Licensing Act 2003 (Liaison Committee Report)

Lord Foster of Bath Excerpts

Wednesday 17th May 2023 Grand Committee

[Lord Foster of Bath (LD)]

My Lords, I suspect that very few of us would doubt the merit of the decision that was made to introduce special Select Committees and ensure that some carry out post-legislative scrutiny. It is equally welcome that, from time to time, the Liaison Committee conducts a follow-up inquiry. I had the opportunity to serve on both the 2017 special committee that reviewed the 2003 Licensing Act and the Liaison Committee in its follow-up work, which reported last year. Both were extremely ably chaired by the noble Baroness, Lady McIntosh of Pickering.

As we have already heard, the committee concluded that a radical, comprehensive overhaul of the Act was needed, with the work of licensing committees being taken over by planning committees and appeals going to the Planning Inspectorate rather than to magistrates. The committee made a large number of recommendations, which included: better training of councillors engaged in licensing activities; increased safeguards in relation to the extra powers given to the police; the use of taxation and pricing measures to control excessive consumption; a reconsideration of measures such as early morning restriction orders and late night levies; and bringing the sale of alcohol airside within the ambit of licensing legislation. I want to concentrate my remarks on just two of the other recommendations that we made: greater co-ordination between the planning and licensing functions of local authorities; and measures to embed the agent of change principle into planning legislation, guidance and practice more effectively.

In terms of co-ordination between planning and licensing, the Select Committee recommended:

“Sections 6–10 of the Licensing Act 2003 should be amended to transfer the functions of local authority licensing committees and sub-committees to the planning committees”,


and we suggested that there should be trials of this in pilot areas. When the new regime was being designed at the turn of the century, local authority planning committees were in full control of nearly all aspects of land use other than licensing. The committee concluded that it was—and, frankly, remains—a mystery why, when control of land use for the sale of alcohol was being considered, it was thought necessary to set up committees with different constitutions and powers. The result is absurdities like applications for new pubs receiving planning permission but not alcohol licences, or vice versa, sometimes on the grounds that the noise anticipated would be excessive in a residential area for planning purposes but not for licensing purposes.

The committee’s proposal would have resolved those absurdities. Responding to the Select Committee’s report, the Government acknowledged that there was a problem, saying that they

“recognise that coordination between systems is inconsistent and could be improved in many areas”.

However, as we have sadly heard, the Government have ruled out even trials of our proposals. I will suggest to the Minister two other reasons why the Government should reconsider.

The first is quite simple. As the noble Baroness has already said, planning policies compete with each other but also with licensing policies. Decision-makers must weigh up competing policies—both planning and licensing—on a case-by-case basis. Surely the Minister agrees that managing that balance is best done by a single decision-making body.

The second argument relates to current problems within planning decision-making. The planning process is frequently blamed for a shortfall in the provision of new housing. It is taking longer and longer to approve even planning permission for home extensions. Last year, for example, more than 100,000 such applications took more than eight weeks to reach a decision. It would be easy to blame local planning authorities but LGA research shows that, faced with reductions in funding, 305 of the 343 planning departments are operating at a deficit. As a result, they have significant staff shortages. A quarter of planning authorities do not even have a head of planning reporting directly to a council chief executive. England’s chief planning officer, Joanna Averley, acknowledged this recently, saying that there are

“not enough planners coming into local government”.

She added that the Government do not have the funds to pay for more.

It is plain that a major amendment to the planning process will have to come sooner rather than later. The amalgamation of planning and licensing through economies of scale would go some way towards helping the problems I have described. Does the Minister accept that this would be the time to include reform of the licensing process so that the task is given to planning committees, as the Select Committee first recommended six years ago?

Another example illustrating the potential confusion between planning and licensing is in respect of the agent of change principle; I hope that my comments here will complement those of the noble Baroness. Put simply, the agent of change principle ensures that a new development must shoulder responsibility for compliance when situated near, for example, an existing music venue. Similarly, if a music venue opens in an existing residential area, the new venue would be responsible for complying with residential requirements such as enhanced sound-proofing.

Members of the Select Committee were pleased that the Government agreed with our recommendation that the agent of change principle should be reflected in both the National Planning Policy Framework and Section 182 guidance. This has now happened. However, the Liaison Committee heard that the principle is inadequate as it stands and does not sufficiently explain the duties of all parties involved. It needs to go further to protect licensed premises and local residents in our changing high streets. Indeed, coupled with the lack of consistency between the planning and licensing systems, the current arrangements are still not guaranteeing the protection of live venues.

In a recent debate on the levelling up Bill, I cited two examples—the Night & Day Café in Manchester and the Jago in Dalston—both of which have both been served with noise abatement notices as a result of complaints from residents of newly developed properties in their vicinities. Fortunately, the Jago prevailed at appeal and the noise abatement notice was withdrawn by the council. For Night & Day, however, the appeal has still not been resolved after lengthy delays.

Under the present arrangements, the agent of change principle is not covered by legislation; it is only in policy, with language that has proved vague. How do decision-makers interpret words such as “effectively”, “unreasonable” or “suitable”? How do they balance the agent of change principle against, for example, the urgent need for more housing? How do existing businesses know well enough in advance about new developments that may have an impact on them?

To resolve such issues, the Liaison Committee recommended that:

“The Government should review the ‘Agent of Change’ principle, strengthen it, and consider incorporating it into current planning reforms in the Levelling-up and Regeneration Bill”.


The Government did not disagree; and they also pointed to the then upcoming Levelling-up and Regeneration Bill as a vehicle to address these concerns.

As we have heard, in Committee, the noble Baroness, Lady McIntosh of Pickering, moved an amendment, which I strongly supported, which would have incorporated the agent of change principle into law for licensing and other purposes. The amendment would have helped the Government achieve what they agreed was needed: greater clarity about what was expected of councils and businesses. However, the Minister responding, the noble Baroness, Lady Scott of Bybrook, claimed that the amendment was not needed and gave the reasons we have already heard. She said that

“we will make sure that our policy results in better protections for these businesses and delivers on the agent of change principle in practice”.—[Official Report, 24/4/23; col. 995.]

But there are currently no such relevant changes proposed in the Bill. So I repeat the question asked by the noble Baroness: can the Minister explain exactly how the Government intend to achieve both the recommendations of the Liaison Committee and, more importantly, their own promise?

I began by welcoming special Select Committee and Liaison Committee follow-up reports. Frankly, it would be even more welcome if the Government paid greater attention to their work and proposals.