The Mayor of London is embarking on what could be the biggest shake-up of the capital’s licensing system in decades - and one that should be welcomed by hospitality operators.
Last month saw the publication of the Mayor of London’s Draft London Strategic Licensing Policy that established principles that all 33 London boroughs must follow when making licensing decisions. The proposed reforms aim to bring an end to the postcode lottery that businesses currently endure. London’s hospitality scene is widely regarded as one of the best in the world, yet it has achieved this in spite of - rather than because of - the licensing framework that underpins it. This is in stark contrast to other major cities including Sydney, Miami, Berlin, New York and Barcelona, which have all recently benefited from a culture of enabling rather than restricting responsibly-run businesses.
As Sadiq Khan himself has acknowledged, the capital’s 33 boroughs operate with vastly different policies and approaches. These range from supportive and pragmatic to rigid and obstructive, creating an uneven playing field for operators.
The new policy seeks to introduce far greater consistency and, crucially, the 25,000-word document recognises the vital role hospitality businesses play in the economy. That is a welcome stance, particularly in light of recent inflammatory comments from one of Rachel Reeves’ advisers suggesting that the UK does not need any more restaurants.
In reality, London - and the wider UK - absolutely does need more well-run hospitality venues, whether that’s restaurants, pubs, cafés or nightclubs. While margins may be tighter than they once were, the sector employs a disproportionate number of people, contributes significant tax revenue, and plays an essential cultural role.
There is much to like in the Mayor’s draft policy, including recognition that smaller businesses and grassroots operators are disproportionately burdened by the current system; support for flexible, multi-purpose business models; a direct challenge to unnecessary and duplicated licence conditions and encouragement of pre-application engagement to help avoid costly and time-consuming hearings
Perhaps most encouraging is the pushback against blanket conditions and rigid core hours policies, with a renewed emphasis on assessing each application on its individual merits.
This could signal the beginning of the end for controversial Cumulative Impact Zones (CIZs). These have long been used in high-density areas to create a presumption against new licences, often making it extremely difficult for even well-run venues to open or expand.
The draft also reinforces the ‘agent of change’ principle, particularly important for late-night venues. This would place responsibility for noise mitigation on residential developers building near existing hospitality businesses as opposed to the venues themselves. It could help prevent the all-too-common scenario where NIMBY residents move next to established nightlife spots, complain about noise, and ultimately contribute to their closure.
That said, there are areas of concern. One issue is the potential for added bureaucracy. Questions remain over how this new strategic framework will interact with the existing system it is designed to improve. In a worst-case scenario, it could add more red tape, something that the hospitality sector will not welcome.
The proposals would also give the Mayor a formal strategic role in licensing for the first time, including significant ‘call-in’ powers. While the current Mayor appears supportive of the sector, this may not always be the case. A future shift in priorities at the Greater London Authority could create new challenges for operators down the line.
More broadly, this reform highlights the need for a wider overhaul of the licensing landscape across England and Wales, where inconsistencies between local authorities create ongoing difficulties - particularly for businesses looking to expand nationally. The picture is even more restrictive in devolved regions. Scotland operates under tighter controls, while Northern Ireland remains the most challenging market, with limited licence availability and high barriers to entry.
Even so, London’s proposals are a step in the right direction.
Operators should take the opportunity to engage with the consultation and make their views known - including highlighting the pitfalls. As with any public consultation, there is a risk that it becomes dominated by those with an axe to grind, including anti-nightlife campaigners and residents focused solely on noise concerns.
If the industry wants a fairer, more effective licensing system, it needs to make itself heard for all the right reasons.