Government calls ‘last orders’ on red tape choking pubs, clubs, and restaurants in major boost to the British night out

Pubs, clubs and restaurants are set to be released from burdensome red tape which has stifled business as government ‘backs the British night out’.

Action includes moves to improve the application of licensing laws and strengthening businesses’ competitiveness, giving diners, pub and party-goers more time and more choice to enjoy what British hospitality has to offer.

It includes a landmark pilot that could see more alfresco dining and later opening hours in London, as the Mayor of London is granted new “call in” powers to review blocked licensing applications in nightlife hotspots.

If successful, this approach could be rolled out to other mayors across England, working closely with their own local police forces.

The package of measures will seize the opportunities on offer in the UK hospitality sector, which employs over three million people and is worth around £62 billion to the British economy. It comes as the government continues to go further and faster to drive economic growth and get more money in working people’s pockets, a key focus of the Plan for Change.

Businesses have long indicated that the current licensing system lacks proportionality, consistency, and transparency - creating barriers to growth and investment for business.

Blockers to growth include businesses being banned from extending licensing hours for late night drinking and anti-competitive blockages from other businesses.

Chancellor of the Exchequer, Rachel Reeves, said:

British businesses are the lifeblood of our communities. We want them to Our Plan for Change will make sure they have the conditions to grow – not be tied down by unnecessarily burdensome red tape.

We’ve heard industry concerns and we’re partnering with businesses to understand what changes need to be made, because a thriving nighttime economy is good for local economies, good for growth, and good for getting more money in people’s pockets.

Deputy Prime Minister, Angela Rayner, said:

We promised to clear the way to economic growth in our Plan for Change and that’s exactly what we’re doing. We’re already reforming planning to back the builders, not the blockers. Now we want to do the same for the nighttime economy which has been neglected for so long. 

Our pubs, restaurants, and live music venues are the beating heart of our cultural life, so it is vital they are given every chance to survive and thrive. 

That’s why it’s time to give the Mayor of London new powers to back the capital’s pubs and clubs, as part of our plan to give mayors the tools they need to drive growth. Too often, we have seen the complaints of a vocal minority of objectors promoted over the need for our country to grow - we are determined to change this.

Nick Mackenzie, CEO of Greene King and Chair of the British Beer and Pub Association, Kate Nicholls, National Chair of the Institute of Licensing CEO of UKHospitality, Michael Kill, CEO of Night Time Industries Association, and the police are all working with the government to rapidly explore and evaluate better licensing options for businesses right across the UK.

The group aims to transform the licensing system to one that better supports business growth and confidence, creating a better hospitality experience for Britons and visitors, whilst ensuring public safety and community interests remain adequately protected.

It will report back in six weeks with solutions informing the government’s work to kickstart economic growth as part of the Plan for Change.

Business and Trade Secretary, Jonathan Reynolds, said:

Businesses in our retail, hospitality and leisure sectors are foundational to our economy and our high streets. They are big employers in every community across the UK, offering accessible jobs and opportunities and providing spaces where communities can come together - they are the glue that binds us together as a society.

These measures will ensure that we support these vital sectors by delivering a business environment as part of our Plan for Change that allows them to operate profitably so that they can provide the jobs, investment and growth communities across the country need.

In addition to these steps, a new £1.5 million Hospitality Support Scheme has been launched to help get existing projects over the line and fill job vacancies in the sector.

This includes supporting the delivery of hospitality training facilities in prisons, which will help to address skills gaps and provide prison leavers with a fresh start and opportunities on release, reducing unemployment and the £18 billion cost of reoffending.

These new steps are part of the government’s wider work to kickstart economic growth, boost productivity and put more money in working people’s pockets as part of the Plan for Change.

Nick Mackenzie, CEO of Greene King, Chair of the British Beer and Pub Association and Co-Chair of the Licensing Taskforce, said:

Licensing regulations provide a clear example of how well-intentioned legislation can inhibit economic growth, with excessive restrictions often limiting premises’ ability to respond to changing circumstances and customer demand.

I am looking forward to working with the hospitality minister as we speak to stakeholders from within the industry and beyond to understand current frustrations and limitations.

I hope that we can address existing concerns and create a licensing system that reduces unnecessary red tape, accelerates the licensing process and unlocks opportunities for premises to drive economic growth across the UK.

The Mayor of London, Sadiq Khan, said:

I am delighted that the government is looking to grant London greater powers over licensing.

This significant decision would allow us to do more to support the capital’s pubs, clubs, music venues and other parts of the visit and tourist scene. It would boost tourism, stimulate growth and deliver new jobs both in London and across the country.

This is more evidence that we now have a government that wants to work with the capital and recognises the role that we can play in delivering economic prosperity and support Londoners as we build a better London for everyone.

Kate Nicholls, Chief Executive of UKHospitality and National Chair of the Institute of Licensing, said:

Cutting red tape and improving hospitality’s competitiveness is much-needed to unlock our sector’s potential to drive socially productive growth and create jobs. A new and improved licensing system that is fit for the 21st century will be a huge boost to the nation’s pubs, bars, restaurants and hotels.

I’m delighted that this expert group will be leading the review and coming forward with solutions that can unlock the high street’s potential, in addition to informing the government’s Industrial Strategy.

Emma McClarkin, Chief Executive of the British Beer Association said:

A review of the 2003 Licensing Act is long overdue.  We are currently working with MPs to pass an amendment to permitted licensing hours at times of major national events when Parliament is not sitting.  But this is just one example where the current law restricts the ability of pubs to respond to consumer demand and sell beer and other drinks in a responsible manner. 

There will be many other simple changes that can be made to the Act that will ease the ability to do business and drive more sales, invest and grow.  I look forward to the quick implementation of the recommendations that the taskforce brings forward and urge the government to repeat this exercise across a number of other policy areas where urgent reforms are needed including business rates reform, packaging reform and much needed cuts to beer duty.

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More Information

• The government will work with the Greater London Authority to review strategic licensing powers and explore a pilot scheme, providing the Mayor of London with new powers over strategic licensing. This could include a new “call in” power over licensing applications in areas of strategic importance for the nighttime economy.  

• The Mayor of London recently launched a new, independent London Nightlife Taskforce to examine and address the issues facing London’s nightlife industry and provide recommendations on how to ensure the night-time economy can thrive.

• This review of strategic licensing powers will look at options for providing the mayor with new powers to support the nightlife industry.

• The government and the GLA will work closely with local stakeholders, including the police, to design the pilot scheme.