Alcohol Licensing (Coronavirus) (Regulatory Easements) (Amendment) Regulations 2023

Lord Smith of Hindhead Excerpts

Tuesday 24th October 2023 Grand Committee

[The Parliamentary Under-Secretary of State, Home Office (Lord Sharpe of Epsom) (Con)]

My Lords, these regulations, which were laid before the House on 11 September, contain measures that are intended to continue to cut unnecessary red tape in order to support the hospitality sector in light of the ongoing residual effects of the Covid-19 pandemic.

As your Lordships may be aware, the Licensing Act 2003 enables licences to be granted to sell alcohol for consumption on site, for consumption off site, or for both. In the event that a business obtains an on-sales only licence and subsequently wishes also to do off-sales, it can apply to its licensing authority for a variation that would add off-sales to its licence.

The Business and Planning Act 2020 included a temporary provision that meant holders of licences that covered only on-sales would automatically be entitled to make off-sales, removing the need for businesses to apply for a variation, thus saving them time and money. In practice, this has enabled pubs and restaurants that have only an on-sales licence to sell alcohol for takeaway, to operate alcohol delivery services and to extend their service outdoors. Specifically, the measures have enabled businesses to serve alcohol in the area covered by any pavement licence they had, facilitated by a parallel but independent easement to pavement licensing. This parallel easement created a temporary streamlined process to apply for and have granted a pavement licence. The Levelling-up and Regeneration Bill, currently completing its passage through Parliament, will make the changes to pavement licensing permanent.

The off-sales provision has benefited at least 38,000 licensed premises in England and Wales that previously did not have an off-sales licence, and, having previously been extended twice, it was due to expire on 30 September 2023. These new regulations extend this measure until 31 March 2025 to ensure that businesses will continue to benefit from these provisions for a further 18 months. During this time, the Government will explore the creation of a unified pavement licence that includes the consumption and sale of alcohol in the outside pavement area. Work is already under way to establish how this will work in practice. We intend to have permanent arrangements in place that can take effect when the extension expires.

I am confident that extending the off-sales provision is the right course of action in order to provide vital ongoing support to the hospitality sector. Although the immediate Covid-19 crisis has passed, the residual effects continue to have an immense impact, especially for businesses in the hospitality sector. Many continue to face high levels of Covid-related debt, with some reporting in July that their debt repayments exceeded 100% of their turnover.

For the purposes of clarity, I note that another regulatory easement set out in the BPA relating to temporary event notices—TENs—will not be extended. The provision temporarily increased the annual number of TENs that a licensed premises user can have in respect of a premises from 15 to 20 per year and increased the maximum number of days on which temporary events may be held at such premises from 21 to 26 per year. We have decided not to extend this easement for the simple reason that the additional TENs provided for in the BPA have been underutilised and are no longer deemed necessary. As such, on 31 December 2023 that easement will lapse.

These measures will continue to benefit a wide range of businesses, including pubs, restaurants, wedding venues and small festivals. The hospitality industry needs our support, so I commend these regulations to the Committee and beg to move.

[Lord Smith of Hindhead (Con)]

My Lords, I am grateful to my noble friend for introducing these regulations and I declare my interests as set out in the register. I rise briefly to add my support to my noble friend and this measure, and to thank the Government for the support given to the hospitality industry over the last few difficult years.

Personally, I am a supporter of these provisions becoming permanent, and I hope that will come, but in the meantime, I am happy that these regulations will bring 18 additional months of advantage to hard-working, tax-revenue-paying businesses. This extension enables businesses to continue to serve alcohol in the area covered by a pavement licence, for takeaway and for delivery, as my noble friend said, all without the need to apply for a variation to their licence. I am confident that this will continue to benefit thousands of licensed premises across England and Wales. I also applaud the Government’s commitment to explore the creation of a unified pavement licence that includes the consumption and sale of alcohol in the outside pavement area.

In the middle of one of the most joyless events known to mankind—“Sober October”—it is heartening to see some positive news for the hospitality industry. Clearly, the UK’s unelected temperance movement has decided that “Dry January” is no longer enough and wishes to spread even more misery. As far as I am aware, the National Police Chiefs’ Council said that, when the regulations were first introduced and then extended, no increase in crime and disorder resulted. That shows that most people—the vast majority—can enjoy a modest drink without incident.

We know the hospitality sector has taken a huge hit in recent times; although recovering, there is still a way to go for the industry to get back on its pre-pandemic feet. The instrument, as extended today, has helped and will continue to help businesses diversify. Figures reveal that 383 pubs closed in the initial half of this year, to be demolished or converted, the equivalent of two every day. In the whole of 2022, 386 such venues ceased to exist. The overall number of pubs in England and Wales, including vacant ones, now stands at 39,404. The total number of closed clubs is currently not known but the social club sector has seen a number of closures, although not on the same scale.

The reasoning is clear. Let us continue to make things easier and give opportunities to businesses to survive and thrive—positives which we know trickle down to employed staff and to customers who still enjoy socialising. Let us also remind ourselves that, when the Licensing Act was passed in 2003 and introduced in 2005, it was hailed as a means to help create a café society, something which is more easily achieved with the ability to drink al fresco.

[Baroness Finlay of Llandaff (CB)]

My Lords, I declare an interest as chair of the Commission on Alcohol Harm. I am grateful to the Minister for the way in which he has introduced these regulations and welcome that temporary event notices will not be continued.

I will focus on the impact of easement, because different health and crime risks are associated with on-sales and off-sales. There is evidence from the Institute of Alcohol Studies that, while on-sales were not happening because of Covid, sadly, the incidence of alcohol-related violence did not drop. There is a link with off-sales. In licence hearings, responsible authorities and interested parties often present evidence of off-sales being a contributory factor in crime and anti-social behaviour.

There are four licensing objectives, which we need to remember: the prevention of crime and disorder; the protection of public safety; the prevention of public nuisance; and the protection of children from harm. There is a concern that making the regulatory easements permanent could undermine local statements of licensing policy. How will responsible authorities and other parties be able to make representations regarding the suitability of the extension and how will any data be collected?

One of the problems with alcohol availability is that it plays a key role in being the biggest risk factor for death, ill health and disability among 15 to 49 year-olds—young people with their lives ahead of them. The density of licensed premises is correlated with alcohol-related deaths, hospital admissions and neighbourhood deprivation. In Scotland, research found that neighbourhoods with the most alcohol outlets had crime rates over four times higher than those with the least. Public health and licensing have to be linked, and there is overwhelming support from directors of public health for them to be included in discussions of licensing. How will they be included, to allow local authorities to make decisions in the overall interest of their community, not only of the landlord of the pub?

How will all this be monitored before the next deadline date? The balance of sales of food and drink in pubs and other places of hospitality and the social interaction that is important for a community to have somewhere to go, meet and interact does not happen with off-sales to anything like the same extent. A lot of lone drinking, which is really harmful in society, is linked to off-sales.

I hope the Government will follow the advice that came from the Secondary Legislation Scrutiny Committee:

“The Government intend to use this 18-month extension to formulate and bring forward a long-term policy in the area. When doing so, we”—


that is, the committee—

“expect the Government to provide Parliament with a more robust evidence base, including addressing concerns put forward in the consultation”.