Labour to introduce new licensing rules to boost high street venues
The Labour government has pledged to simplify the opening process for new high street venues in a bid to ramp up British hospitality prospects.
Chancellor Rachel Reeves has said new licensing framework, which comes as part of Labour’s overhaul on planning, plans to fast-track permissions for al fresco dining, helping to “protect pavement pints”.
The government has laid out plans for dedicated “hospitality zones” which will allow outside dining, street parties and extending opening hours to be approved quicker. Ministers are are exploring ways to make it easier to convert unused shops into new venues.
Developers will be made responsible for soundproofing buildings they construct near existing venues in order to protect them from noise complaints.
Plans will be subject to a call for evidence.
Business secretary Jonathan Reynolds said: “Red tape has stood in the way of people’s business ideas for too long”.
He added: “This Government has a plan to replace shuttered up shops with vibrant places to socialise, turning them into thriving cafes or busy bars, which support local jobs and give people a place to get together and catch up over a beer or a coffee.
“Red tape has stood in the way of people’s business ideas for too long. Today we’re slashing those barriers to giving small business owners the freedom to flourish.”
Hospitality stung by Reeves’ tax hikes
Reeves said: “For too long, [businesses have] been stifled by clunky, outdated rules. We’re binning them, to protect pavement pints, al fresco dining and street parties – not just for the summer, but all year round,” she added.
This follows a bruising period for UK hospitality after the British Beer and Pub Association (BBPA) estimated that one pub will close a day in 2025.
The BBPA projected 378 pubs will close this year across England, Wales and Scotland, amounting to more than 5,600 job losses.
The industry body pointed to the heavy pressure of business rates – a tax on commercial properties – on the industry.
Pubs contribute 2.8 per cent of the total business rates bill but account for just 0.5 per cent of total business turnover, leading to an overpayment of around £500m.
The industry has faced a battering since Rachel Reeves’ Autumn Budget which included a £20bn tax raid on businesses.
The industry has shed 69,000 jobs since Reeves’ rise in employers’ national insurance contributions took effect in April – a stark reversal from the 18,000 roles created in the same period last year under the previous government.
Industry lobby group UK Hospitality launched a campaign earlier this month to reverse the “unfair” tax burden on the sector dubbed #TaxedOut.
“The 2024 Budget was a hammer blow to hospitality… businesses are reporting jobs being lost, hours cut, investment cancelled and [closures],” the group said.
Emma McClarkin, chief executive of the British Beer and Pub Association, welcomed the new licensing frame work, adding: “Red tape smothers pubs and wider hospitality which means communities and the economy miss out so, given pubs are struggling right now, it’s vital these are implemented at pace.”
But, McClarkin urged Labour to go further in reform.
“These changes must go hand in hand with meaningful business rates reform, mitigating staggering employment costs, and a cut in beer duty so that pubs can thrive at the heart of the community.”