorities to limit the number or type of alcohol-licensed venues, like bars and clubs, in certain areas. They’re set up to help prevent cumulative problems, such as crime and anti-social behaviour, that can come from having too many licensed venues close together. The most recent statistics reveal a decline in CIPs, from 189 areas across 86 licensing authorities in 2022 to 182 areas across 75 authorities in 2024. CIP areas can significantly complicate the licensing process, and the recent decrease in these areas may be due to the level of administrative effort required to maintain these policies. Since these policies depend on regular reviews and up-to-date crime and disorder stats to stay in place, it’ll be interesting to see if the trend flips in the next few years and CIP areas start increasing again.

Another notable development is the growing adoption of late-night levies (LNLs) by councils. These are additional fees imposed on premises open late into the night to cover policing and public safety costs. Bolton City Council recently implemented a LNL, and others may follow suit. Operators should consider responding to LNL consultations in their areas, as active engagement can help local authorities understand the practical impact these levies have on businesses.

Looking ahead, we must hope that future government legislation, whether in the form of CIPs, LNLs, or other regulatory changes, recognises the hospitality sector’s critical role in the UK economy. With 224,100 licensed premises contributing to the vibrancy of our high streets, paying business rates, providing jobs, and offering essential social spaces, our industry is essential to local economies. By working closely with policymakers and industry representatives, we can help ensure that any regulatory changes strike the right balance, fostering both public safety and business success

Tim Shield is a partner at John Gaunt & Partners