More of a marathon than a sprint?

8th August 2025

Felicity Tulloch, Partner

Initial findings of the joint industry and HM government taskforce report

The Licensing Taskforce was set up on 9 April 2025 in order to “…explore and evaluate options to create a licensing system that better supports business growth while ensuring public order and community interests remain protected“, including “…considering new mechanisms and the feasibility of developing updated policy and guidance.” The Taskforce was set up because it is felt that the Licensing Act 2003 has not succeeded in striking the necessary balance between the various competing interests that surround operating licensed premises and “…we are back trying to redress the same problems the original act was trying to fix.”  Businesses have experienced a lack of proportionality, consistency and transparency, which have created barriers to growth and investment for business. On top of this, Covid has undeniably left its mark on the hospitality and leisure industry that has also been battered by the effects of more recent economic pressures such as increases to the National Minimum Wage and employer National Insurance contributions.

The Taskforce was co-chaired by Nick Mackenzie, CEO of Greene King, and Gareth Thomas MP, Minister for Services, Small Business and Exports. The Taskforce brought together representatives from government, industry, police and local government – including mayoral areas – to make recommendations that aim to deliver effective change in the licensing system. The Taskforce set out to consider what are the current issues relating to the current licensing regime; how can the regime be improved for operators and via government guidance issued to local authorities; and how to ensure such changes do not undermine the licensing objectives.

On 31 July 2025, the Licensing Taskforce issued an initial Report, for consideration by HM Government. The Report contains various recommendations resulting from the main Taskforce meetings and three working groups (looking at community and neighbourhood licensing; music, cultural and entertainment venue; and process and procedure). The full Report can be accessed here.

The Report is lengthy but, fear not, we have read it, so you don’t have to. This article sets out the key practical recommendations of most interest to operators. We also make some suggestions of our own.

Top Ten Recommendations 

Below is a summary of the Report’s top ten recommendations, followed by a brief summary of the key supplementary proposals.

1.The introduction of a National Licensing Policy Framework (“NLPF”)

This aims to ensure statutory consistency across licensing authorities whilst allowing local decision making and determination of applications.  Of most practical import to operators, consideration is being given to (amongst other things):

  • Better links between planning and licensing regimes, and more broadly the linking of licensing policies to wider economic and culture policies (supported by greater cultural representation at the various stages of the licensing process).
  • Introduction of night-time economy strategies in licensing policies
  • Improved administration of the licensing process, including adherence to statutory and guidance administrative deadlines (for application outcomes and hearings) and steps to improve the DPS variation process
  • Powers to licensing officers to provide recommendations to the licensing committee
  • Training for operators, licensing officers and committees; and the introducing of foundations apprenticeships in the licensing trade
  • Clarification regarding the deregulation of live and recorded music
  • Local policies and licences to reflect national and more seasonal hours (for example, Easter and local festivals)
  • Improved support for premises where licences have lapsed and 28 days have passed; easier ways to notify of name changes to premises
  • Improved automatic operating hours for hotels, and removal of ‘restaurant conditions’ for the sale of alcohol.

2. A one-time licensing condition ‘amnesty’ to modernise and streamline licences: the aim would be to remove various types of outdated conditions from the premises licence with no need to apply for a variation. For example, grandfathered conditions and conditions outdated by changes in business style.

3. Hearings and appeals: greater scrutiny of evidence is required, with specialist oversight at appeals, including:

  • Evidential thresholds and requirements to avoid unsubstantiated objections to applications.
  • A new centralised specialist independent appeals system (such as District Judges with licensing knowledge) or Tier 1 tribunal (as per gambling legislation).

4. Remove requirement to advertise in hard copy newspaper: the cost of newspaper adverts regularly runs into many hundreds of pounds which is a significant financial burden on any applicant.  Fewer and fewer people are reading hard copy papers, and engaged local residents find out about licensing matters in their area in other ways now.

5. Improve potential for premises to use outside spaces: by addressing reducing the barriers that existing between licensing, highways and pavement licensing, including: redefining ‘on-sales’ to include pavement licensed areas and automatically granting off sales (refusals to be evidence based), plus resolving conditions inconsistent with either; pavement licences to be granted a minimum of x2 years (or, preferably, in perpetuity); enhanced ability for premises to trade other outside areas on interim basis; remove restrictive conditions pertaining to live music outside;

6. Increase annual entitlement of Temporary Event Notices (TENs): to 25 TENS covering 30 days. If not this, then reverting to the Covid minimum of 21 TENs covering 26 days per annum. In line with strengthening evidential requirements, the police and EHO have to produce substantial specific evidence to object to the TEN.

7.‘Sunset clause’ on blanket hours policies: to ensure restrictive policies (including core hour polices) are time-limited (thereafter lapsing) and subject to review to ensure they remain evidence-based, proportionate and responsive to local needs.

8. Arbitration, evidence and data protocol for licensing decisions: clearer evidential standards and structured mechanisms for objections and reviews (including procedural fairness) are needed to help reduce unnecessary burdens on businesses and local authorities. The following will resonate strongly with all operators:

  • Licensing conditions and decisions to be necessary and proportionate
  • The re-introduction of the proximity test for objectors / residents
  • Authorities to assess frivolous or vexatious objections (and not give them the ‘benefit of the doubt’)
  • Objections to be backed by clear, non-discriminatory and transparent evidence
  • Evidential thresholds to be met before enforcement action is taken
  • Better and clearer format for lodging objections eliciting evidential support at the point of lodging. It was noted that steps are specifically required to ensure authorities (notably the police) cease lodging evidence at the last minute to support vague objections
  • CCTV requirements to be evidentially justified under the crime and disorder licensing objective
  • Using ADR methods (such as arbitration or mediation) to resolve disputes out of court (such as appeals)

9. Festivals and events: a review of the duration and fees (including multipliers)  associated with festival licences for recurring festivals. This would include reviewing the need for multipliers on fees and consideration of a standardised route to a perpetual licence (with a five year minimum provision).

10. Agent of Change principle to be factor in licensing decisions: this needs to be formalised within the licensing framework via stronger guidance or as a mandatory requirement to ensure agent of change principle is considered when setting conditions on the licence.

Stronger links with the planning process (via legislation or the national framework) are also proposed. For example: music venues to be considered a planning constraint; music venues to be automatically notified of relevant planning applications; ‘hubs’ that require an automatic agent of change impact assessment.

11. Supplementary recommendations

In addition to the top ten areas of concern, the Report also proposed a further set of supplementary recommendations, including:

i) Review of licensing fees and uniform digital licensing process

ii) Extended blanket hours for local events (as opposed to just such relaxations being granted at a national level for national events)

iii) Greater evidential basis for introducing and calculating the late-night levy

iv) Removal of EMROs

v) Review of current mandatory conditions, including incorporation of the move to digital ID

vi) Small night cafes to be exempt from regulation

It is an undeniably extensive list, as you would expect from those who have been involved in the consultation process.

But we think there are some notable omissions

Ancillary Seller’s Notices

Licensing also affects some of the less obvious professions who haven’t received much attention in the report, quite possibly because they were not involved in the consultations. Hairdressers, barbers and nail bars often like to offer a glass of fizz to their clients. Florists would like to include a bottle of something sparkly alongside a bouquet. Air B&B’s would like to be able to sell alcohol to their guests from a well-stocked fridge. This is low-level light-touch territory that – if introduced in the right way – would make a big difference to these businesses with minimal public administration.

Minor variations

Whilst a welcome addition to the licensing process, this could go further. Small chances to the licence, such as the removal of some conditions, could be notified in the first instance, with a ‘review’ after a bedding-in period to see if there had been any ill effects. If not, then the provision becomes permanent, otherwise a full variation is required to allow wider scrutiny.

Lapsed licences

The Report references the need for further support around the 28-day reinstatement period. Our experience is that this time period is insufficient for operators, who might not be aware of the finer details of the Licensing Act 2003. We would suggest:

1. A 56-day reinstatement period comprising of the current 28 day provision, with a further 28 days thereafter during which a new premises licence application has to be made to reinstate the pre-existing licence with a corollary TEN-type notice that can also be lodged at the same time (if required) that would have automatic effect and continue until the application is determined. Objection provisions to reflect those for transfer applications.

2. After the 56 day reinstatement period, and for the period of 12 months, in the event the licensing authority notifies a trading operator the premises licence has lapsed, then that operator has two full working days in which to apply for a new premises licence (with a corollary TEN-type notice in place) effectively reinstating the old one but at enhanced application fees contingent up on the amount of time that has passed. Objection provisions to reflect those for transfer applications. The operator may prefer to apply for a new premises licence as per the usual process, however.

Mayor of London Powers

The Report also references the statutory basis for London’s new licensing scheme (to be piloted) that would allow the Mayor, Sir Sadiq Khan, to set a strategic policy for licensing in London and to ‘call in’ ‘blocked’ licensing applications in an attempt to encourage more al fresco dining and later hours. If successful, the powers could be rolled out to other mayoral areas.

The proposal recognises the plethora of difficulties London operators face, particularly where strict cumulative impact policies are implemented. Much remains unclear about how the scheme will work, particularly as London contains as diverse a set of local authorities and licensing policies, as ‘The North West’. Furthermore, it is unclear when the scheme might be introduced elsewhere, with ‘Two Tier Licensing’ operating in the meantime. For now, however, if you are in any doubt as to why you should consider operating in Manchester, have a read through this recent article.

Conclusion

As a licensing team, it has been very hard to see the industry struggle and watch as hard working and dedicated people take the very difficult decision to close their businesses under the weight of regulatory and financial pressure.

The Report is undoubtedly an important step towards a long-overdue overhaul of the licensing regime. It reflects many of the issues our clients have raised with us over the year. The next step is a call to evidence to support the implementation of the recommendations and it is hoped that there will remain an opportunity by which new recommendations can be introduced.

However, the role the licensing industry plays in cultural place-making and social cohesion needs more than lip-service. It requires effective integrated and statutory policy support to be introduced as soon as possible. It is recognised that the National Licensing Framework and other elements requiring statutory change will take the longest to introduce. Therefore, where possible, changes should be introduced through the s182 guidance and secondary legislation where appropriate.

For further information on this or any other licensing issues, please contact Felicity Tulloch, Partner and Head of Licensing and Leisure, at felicity.tulloch@kuits.com, or Rebecca Lowe, Partner, at rebecca.lowe@kuits.com. Alternatively, please call 0161 838 7888.

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