The UK government is set to overhaul licensing laws to give pubs, clubs, and restaurants greater freedom to operate, aiming to revive the country’s nightlife economy, and remove barriers to business growth.
Key changes, which were announced by the Treasury on Thursday, will include a landmark pilot in London which will grant Sadiq Khan new powers to review rejected licensing applications in nightlife hotspots.
If successful, similar powers could be extended to other mayors across England.
The initiative forms part of a broader effort to strengthen the £62bn hospitality sector, which currently employs over three million people.
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. Now, we want to do the same for the nighttime economy, which has been neglected for so long.”
Businesses have long argued that the current licensing system is inconsistent, unclear, and anti-competitive.
Barriers have included barriers to extending late-night drinking hours, and opposition from other businesses blocking license applications.
Chancellor Rachel Reeves emphasised the need to back British hospitality, by stating: “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.”
Industry leaders have welcomed the reforms.
Notably, Nick Mackenzie, chief executive of Greene King, who also chairs the British beer and pub Association, said: “Licensing regulations provide a clear example of how well-intentioned legislation can inhibit economic growth. Excessive restrictions often limit premises’ ability to respond to changing circumstances and customer demand.”
The government have also announced the launch of a £1.5m hospitality support scheme to help businesses fill job vacancies and fund training programs, including hospitality training facilities in prisons to reduce reoffending rates.
The newly established licensing taskforce will report back in six weeks with recommendations on streamlining the system, ensuring public safety while fostering a more dynamic nightlife economy.
