News Analysis: The coming revolution

The government has revealed its final plans for what has been touted as an "overhaul" of the licensing regime. The Police Reform and Social Responsibility Bill had its first reading in Parliament last month - and is due to have its second reading and be debated for the first time, today (December 13).

It's the start of a long journey through Parliament. But what is in the plans that could have a lasting impact on the trade? And how is the Home Office justifying these measures? Here we look at some key areas…

Why is the government changing the licensing laws? ​

The coalition, at least the Tory part of it, has been unequivocal in its belief that Labour's Licensing Act has been a failure. And it has been egged on by the right-wing press, most notably the Daily Mail. The Home Office press release on the measures stated: "Last year almost one million violent crimes were alcohol-related, and one-fifth of all violent incidents took place in or around a pub or club". James Brokenshire, the Home Office minister responsible for the changes, said: "The introduction of 24-hour licensing promised a Continental-style 'café culture' which has not materialised - instead we see drunkenness, violence and anti-social behaviour and too many of our town and city centres are now considered no-go areas."

Many in the pub trade accept there are problems, but feel councils and police are not using the powers they already have - and these changes are unnecessary. The trade has already lobbied hard against the worst aspects of the proposed changes, and this is set to carry on now the Bill has entered Parliament.

Who will pay the late-night levy and how will it work? ​

This is a key part of the reforms - and to signify this, it has its own chapter in the Bill. The measure will allow councils to charge on and off-trade outlets that open after midnight an annual fee. The Home Office says the problems caused by the "late-night economy" are "particularly costly for the taxpayer as the increased need for a police presence on the streets late at night requires expensive overtime".

However, councils will be allowed to offer discounts and exemptions to pubs, clubs and shops in two instances.

The first is venues that are signed up to schemes such as Best Bar None and Pubwatch, which are "helping to reduce crime".

The other case for a discount or exemption is venues that "do not contribute to the costs associated with policing the night-time economy".

The Home Office has given the example of hotels, but no doubt shops and supermarkets will be queuing up to argue they should not pay the levy on this basis.

The one positive for pubs is that if big supermarkets do have to pay the levy, they are likely to have to pay more as it will be based on rateable value. Charges suggested so far mean that venues in the £4,301 to £33,000 bracket would pay an annual fee of £768. But any outlet selling alcohol with a rateable value above £125,001 will pay £1,493.

Who will be able to object to a new licence or complain about an existing licence? ​

Anyone. Under the current Licensing Act, objectors must live in the "vicinity" of a pub or shop to be able to complain. But the new Bill proposes this rule should be scrapped, so anyone can voice objections, "regardless of their geographic proximity". The Home Office has acknowledged this could lead to businesses making representations against potential new competitors coming into the area. But, it says: "A fully balanced and evidenced argument will need to be demonstrated by businesses and a licence application will not be refused purely on the basis of local competition. Representations will need to demonstrate how this affects the promotion of one or more of the licensing objectives."

It adds: "We believe that this proposal will encourage greater community involvement in local licensing decisions."

Will it be more difficult to get Temporary Event Notices? ​

Yes, potentially. Under the changes, environmental health officers (EHOs) will be given the right to object. And police and EHOs will be able to object to a Temporary Event Notice (TEN) if it falls foul of any of the four licensing objectives, instead of just crime and disorder. They will also have three working days to object to a TEN, when previously the time window was two days. Councils will also be able to apply any existing licence conditions to a notice. On the plus side, late TENs will be allowed - meaning those applied for those less than 10 working days before the event - unless the authorities object. The Home Office says the reason for the change is because of "concerns expressed by our key partners including residents' associations, the police, licensing authorities, arts and voluntary organisations and circuses".

What will be the new rules regarding underage sales?​

The maximum fine for selling to children will be doubled to £20,000. Councils and police will be given the power to permanently shut any outlet "persistently" selling to under-18s. The Home Office points out that these powers are currently rarely used. It says it will "work with the Sentencing Council and the Crown Prosecution Service to encourage greater use of powers to prosecute those found guilty of persistent underage selling".

Will local health bodies have a greater say on licensing decisions? ​

Yes. Primary care trusts and local health boards will become known as "responsible authorities". These authorities have "significant power" within the regime, as the licensing authority must hold a hearing to consider any relevant representations made and must consider these representations when making a decision on a licence.

The Home Office says the reason for this measure is that alcohol-related "incidents" are often traceable to individual premises. It adds: "There is some evidence that the density of premises and the hours of sale in an area can also influence the local population's alcohol consumption and the level of alcohol-related ill-health, over time."

Licensing authorities will also become responsible authorities, which means they can refuse, remove or review a licence without having had a representation from a responsible authority.

Will there be more red tape in applying for a new licence? ​

Yes. New licence applicants will have to provide more information such as the area's "social-demographic" characteristics, specific local crime and disorder issues and an awareness of the local environment.

But the Home Office has said it will "work with the licensed trade to work out the best way to introduce this new requirement".

The lawyer's view

Anna Mathias of licensing law firm Joelson Wilson says:

"The removal of the 'vicinity' requirement and the new obligation on licensing authorities to publicise applications will, we believe, result in an increase in the numbers of representations raised over applications. Similarly, while the introduction of more flexibility in the TENs system is to be welcomed, the fact that environmental health will be able to object to TENs, and that all four licensing objectives may be taken into account, will doubtless mean that more TENs will be refused."

"Some of the other proposals do not seem to have been thought through carefully enough. For instance, the decision to make health bodies a responsible authority without introducing a new licensing objective of 'the prevention of health harm' will mean that these bodies will have to shoehorn any representations they make into the public safety licensing objective."