Government may simplify licence change process

November 28, 2007: Managers of licensed premises may get a reprieve from having to apply and pay for an amended licence if they are only making a slight change to the way their business is run as long as there is no impact on the licensing objectives, if the public supports proposals set out in a new consultation announced by the Department for Culture, Media and Sport.

Currently any small change to the way a licensed premises is run, such as small-scale refurbishment, choosing to serve food in a pub or hosting an acoustic night for local musicians, can only be achieved through the full variation process — at an average cost of £385 per variation.

The consultation offers up three options:

l Give local councils the discretion to decide if a change is insignificant enough to qualify as ‘minor’ (the Government’s preferred option).

l Prescribe what is a minor variation on the face of the Act, taking away councils’ discretion.

l Do nothing.

Around 30% of applications to vary licences are for small changes. The total cost to applicants, including theatres, cinemas, live music venues, bars, village halls and members’ clubs, is estimated at being between £2.3 and £4.3 million per year.

Depending on which option wins following the three-month consultation, business could save somewhere in the region of £1.5 to £2.8 million per year.

Licensing Minister Gerry Sutcliffe said: “After two years it has become evident that it is not necessary for a premises to go through the full variation process if they are only making a small change, such as minor refurbishment.

“Local councils who are familiar with local licensed premises should have the discretion to decide when a variation is so insignificant that it’s not necessary to go through the full variation process.

“If the public agrees, this deregulatory change could save business up to £2.8 million a year.”

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