Government launches consultation on alcohol licensing changes

The government has initiated a consultation on potential changes to the Licensing Act 2003.  The consultation seeks to streamline regulations for businesses holding premises licences, particularly in relation to off-sales and the use of adjacent pavement areas for alcohol consumption. The consultation started on 16 May and will end on 11 July.

Background

The Licensing Act 2003 allows premises licence holders to sell alcohol for on-site consumption (“on-sales”), off-site consumption (“off-sales”), or both. Off-sales enable businesses to sell alcohol for takeaway or delivery, and for consumption in a separately licensed pavement area, provided the premises has a pavement licence in place.

During the COVID-19 pandemic, the Business and Planning Act 2020 introduced temporary regulatory easements, allowing on-sales-only premises licence holders to automatically offer off-sales without needing to amend their licence. This was aimed at helping pubs and restaurants continue trading during lockdowns by facilitating takeaway and delivery alcohol sales. The Act also simplified the process for obtaining pavement licences and capped application fees.

Current developments

The Levelling Up and Regeneration Act 2023 has permanently extended the streamlined pavement licensing provisions from the 2020 Act. However, the future of the off-sales easement remains undecided and is set to expire in March 2025. If this provision lapses, businesses that have benefited from the easement will need to apply for a licence variation to continue off-sales, which will be costly and time-consuming.

Recognising the ongoing financial challenges faced by the hospitality sector, the government has expressed its commitment to support these businesses. In September 2023, it announced an intention to develop a unified consent regime, encompassing licensing consent for the consumption and sale of alcohol in licensed pavement areas.

Consultation proposals

The consultation outlines three options for reform:

1. Permanently adopt the temporary regulatory easements for off-sales under the Business and Planning Act 2020, allowing on-sales-only premises licence holders to continue off-sales without a licence variation.
2. Amend the Licensing Act to extend the definition of on-sales so that it includes consumption in a licenced pavement area. This would mean that on-sales only licence holders would be able to automatically sell alcohol for consumption in an adjacent licensed pavement area without any need for a licence variation.
3. Amend the Licensing Act to permit on-sales only premises licence holders the right to make off-sales to any area for which there is a pavement licence. As with option 2, this would mean that on-sales only licence holders would be able to automatically sell alcohol for consumption in an adjacent licensed pavement area without any need for a licence variation. I

The government proposes to implement the chosen option through a Legislative Reform Order (LRO) under the Legislative and Regulatory Reform Act 2006. This process would involve scrutiny by both the Business and Trade Committee in the House of Commons and the Delegated Powers and Regulatory Reform Committee in the House of Lords.

The consultation seeks input from a wide range of stakeholders, including the hospitality industry, local licensing authorities, police, licensed premises, residents’ associations, and other interested parties. Key organisations being consulted include the Local Government Association, UK Hospitality, the British Beer and Pub Association, and various alcohol health groups.

The consultation is open to the public, and feedback can be submitted online through the GOV.UK website.