Anyone who has been through a licensing application or hearing will know the drill. Much of the discussion tends to focus on risk: what problems might arise from a licensed premises and what steps will be taken to prevent them. That focus is hardly surprising. The licensing system in England and Wales, which was introduced through the Licensing Act 2003, is built around four core objectives: the prevention of crime and disorder, public safety, the prevention of public nuisance, and the protection of children from harm. These objectives sit at the centre of every licensing decision. They shape how applications are assessed and how operators approach the running of their premises.

 

The system is often described as a “light-touch” and “permissive” regime. In principle, that is true. Businesses are generally free to operate as they wish, provided they can demonstrate that the licensing objectives are being promoted. Despite this, in practice, we have noticed that the structure of the system inevitably directs attention towards potential problems. A venue selling alcohol late into the evening may be asked how it intends to minimise the risk of crime and disorder. A pub playing music near residential properties will need to explain how it will prevent noise becoming a nuisance.

 

What is discussed far less often is the positive contributions licensed premises deliver: real jobs, meaningful investment and a boost to local economies. 

 

Encouragingly, we are beginning to see a shift in what authorities value in the licensing realm. North of the border, the approach goes a step further. In addition to the familiar four objectives, Scotland has a fifth objective – the promotion of public health. This often means licensing boards receive data from public health officials about the local population. This can include alcohol-related hospital admissions, alcohol-related deaths and wider health trends. These figures are sometimes linked to the density of licensed premises, and historically, they have been used to justify refusals or limits on new licences.

 

A few years ago, we took note when one licensing board took a slightly different approach by deciding to interpret public health a little more widely than most. It recognised that a new premises could create employment, which in turn could positively affect the health and well-being of those taking up the jobs. Economic benefits were acknowledged as part of the public health objective. Emphasising the economic benefits of a new venue is nothing unusual. Operators and our solicitors routinely highlight the number of jobs a business will create and the wider contribution it can make to the local area. Whether appearing before a licensing committee in England and Wales or a licensing board in Scotland, we believe it is always helpful to promote the positives. Sadly, these factors have rarely been central to the legal decision and are not openly taken into account. 

 

We are now starting to see a shift of attitude in England and Wales due to the National Licensing Policy Framework (NLPF). The framework signals a subtle but meaningful change. Operators who have traditionally had to defend their applications by explaining risk mitigation are now encouraged to highlight the positive contributions licensed premises make to their communities.

 

Introduced late last year, the framework “sets out the government’s strategic vision for a modern, consistent and pro-growth premises licensing system for England and Wales and how this should be applied in practice” and highlights investment in new and existing venues, regeneration, consumer choice and better regulation. It is important to note that the framework is non-statutory guidance. It does not create new legal obligations, and where it conflicts with the Licensing Act 2003 or statutory guidance, the latter prevails. However, since then – and even better – the government amended the national Licensing Act Guidance with a new paragraph stating: When making licensing decisions, all licensing authorities should consider the need to promote growth and deliver economic benefits.”

 

Although this does not amount to the creation of a new economic benefit licensing objective (something that would absolutely delight licensing lawyers), it gives solicitors something to really sink our teeth into when it comes to promoting the positives of businesses as committees must now take these benefits into account as part of their decisions. The NLPF and amended guidance therefore mean that positives can no longer be ignored.

I recently saw this play out at a hearing for a city-centre pub seeking later weekend hours. There were objections from residents, yet myself, as the solicitor, could now present the economic benefits with confidence, knowing were not going to be waved away with the excuse of being technically irrelevant.

 

These positives included a commitment to door staff for the later hours – so, an economic benefit to the door staff deployed and his/her company, creating additional shifts for existing staff and potentially three new jobs overall. Increased trade would also benefit local suppliers, circulating more money in the local economy and raising additional tax revenue. These are the tangible benefits that committees can no longer ignore – real jobs, real investment, real impact.

 

The changes do not stop there though. The Licensing Act 2003 is due to be amended so that London boroughs must consider the Mayor’s London Strategic Licensing Policy. The policy, currently under consultation, highlights how licensing should support economic growth, hospitality, culture, nightlife and events. Once again, the emphasis is on the positive role licensed premises play in a community.

 

In a sector currently under a significant amount of economic pressure, where it can seem as though calls for positive action in the hospitality industry are unheard, I hope there is some small comfort in knowing that, at least in licensing, the contributions of your premises are now being acknowledged. Operators can now be confident that the benefits their premises bring to the community must be recognised in licensing decisions.

 

The government will monitor the NLPF and consider whether growth in the hospitality sector should become a statutory licensing objective. As the NLPF notes: “We will monitor its impact carefully and in discussion with a range of stakeholders, consider whether other steps, such as making growth of the hospitality sector a statutory licensing objective, may be needed to help deliver these outcomes.” If that day comes, it will be a game-changing moment for the industry – and one certainly worth raising a glass to.