The UK hospitality sector is set for a significant shake-up as the government announces plans to reform licensing laws, offering pubs, clubs, and restaurants greater operational flexibility.
The initiative aims to modernise the licensing framework to foster business growth, enhance industry confidence, and create a more vibrant and welcoming hospitality experience for both Britons and international visitors. At the same time, the group remains committed to ensuring public safety and community interests are safeguarded
Among the key measures revealed by the Treasury is a landmark pilot scheme in London, which will grant Mayor Sadiq Khan the ability to review previously rejected licensing applications in designated nightlife hubs. If the pilot proves successful, similar powers may be extended to other metro mayors across England.
This reform is part of a wider strategy to support the UK’s hospitality industry, which contributes an estimated £62 billion to the economy and provides employment for over three million people.
Deputy Prime Minister Angela Rayner emphasised the government’s commitment to economic growth, stating:
“As part of our Plan for Change, we are determined to remove barriers that stifle business potential. The nighttime economy has long faced challenges, and we are taking decisive action to ensure its resurgence.”
Industry leaders have welcomed the proposed changes, highlighting long-standing concerns over inconsistencies in the licensing system. Many operators have faced difficulties in extending late-night operating hours and navigating opposition from competing businesses during licensing applications.
With these reforms, the government aims to create a more business-friendly environment, allowing the hospitality sector to flourish while maintaining appropriate regulatory oversight. Further details on implementation and timelines are expected in due course.
A high-profile panel which includes Nick Mackenzie, CEO of Greene King and Chair of the British Beer and Pub Association, alongside Kate Nicholls, National Chair of the Institute of Licensing and CEO of UKHospitality will work closely with government officials and police representatives to rapidly assess and implement licensing reforms that better support businesses across the UK.
Kate Nicholls, Chief Executive of UKHospitality and Chair of the Institute of Licensing, said:
“Cutting red tape and improving hospitality’s competitiveness is much-needed to unlock our sector’s potential to drive socially productive growth and create jobs.
“A new and improved licensing system that is fit for the 21st century will be a huge boost to the nation’s pubs, bars, restaurants and hotels, and I’m delighted that this expert group will be leading the review and finding solutions that can unlock the high street’s potential.
“It’s also very encouraging that the Government is delivering on recommendations from the London Night Time Commission to give more powers to the Mayor to review blocked licensing applications. This is an approach that can be rolled out across the country.
“We have long-maintained that there are aspects of the licensing system that are too restrictive and aren’t flexible enough to adapt to an ever-changing sector.
“Too often, we hear from businesses that are encountering barriers to growth at a local authority level. Not only do structural elements of the system need to change, but so do approaches to licensing in particularly restrictive areas.
“As our Social Productivity Index shows, foundational sectors like hospitality have the ability to deliver both economically and socially productive growth, equitably across the country.
“That’s not the case for many of the sectors prioritised by the Industrial Strategy, and I hope this work opens the Government’s eyes as to why its strategy should be broadened to include hospitality.”
Michael Kill, CEO of the Night Time Industries Association, said:
“A well-balanced licensing system is crucial for the long-term sustainability of the night-time economy. Cutting red tape and modernising our licensing framework is vital to unlocking its true potential. A 21st-century approach will empower pubs, bars, restaurants, nightclubs, and venues to thrive—creating jobs and driving economic growth.
“I welcome this expert review and the opportunity to shape a system that better supports businesses while maintaining responsible practices. The night-time economy has incredible potential, and reforming outdated legislation will help it flourish. We urge the Government to act swiftly on the task force’s recommendations and continue reviewing other policy areas that hinder investment, innovation, and growth in our sector.”