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Licensing Act 2003
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The Licensing Act 2003
After what feels like decades of consultation, debate, consideration and amendment the Licensing Act 2003 has arrived. Kirkhope, Howarth, O'Brien, Howells and Lord McIntosh (briefly) have all come and gone while reform has been debated. Now Richard Caborn has the task of overseeing the transition from old to new regime. That is not going to be straightforward as six separate licensing regimes become one, a new system of personal licences is developed and a lot of the old certainties are scrapped.
Background
BEDA feels that it has been patently obvious for some time now that reform was going to deliver the potential for more regulation not less. Local authority licensing committees, a broad and inclusive licensing process and a merging of the liquor and entertainment licences was always going to mean a fall in the licence fee and the potential for fewer conditions for late night venues. Conversely, it was inevitable that pubs would see an increase in costs and regulation.
Basics
The key characteristics of the new licensing system are:
Local authority as licensing authority - this was a non-negotiable for Government, as they want reform to deliver stronger representation for local residents a role for which councils are best suited. Opponents fear the politicisation of the licensing process with committees swayed to come down on the side of residents to the detriment of local business. BEDA supports to move to local authorities as we feel industry will benefit from working with a single regulator.
Licensing objectives - The Government has stated that, when carrying out its functions under the Licensing Act, councils must consider four key objectives: the prevention of crime and disorder; public safety; the prevention of public nuisance; and the protection of children from harm. Naturally, BEDA supports each of these objectives - late night venues have been aware of their wider social responsibilities for many years now.
Split licensing - A new Personal Licence for all managers will allow authorities to track individuals throughout their career (as long as the databases work). The Premises Licence covers all aspects of the venue and its operation. As with the PEL it replaces, the licensing committee will be able to attach conditions to the licence (although only following representations from another party). BEDA supports the use of conditions on licences to drive up standards and bring the minority of poor operators in line with the rest of the industry.
Operating Schedule - Each venue will need to provide the council with a plan giving a general description of the style and character of the business. Operators will be required to include details of the proposed licensable activities, trading hours, the designated premises supervisor and the steps to be taken to meet the licensing objectives. BEDA supports this comprehensive approach to regulation.
Conditions - Must be necessary and proportionate. Conditions will come for either the operating schedule or police/fire/health and safety officers. A capacity condition can be attached to all Premises Licences were to do so would benefit public safety. BEDA believes that a venue's capacity is do fundamental to safe and responsible operation that it should be a condition on all licences for venues wishing to sell alcohol for consumption on the premises.
Hours - The Government's decision to scrap national permitted hours presents operators with a real conundrum. What hours do they apply for? If they are conservative they risk being outflanked by competitor venues. Too radical and their application is likely to get a tough time from local residents. It is BEDA's view that the Government will not get the staggered and extended licensing hours they wish for from reform. Commercial forces will drive venues to a fairly early and common terminal hour.
Fee - With the Government adamant that the maximum fee for the Premises Licence will be £500 on application and a smaller sum to cover annual administration/enforcement, the majority of late night venues are in line for a saving. However, the same fee is likely to be viewed as a steep increase by pub operators. BEDA believes that the licence fee needs to be sufficient to cover efficient and effective regulation.
Next Steps
Reform will gather pace now the Parliamentary stage is all but at an end. The new system is still not expected to go live until early 2005 but there is plenty for operators to do if they want to shape the way the trade evolves in their area. BEDA is currently preparing guidance for members on getting involved in the transition in an attempt to ensure the best outcome for their venues.
The Licensing Act can be viewed as cost benefit neutral for all categories of venue be it pub, club or bar. If the new system works well it will deliver a level playing field and an effective enforcement regime that allows good operators to operate while using flexible sanctions to bring poor operators into line.
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