Licensing Bill could lead to £4.5m worth of red tape on leases

Pub leases may need to be rewritten when the new Licensing Bill comes into force, meaning yet more red tape for licensees.

The industry's Red Tape Group estimates that it could cost the pub industry £4.5m to update the leases when the new licensing regime is implemented.

Licensees with opening hour restrictions in their agreements and those with control of premises licences could be forced to renegotiate their leases.

Publicans could also face amendments to their leases instigated by local authorities. Some authorities want assurances from property owners that there are responsible operators in the venues.

The Red Tape Group, which has been monitoring legislation since New Labour was first elected six years ago, says there is little sign that the flow of regulation is ceasing. And the new Licensing Bill is set to add more regulation to the pub property market. According to the group a whopping 153 new pieces of legislation that affect the pub trade have been introduced since New Labour came into power in 1997 and there is little sign of the flow of regulation ceasing.

Its latest research revealed that 2002 has been the worst year for red tape yet, with 44 pieces of legislation being introduced that affect pubs.

Three-quarters of those have imposed costs on businesses in both money and time.

The Red Tape Group is heavily lobbying the government to review its decision not to give pub companies the right to register an interest for a property.

Kate Nicholls, spokeswoman of the group, said: "If the registration of business interests goes through the landlords will not need to amend their leases.

"We are also concerned that licensees will face additional red tape from licensing local authorities in the form of changes to leases."

• Opening hours​

Tenants and lessees who have opening hour restrictions in their leases could have to negotiate with their landlords if they want to operate with more flexible opening hours.

The new Licensing Bill supports staggered opening hours rather than a terminal hour which should stop the problems that crop up when everyone is leaving town centre pubs at the same time.

Licensees who want to change their hours, whether to open later or simply to have more flexible opening times, may have to go back to their landlords to change the terms of their lease.

Register of interests​

Another factor that could affect leases when the new bill comes into effect is the register of interests.

In April the government overturned an amendment put forward in the House of Lords which would have allowed a company to register an interest in their pub premises with the local authority.

Pub and property companies fear that if the licensee has control of the premises licence, they could be kept in the dark if there are any problems with their sites.

Although it is likely that a lot of pub companies will insist that they control the premises licence, many other companies may want to ensure they have at least some control over the premises by amending their leases to reflect this.

Local authorities ​

Local authorities could push for property-owning companies to have terms and conditions in their leases to ensure that those operating sites are acting responsibly.

It is understood that Westminster City Council has been looking to implement this for some time.

If all local authorities took this approach it could mean even more burdens and paperwork for licensees.

• Licensees are being encouraged to let the Red Tape Group know about their concerns. Fill in the Red Tape petition - click here​