Licensing Bill: Who will hold the Premises Licence?

By David Clifton of thePublican.com's legal team of experts from London solicitors Joelson Wilson.​

There has been much debate about who may apply for and be granted a premises licence when the new Licensing Act is introduced.​

In particular, pub companies operating tenanted estates have expressed concern that premises licences could be at risk of being revoked without their knowledge, if tenants are allowed to apply for and be granted a premises licence.

At least we now know that a register of interests will be maintained by the local authority, so that a freeholder and other interested parties may be informed if a licence is put in jeopardy.

Nevertheless, the provisions of the Licensing Bill regarding premises licences are ambiguous. Section 16 of the bill, headed "Applicant for Premises Licence", says that one of the categories of person who can apply for a premises licence is "a person who carries on, or proposes to carry on, a business which involves the use of the premises for the licensable activities to which the application relates". Licensable activities include the sale by retail of alcohol.

This does not necessarily mean that the tenant is the only person who can apply for a premises licence for a leasehold public house. The section does not say that the applicant has to carry on the licensable activities personally. A pubco, such as Enterprise or Avebury, carries on the business of letting buildings to be used as pubs, so why should they or their nominee not be applicants?

If they own the premises before they let them to the prospective tenant, the tenant could be designated on the licence as the premises supervisor.

• New licences​

Taking the simplest case, a person who owns the freehold of a freehouse can apply for the premises licence. Section 15 says that nothing in the act prevents an individual who holds a premises licence from also being specified in the licence as the premises supervisor.

Obviously it is also true that in the case of a pub which is let, the tenant could apply for the premises licence as he or she carries on or proposes to carry on a business which involves the use of the premises for the licensable activities. However, landlords such as pubcos are unlikely to allow new tenants to apply because they will control the situation before granting a lease.

Existing licences​

The transitional provisions in the bill deal with the conversion of existing licences into a new premises licence, during the expected six month transitional period.

The applicant must either hold the licence already or have the consent of the holder to make the application. On the face of it, one might think this favoured an application by the tenant who will already hold the justices licence, but many licences are held jointly by the tenant and the landlord's area manager, so who is to apply for the new premises licence in this situation?

Does the joint licence-holder have to approve? And what if they do? Answers on a postcard please.