London could get £2bn boost if it follows New York City blueprint

New York City with vibrant skyline and bustling streets — representing the dynamic hospitality model that London could emulate to boost its economy.
Previous plan: New York City’s vibrant hospitality scene, supported by flexible licensing powers, serves as a blueprint for London’s potential £2bn economic boost through reform (Getty Images)

If the London mayor was given more influence over licensing to bring it closer to New York’s system, it could boost the sector by £2bn a year, new research has predicted.

The new analysis published today (Friday 22 August) by City Hall revealed the current licensing system in the UK is often seen by venues as inconsistent, lacking transparency, and overly weighted toward objections.

It said that changes to licensing of the restaurant and hospitality industry, could help to support businesses and extend opening hours, increasing spending and creating more businesses across the capital.

The report looked into the way the system works in New York City, where the Mayor of New York has considerable influence over licensing rules and regulations compared to London.

They can set licensing policy priorities, propose changes to state laws that govern licensing, appoint key officials in licensing-related agencies, and launch initiatives to support businesses.

Al fresco dining

Using data from a 2019 report on nightlife in NYC it revealed that monthly spending on night-time dining equalled an estimated $500m in 2016 ($653 million in 2024, or £490m). The City Hall report said that as a comparative to London this would mean approximately £400m per month in 2024.

The news was released as the Mayor of London, Sadiq Khan, announced the return of al fresco dining and drinking to St Martin’s Lane, in the heart of the West End, as part of his commitment to increase outdoor dining and extend opening hours as part of the Summer Streets Fund.

Khan said: “Our new analysis shows that changes to licensing can boost our economy by billions each year and I’m committed to working with councils to support our restaurants, bars and cafes and unlock the full potential of our capital’s nightlife, as we build a better London for everyone.”

Fit for purpose

UKHospitality chair Kate Nicholls said: “A fit-for-purpose licensing regime that supports and incentivises businesses to invest and innovate is crucial to a thriving hospitality scene in the capital, and I’m pleased that the Mayor is taking the lead on this through his backing of al fresco dining.”

She added: “I have high hopes for positive changes to licensing in London in the near future, and for businesses more widely following the Government response to the licensing task force reforms. Hospitality is absolutely critical to London’s economy and I look forward to continuing to work with the Mayor on delivering positive change for the sector.”