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Licensing Hours Extensions Bill, Second Reading, House of Commons, 17 January 2025

The Local Government Association (LGA), representing councils across England, welcomes a Private Member’s Bill proposing a change to how Licensing Hours Orders under the Licensing Act 2003 are made. The Bill would allow such orders to be made by negative resolution statutory instrument, simplifying the process for temporarily relaxing licensing hours on occasions of national significance.


Key messages

  • The current process for Licensing Hours Orders requires parliamentary approval, which can delay decision-making and lead to practical challenges for councils. For example, during recent national celebrations such as our English teams’ major sporting finals or royal events, councils faced situations where temporary extensions to licensing hours could not be agreed in time. This was notably the case when a recent football final involving a nationally beloved team occurred on a Sunday morning, a time when many pubs would be closed. Parliament was in recess, leaving councils under great pressure to either grant applications outside the law or else turn an improper blind eye to non-compliant openings.
  • The proposed change to allow negative resolution statutory instruments would enable faster responses while maintaining parliamentary oversight. This is a pragmatic reform that we support, as it will help councils manage such situations more effectively and avoid situations like the above.
  • Licensing decisions are most effective when taken at the level closest to our citizens and communities, as only local authorities have the in-depth understanding of individual high streets, and the interplay between entertainment venues, public safety considerations, cultural and sporting institutions, and the unique alcohol and social cultures of their areas. Licensing decisions demand this nuanced, grounded perspective, which cannot be replicated at a national or centralised level. A change to Licensing Hours Orders, as highlighted by the Private Member’s Bill, demonstrates the value of such flexibility.

Broader Licensing Act 2003 reforms

While the LGA supports this specific reform, we would like to draw attention to other arguably more critical areas where amendments to the Licensing Act 2003 are urgently needed. Councils across England face significant challenges in fulfilling their statutory licensing duties, and we urge Members of Parliament and the Government to take this opportunity to also consider the following reforms:

Licensing fees

  • Licensing fees have not been increased since 2007, leaving councils unable to recover the costs of administering their statutory duties. Many councils are now incurring financial losses simply by fulfilling these obligations.
  • Councils are not asking to profit from licensing fees, which has long been prohibited. They merely need the system to be financially sustainable, and for this the government, at a minimum, must update the fee structure to reflect current costs.
  • In fact, local licensing authorities should be empowered to set fees based on local conditions. A one-size-fits-all national fee structure does not account for the diverse needs and costs across different areas.
  • Local authorities know their communities best and should have the flexibility to determine appropriate fees, which would also ensure this situation is not given a short-term fix (however necessary this may be) but given a proper and enduring solution.

Public Health as a Licensing Objective

  • The LGA has long called for public health to be added as a fifth licensing objective under the LA03. This would allow licensing committees to consider health impacts explicitly, alongside the existing objectives (prevention of crime and disorder, public safety, prevention of public nuisance, and protection of children from harm).
  • Including public health would align the licensing system with broader public policy objectives and help promote healthier, more resilient communities.

Cumulative Impact Assessments

  • Currently, councils must consider each licensing application solely on its individual merits, with limited ability to account for the cumulative impact of multiple premises in an area.
  • Amending the Act to allow cumulative impact assessments would enable councils to take a more holistic approach, addressing issues such as over-concentration of licensed premises and their effects on public safety and community wellbeing. Finally, this would also help Councils across the country improve our culturally vital high streets.

Conclusion

The LGA appreciates Members’ willingness to improve the Licensing Act 2003 through the proposed reform to Licensing Hours Orders. However, we urge policymakers also to seize this opportunity to address the broader issues outlined above. These reforms are critical to ensuring that local licensing authorities can sustainably deliver their statutory responsibilities and better support their communities.

By updating licensing fees, introducing public health as a licensing objective, and enabling cumulative impact assessments, central government can empower councils to shape their local areas in ways that reflect the needs and priorities of their residents. Local licensing committees are uniquely equipped with the local knowledge, on-the-ground expertise, and direct connection to their constituencies to administer licensing in a way that reflects the complex realities of their areas. They understand how to balance economic vitality, public safety, and community cohesion. By further empowering councils with greater flexibility, the Government can ensure that licensing policies remain responsive to the distinct needs of each community, delivering fair and effective outcomes that resonate with local priorities. 

We look forward to working with Members of Parliament and the Government to achieve these much-needed changes.