Licensing Act 2003: Post-Legislative Scrutiny (Licensing Act 2003 Report)

Baroness McIntosh of Pickering Excerpts

Wednesday 20th December 2017 Lords Chamber

Moved by

[Baroness McIntosh of Pickering]

That this House takes note of the Report from the Select Committee on the Licensing Act 2003, The Licensing Act 2003: post-legislative scrutiny (Session 2016–17, HL Paper 146).

[Baroness McIntosh of Pickering (Con)]

My Lords, it was an immense privilege to chair the Committee on the Licensing Act 2003 and it is an equal privilege to be opening today’s debate. I refer to my interests as set out in the register, including membership of a number of all-party groups relevant to the inquiry, such as those on beer, on whisky and on wines and spirits. My husband has worked for many years for international airlines and more recently with the London School of Mediation.

We were extremely fortunate to have had an excellent, knowledgeable clerk, Michael Collon; a specialist adviser, Sarah Clover; and policy analysts, initially Tansy Hutchinson and then Ben Taylor. They were a pleasure to work with and we are very grateful to them. The committee is also indebted to all those witnesses who gave us such valuable written and oral evidence. I had hoped that we might visit various establishments at which alcohol is licensed, such as pubs, clubs and casinos, but sadly, time and resources did not permit. However, I did visit Amsterdam in a personal capacity to meet the night mayor and hear how they manage their night-time economy so successfully. The committee was enjoyable, interesting, disturbing and challenging. It was enjoyable because of its strong team of members who took to their task with great gusto and expertise, and I am glad to see so many noble Lords who were members present today.

What was disturbing was the evidence showing how much was wrong with the Act itself and, even more so, with its operation. It was challenging to formulate recommendations which, if implemented, might help to remedy the situation. The words “if implemented” are of course key. We reported in April. Seven months later we received the Government’s response, aspects of which we welcome, including recommendations which the Government accepted or were prepared to consider. However, there were also major recommendations that the Government rejected. I am glad to see my noble friend Lady Williams of Trafford in her place to answer the points that I and other noble Lords will be making. The committee reached a number of conclusions on which we would like to see government action.

In the 11 years the Licensing Act 2003 has been in force, hardly a year has passed without major amendments to it. Historically, licensing applications were determined by justices of the peace to control the sale of alcohol, a practice which lasted for 500 years until the Licensing Act 2003 transferred this duty to local authorities, acting through licensing committees. We believe it was a mistake and a missed opportunity to set up new licensing committees when the planning system was already available to regulate the use of land for many different purposes. The planning system is well suited to dealing with licensing applications and appeals, in which the interests of residents are always taken into account.

In evidence we received, hearings before licensing committees were described as “something of a lottery”, lacking “formality”, and “indifferent”, with some,

“scandalous misuses of the powers of elected local councillors”.

The committee was told of the deep disconnect between licensing and planning. The two need to be joined up. The planning system works much better because of the greater volume of work and better support from professionals. That is why we recommended that licensing applications should be heard by planning committees. The system of licensing committees had its defenders—the councillors themselves, local authorities and the Government—but also its critics, particularly the users of the system. Applicants, businesses, residents or the lawyers representing them were all critical of the decision-making generally and, in some cases, the denial of basic justice.

The Government say in their response that,

“we do not intend to take the approach recommended by the Committee at this time”.

They believe that it is enough to improve training and provide stronger guidance—which we did recommend —on how licensing committees should be conducted. While better training and guidance may help, they cannot mend the basic flaws of the system. If the Government do not intend to follow our recommendations “at this time”, I ask the Minister to tell us at what time she thinks this would be appropriate.

Our report recommends that appeals from planning committees on licensing matters are heard by planning inspectors, not magistrates, who until 2005 dealt with applications. The committee cannot understand how a magistrate, who is no longer considered by the Government to be the right person to consider a licensing application, should nevertheless be the right person to hear an appeal. Instead of appealing, parties are increasingly seeking judicial review, which of course is costly. I commend to the Minister the committee’s idea that appeals should go to the appropriate court, as for gambling; appeals against the Gambling Commission now go to the First-tier Tribunal and thence on a point of law to the Upper Tribunal.

We heard in evidence that there could be scope for mediation between the parties with a view to aligning the interests of the licensing applicants with the needs of local residents. We welcome the Government’s acceptance of increased mediation. We believe that a full “agent of change” principle should be adopted in both planning and licensing guidance to help protect both licensed premises and local residents from consequences arising from any newly built development in their vicinity.

On occasion disabled people have difficulty accessing licensed premises, sometimes because of lack of access to appropriate facilities owing to the age of the building, and occasionally younger customers are excluded for failing to produce proof of age. Last year the Government rejected a proposal by the Select Committee on the Equality Act 2010 and Disability that compliance with the Equality Act should be an additional licensing objective. We recommend that the law be amended to require, as in Scotland—I declare an interest as a non-practising Scottish advocate—that an application for a premises licence should be accompanied by a disabled access and facilities statement, putting more of an onus on the applicants to ensure that the premises are disabled-friendly or to explain why not. As the Government say they are sympathetic on the issue of accessibility and point out that the 2017 Conservative manifesto made a commitment to review disabled people’s access to licensed premises, why, when we offer them a cheap, easy and painless way to achieve that, would they not want to seize the opportunity?

On pricing and taxation, the committee urges the Government to look at ways in which taxation and pricing can be used to control excessive consumption, particularly with regard to the health aspects. We welcome the announcement in the Budget of an undertaking to consult on measures to raise the duty on white cider.

The Government are on the record that they will consider the introduction of minimum unit pricing for alcohol, and their response to our report repeats that minimum unit pricing remains under review. In 2012, the Scottish Parliament passed an Act to introduce a minimum unit price. Will the Minister agree that—assuming that MUP is brought into force in Scotland, that Scottish Ministers publish their statutory assessment of MUP and that the assessment demonstrates that the policy is successful—MUP should be introduced in England and Wales without further delay? It is a matter of ongoing debate whether taxation, minimum pricing or minimum unit pricing is the most effective as a tool to encourage responsible drinking.

The committee looked into the exception made for the sale of alcohol airside and portside, with the Licensing Act 2003 being expressly disapplied. Currently, premises airside can be open 24 hours day and can sell alcohol to young people and to drunks. We believe that the increasing incidence of air rage—a 34% increase in one year alone—is fuelled largely by the generally relaxed sale of alcohol at airports once a passenger has passed through customs. Incidents on flights are notorious and particularly alarming given the height, the confined space and the pressure, and such episodes can lead to the diversion of flights, at huge expense. In its evidence, Jet2.com told us that it had to deal with 536 such disruptive incidents in the summer of 2016 alone, more than half of which were reported to have been fuelled by alcohol. Its disruptive-passenger data for 2017 show an increase in incidents of 58% on 2016, and those incidents are year-round, not confined to the summer. We recommend that the 2003 Act should fully apply airside, as it does in other parts of airports, and as it should apply portside at ports and hoverports too. The Government continue to argue that there may be practical problems allowing inspectors to operate airside, although there seem to be no problems allowing access to those selling alcohol airside.

We welcome the Government’s commitment to the safety of passengers and the undertaking to hold a consultation to seek views on how to minimise the impact of disruptive passengers on the travelling public. Yet I would confidently predict the results of any such government consultation: the airlines will favour the application of the Act airside but the airport and retail industry will oppose it. At that stage the Government will have to make up their mind. We have shown a straightforward way to do so now by a simple order lifting the exemption. The Government should do so as a matter of urgency and certainly before flights in the summer of 2018. The Government accept that what they call disruptive events are on the rise, so why would they not want to act now? We further urge the Government to act expeditiously to ensure that Section 141 of the Licensing Act, which makes it an offence to sell or attempt to sell alcohol to a person who is drunk, is properly enforced, thus helping to prevent preloading and reduce the excessive drunkenness and anti-social behaviour often linked with it.

Undoubtedly, the night-time economy and the retail trade are potential growth areas and contribute greatly to urban and rural economies. It is a matter of note that the number of pubs and nightclubs have reduced while the off-trade has expanded. In 1994, 58% of alcohol was sold by the on-trade and 42% by the off-trade. By 2005, when the Act came into force, the position was reversed. Today, 70% of alcohol is sold through off-licences and supermarkets. With lower overheads and high volume of sales, supermarkets can sell high-strength alcohol at very low prices, often leading to the very worst anti-social behaviour and disorder.

Voluntary responsibility deals, local schemes and community partnerships are not enough on their own to tackle the problem. The committee is persuaded that the more sophisticated measures targeted at the off-trade selling alcohol should be followed in England and Wales. We considered the measures in the Alcohol etc. (Scotland) Act 2010. Measures such as banning BOGOFs—buy one, get one free—and restricting promotion and advertising seem to have worked. In any event, transparency and scrutiny of the guidance issued by the Home Office is essential.

I look forward to hearing what the Minister will say in answer to the points I have raised and to hearing all the other speakers who will contribute to the debate. I beg to move.

--- Later in debate ---

[Baroness McIntosh of Pickering]

My Lords, I take this opportunity to thank all who have contributed to the debate and my noble friend the Minister for responding. Clearly, this is a subject to which we will return, and the committee will once again wish to record its disappointment that many of our recommendations have not been snatched up, including the need for urgency on the MUP and the need to look at reducing the number of retail offers, which I believe the evidence will show compellingly have worked in Scotland. As emerged from contributions from the noble Baroness, Lady Eaton, the noble Lord, Lord Smith of Hindhead, and others this evening, the committee is not persuaded of the effectiveness of late-night levies or early-morning restriction orders. I am delighted that the Government will look more closely at BIDs as an alternative in this regard.

I hope that the noble Lord, Lord Blair, is proved wrong and that we will not see more serious incidences of air rage. I take note of what my noble friend said regarding existing rights for pilots to expel someone from an aircraft who is plain drunk. There is increasing evidence this year that passengers are drinking duty-free before they even board an aircraft. That is causing enormous concern and needs to be watched. Our primary concern is passengers, but I do not believe that crew, many of whom are quite young in some carriers, should be placed in a difficult situation in this regard.

I yield to no one in my admiration for the noble Lord, Lord Brooke, and his campaigning zeal on the health aspects, closely followed by the noble Baronesses, Lady Watkins and Lady Henig—there was a bit of competition on the committee in that regard. We just need to find another mechanism to use rather than the licensing aspect.

I echo the disappointment of the noble Lord, Lord Foster, at the resources being put out to enforcement. The noble Baroness, Lady Eaton, talked about funding for local authorities. Although the committee no longer meets, I am sure we will seek to use other mechanisms such as questions to keep the matter under review.

I wish all of you, including the staff of the House, a merry Christmas, mindful of those who will have to work, including in the health service and the Armed Forces, during the Christmas period and beyond.

Motion agreed.