Business and Planning Act 2020 (Pavement Licences) (Coronavirus) (Amendment) Regulations 2023

Baroness McIntosh of Pickering Excerpts

Wednesday 12th July 2023 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, the regulations that we are considering today were laid in draft before this House on Wednesday 7 June under Section 23(6) of the Business and Planning Act 2020 for approval by resolution of each House of Parliament. If approved and made, these regulations will extend the temporary pavement licence provisions for 12 months to 30 September 2024 and will come into effect the day after they are made.

These pavement licence provisions create a faster, cheaper and more streamlined consenting regime for the placement of removable furniture, including tables and chairs, on pavements outside premises such as cafés, bars, restaurants and pubs. These measures have been successful in supporting businesses, making it easier for businesses such as pubs, restaurants and cafés to facilitate al fresco dining with outside seating.

We know that the hospitality sector was one of the hardest hit by the pandemic, and the economic effects of that period persist today. It is therefore vital that we extend these provisions for 12 months to continue to support its recovery from the impact of the coronavirus pandemic and to avoid unnecessary confusion while we seek to make the streamlined process permanent through the Levelling-up and Regeneration Bill.

I will briefly remind the Committee of the background to these regulations. Part VIIA of the Highways Act 1980 sets out a permanent local authority licensing regime for the placement of furniture such as tables and chairs on the highway. However, the process involves a legal minimum of 28 days’ consultation. That is problematic because many local authorities take much longer to determine applications, and there is no statutory cap on the fee that local authorities may charge.

Therefore, with effect from 22 July 2020, temporary pavement licence provisions were introduced in the Business and Planning Act 2020 to support the hospitality sector in response to the coronavirus pandemic. These proposed regulations use enabling powers in the Business and Planning Act 2020 that allow the Secretary of State, where they consider it reasonable to do so, to mitigate an effect of coronavirus to extend the temporary provisions subject to parliamentary approval.

I turn to the detail of the regulations. The sole purpose of the regulations is to change the four references to the expiry date of these temporary pavement licence provisions in the legislation, amended from 30 September 2023 to 30 September 2024. The regulations do not change any other part of the temporary placement licence provisions. Subject to the regulations being approved and made, businesses will be able to apply for a licence under the process set out in the pavement licence provisions in the Business and Planning Act 2020 for the extended period until 30 September 2024. The regulations do not automatically extend licences that have already been granted under the current provisions, so businesses will need to apply for a new licence should they wish to have one in place during the extended period.

Local authorities are encouraged by the guidance to take a pragmatic approach in applying the relevant provisions, so that it is as convenient as possible for businesses to apply for a licence during the extended period. I will briefly remind noble Lords of this process.

All licence applications are subject to a seven-day public consultation period, starting the day after that on which the application is made, and then a further seven-day determination period, during which the local authority is expected to either grant a licence or reject the application. If the local authority does not determine the application before the end of the determination period, the licence will automatically be deemed to have been granted in the form in which the application was made, and the business can place the proposed removable furniture within the area set out in the application for the purposes proposed.

Licence application fees will be set locally but capped at a maximum of £100. All licences will be subject to a national non-obstruction condition and smoke-free seating condition, as well as any local conditions set by local authorities.

The granting of a pavement licence covers only the placing of removable furniture on the highway. A pavement licence does not negate the need to obtain approvals under other regulatory frameworks, such as alcohol licensing. Once a licence is granted or deemed granted, the applicant will also benefit from deemed planning permission to use the highway land for anything done pursuant to the licence while the licence is valid, such as using furniture to sell or serve food or drink supplied from or in connection with the relevant use of the premises.

The regulations will enable cafés and restaurants to continue to obtain quickly and cheaply a licence to place furniture on the highway outside their premises. If these regulations are not introduced, there is a real risk of undermining the steps that hospitality businesses have taken to recover from the economic impacts they have suffered as a result of the pandemic.

We are seeking to make the streamlined approval process permanent through the Levelling-up and Regeneration Bill. Failure to extend this measure would result in a gap in service and a return to the process under the Highways Act 1980, which would be confusing and costly for businesses and local authorities alike.

All of us in government have seen the positive impact of al fresco dining on the vibrancy of many of our high streets. I express my gratitude to local authorities for the huge effort they have made in this matter and for their hard work to enable businesses to thrive while building vibrant high streets, leading to the success of these measures. The draft regulations will allow al fresco dining to remain a reality for these businesses and provide much-needed continuity for another year while we seek to update the permanent measures through the Levelling-up and Regeneration Bill. I commend this instrument to the Committee.

[Baroness McIntosh of Pickering (Con)]

My Lords, I warmly support these regulations and congratulate my noble friend on bringing them forward. My only concern is about the ability to reach out and consult organisations representing the disabled, which I will come to in a moment.

In her introductory remarks, my noble friend mentioned what this will mean for the hospitality sector, and I warmly support that for the reasons she gave. The sector suffered heavy losses during the Covid pandemic, and it is gratifying that tourists are now returning to areas such as London—and North Yorkshire, to a certain extent—in waves that we have not seen since the pre-pandemic days of 2019. That is very welcome.

I had the good fortune and honour to chair the ad hoc Select Committee on the Licensing Act 2003 and, similarly, the follow-up committee. I was delighted that the Liaison Committee allowed us to conduct a further, follow-up inquiry. One of the issues that struck us during that inquiry was how to reach out to interested affected groups, such as organisations and groups representing the disabled, and how best to catch their attention if there was a licensing application that may be of interest or concern to them.

Can my noble friend put my mind at rest in that regard? I think she said that each individual licence is subject to a seven-day consultation, so I would like to know what mechanism local authorities use in that regard.

I note that paragraph 10.1 of the Explanatory Memorandum attached to the regulations says:

“No formal consultation has taken place on this measure”.


Perhaps one would not have expected a consultation for the reasons that my noble friend gave, that this is a continuation and a renewal. This is my main concern here. We all know disabled people and partially sighted people—they are represented in both Houses of Parliament. One error of these regulations, or any licensing application applied under them, would be if those people were not reached out to under each individual licensing application.

On a lighter note—this is not really about a pavement application—when coming back down St Martin’s Lane in the daytime today, I passed Stringfellows, which is a well-known restaurant establishment, and I was rather struck by an orange leaflet that had great prominence on two of its doors. It has applied for a renewal of a sex establishment licence as a sexual entertainment venue. I realise that this is without the remit of today’s debate, but I will write to my noble friend with a copy of the notice. We spent hours looking line by line through the Licencing Act 2003; I like to think that I am fairly interested in licensing, but it was news to me that we have any sexual entertainment venue licensed in London or any other part of this country.

I look forward to my noble friend’s response on the consultation, not just of these regulations but of each individual licence application under the regulations before us.

[Baroness Pinnock (LD)]

My Lords, that conjures up a new image of a pavement licence for Stringfellows.

I had better remind the Committee of my relevant interests in this regard as a councillor and as a vice-president of the Local Government Association.

The pavement licencing regulations are very positive and I am pleased that they will be rolled over. I have one or two questions. Even in my less-than-warm part of Yorkshire, this has been a positive move—that is the good news. However, I wonder why, when these regulations were first considered, there was no thought about an automatic rollover for businesses that had made an application and had fulfilled their obligations under the licence, and about which there had been no complaints. For businesses there is now additional bureaucracy every year when they have to make an application to the local authority. That is my first point.

I have raised my second question before. Businesses now have the opportunity to trade on the public highway. The public highway is owned by the public and must be maintained by the public. One wonders whether there ought to be a rental income for the local authority from the business for the use of the highway. Local authorities are cash-strapped as it is, and any form of additional income would be welcome. I say that because I think the licence income is very small; I think I heard the Minister say it was £100 maximum. Some establishments use quite a lot of their highway if they have a good frontage, and there ought to be some income there for the local authority.