That the Grand Committee do consider the Licensing Act 2003 (Permitted Temporary Activities) (Amendment) Order 2026.
Relevant document: 13th Report from the Secondary Legislation Scrutiny Committee
My Lords, the draft order was laid before the House on 10 September. The purpose of this instrument is straightforward: it will increase the number of temporary event notices that may be given to a single premises from 15 to 20 in each calendar year. It also increases the maximum number of days on which temporary events may take place at those premises from 21 to 26 days. Subject to Parliament’s approval, these new limits will come into force on 1 January 2027, when the entitlements reset.
Under the Licensing Act 2003, temporary event notices—TENs—provide a light-touch mechanism through which licensable activities can take place on a temporary basis without the need for a full premises licence. These activities can include the sale or supply of alcohol, regulated entertainment and the provision of late-night refreshment. TENs may also be used by premises that already hold a licence where they wish temporarily to undertake activities or operate at times that are not covered by their existing authorisation.
The TENs regime is used by a wide variety of businesses and community organisations. It can enable a pub or restaurant to host an additional event, but it can equally support an event in a school, community centre or church hall. By increasing the premises-level limits, this instrument will provide greater flexibility for well-run local events and allow organisers to respond more effectively to demand within their communities.
The Government recognise the important contribution made by the hospitality sector to our economy, high streets and communities. The sector has faced challenging trading conditions, and although this targeted measure cannot address every pressure faced by the sector, it will remove an unnecessary constraint for responsible businesses that wish to hold additional events. It can support local economic activity and provide more opportunities for communities to come together.
These limits are not untested. The higher thresholds of 20 temporary event notices and 26 days applied on a temporary basis during 2022 and 2023 as part of the response to the economic effects of the Covid-19 pandemic. The Home Office has not identified evidence that points to adverse impacts arising from previous changes to TENs limits. That previous experience is one factor supporting this change.
Following a call for evidence on how to reform the licensing regime, this Government have carefully considered the differing views expressed. Hospitality, businesses and trade bodies generally supported increased flexibility, while some local authorities, public health organisations, residents and community groups raised concerns about public nuisance, crime and disorder, public health, and pressure on local authority resources. We have taken those concerns seriously.
Lord Cameron of Lochiel (Con)
My Lords, I again thank the Minister for setting out the rationale and purpose of this order. Somewhat unusually, I find myself in complete support of the Government’s policy in this regard. The overall impact of the order, as the Minister said, is to expand from 15 to 20 the number of events that licensed premises can hold each year under a temporary event notice. That continues the trajectory that began with the temporary expansion of TENs during the Covid pandemic, a policy implemented to help hospitality businesses that were struggling so much from the impact of lockdowns.
As my noble friend Lord Hayward said, the struggles experienced by the hospitality sector have not abated. Here, I fear I am more critical of the Government, because hospitality businesses are suffering under the collective weight of this Government’s hike in employers’ NI contributions, the increased minimum wage and the increase in business rates. Perhaps the most revealing fact about this statutory instrument is the Explanatory Memorandum, which admits that hospitality businesses continue to face
“challenging trading conditions, including high input costs, low margins and wider financial pressures”.
With the greatest respect to the Minister, the Government might want to ask themselves who is responsible for those pressures. If the Government are truly committed to easing the burden on the hospitality sector, they might consider scrapping business rates entirely for most high street hospitality and leisure businesses, as my party has advocated.
I note that the consultation undertaken by the Home Office saw 70% of public health stakeholders and 51% of local authorities strongly opposed to this measure. I find that deeply troubling. I ask the Minister which health stakeholders were consulted? For example, was it mostly NHS trusts and ICBs or was it the health sector more widely—health charities, NGOs et cetera?
It is concerning that we appear to have so many people opposed to measures that will not only help struggling businesses and boost the economy but allow a wider variety of events to go ahead, with all the social benefits they bring. I therefore welcome the fact that the Government have taken the decision to proceed with this measure none the less; I commend them for standing by their policy. The Explanatory Memorandum also sets out the benefits of this policy change, as envisaged by the Government, and establishes that the entire purpose is to try to help out struggling hospitality businesses.
To conclude, although we agree with this order and welcome the fact that the Government persisted with it, there is clearly much more to be done to help our struggling hospitality sector.
I thank noble Lords for their contributions. I say to the noble Lord, Lord Cameron, that we have seen in today’s Budget a clear focus on how we can support businesses—in particular, our high street businesses—and ensure that they can respond to decades of neglect from the previous Government.
I hear the compassion and understanding from the noble Lord, Lord Hayward, concerning last night’s result. I would say that, actually, Fleetwood has plenty of places where fans can celebrate. It is a fantastic town and I wish the team all the best for their future games in the League Cup.
I will echo the noble Lord’s point and address some of the issues that were raised by the noble Baroness, Lady McIntosh. We have given careful consideration to the concerns, and this is a limited increase. It is a sensible approach, ensuring that the safeguards that govern the TENs regime remain effective, while supporting businesses and communities. Of course, as I said in my introduction, a licensing authority may issue a counter-notice to stop a TEN, and the recommendation for this change came last year from the licensing taskforce, which was led by the DBT. We held a call for evidence to understand a wide range of views, which took time, but the new limits will be in place in January. That addresses that point.
It is not unreasonable to consult, particularly on health issues. This Government recognise the significant harm that alcohol misuse can cause to individuals, families and communities. Those health responses are not surprising. Addressing alcohol-related health harms remains a key priority for this Government: in Fit for the Future: 10 Year Health Plan for England, we have committed to crucial first steps to support people in making healthier choices about alcohol, as well as setting out a multiyear funding settlement for drug and alcohol treatment through the public health grant.
There is, I think, a clear consensus on the importance of these relatively small changes, which will help and will contribute not only to our businesses, pubs and hospitality sector but to community activity, which the noble Lord, Lord Hayward, referred to. I welcome the support from noble Lords.