Licensing Act: winners and losers

by Richard Williams of thePublican.com's legal team of experts from London solicitors Joelson Wilson.​

There is no doubt that once the new Licensing Act is fully implemented and is up and running, "winners" and "losers" will emerge within the industry as a direct result of the new legislation. Here are my predictions about three types of premises that will either gain and lose out when the new legislation becomes effective.

The traditional pub​

The traditional pub currently trading until 11pm is likely to be a winner in terms of trading hours and potential takings, but a loser in terms of compliance cost under the new legislation. Traditional pubs will be entitled to vary a premises licence to trade beyond 11pm, although in residential areas any substantial increase in hours is likely to be opposed by residents or the police. Costs will generally be increased, as a publican trading under the existing legislation with no more than an on-licence currently pays a £30 court fee for the renewal of his licence every three years. The cost of a premises licence is likely to be £100 to £500 (possibly less on conversion) with an estimated annual charge of £50 to £150. Large pub companies with traditional estates will find that compared to their existing compliance costs, costs on conversion will be substantial.

The late-night café-bar​

A late-night city centre café-bar, currently trading with a public entetainment licence (PEL) and special hours certificate, is likely to be a winner in terms of trading hours and a winner in terms of compliance cost under the new legislation. Subject to residential objections, such a bar would be entitled to apply to extend its trading hours and would potentially be able to extend opening hours and increase takings, but this would be subject to trade not being reduced by traditional pubs extending their opening hours. Compliance costs in certain areas will be reduced as PEL renewal fees can currently amount to several thousand pounds in certain areas. The estimated fee (applicable nationally) for a premises licence"renewal" each year is likely to be no more than £500.

The nightclub​

Nightclubs will be winners in terms of potential trading hours and fees although, again, they may be subject to more competition from traditional pubs and bars being able to extend their opening hours, eroding the traditionally extended opening hours of nightclubs. As with late-night café-bars, fees should be reduced as annual premises licence fees (set nationally) will be payable, rather than PEL renewal fees (which are substantial in some areas).