The Licensing Act 2003 - Culture, Media and Sport Committee Contents


4  THE NIGHT-TIME ECONOMY

DIVERSE PREMISES

57. The Government aimed that the Licensing Act should encourage more diversity in the type of licensed premises present on the high street, to give consumers a wider-choice of where and how to spend their leisure time and to encourage a "café society" with more family-friendly premises where younger children could safely be present.[76]

58. We received mixed views as to whether such changes have actually been delivered. The Government itself, in its evaluation of the impact of the Act, was cautious, citing limited evidence beyond more flexibility in opening times in response to customer demand. It concluded that "it may simply be too early for such changes to have fed through".[77] Industry trade bodies were more positive about the opportunities created by the Act. For instance the Association of Licensed and Multiple Retailers (ALMR) pointed to the fact that the move to a single premises licence for multiple licensable activities had encouraged the development of hybrid businesses, with adaptable social spaces and providing a number of services (morning coffee, food, alcohol and entertainment) within the same venue.[78]

59. Our assessment is that the major impetus for changes seen in licensed venues appears to have come from consumer choice and market forces. However without the alterations to the licensing regime introduced by the Licensing Act such changes might not have been possible.

LAW AND ORDER

60. The relaxation in rules on licensed premises' closing hours was introduced both to encourage more diversity of premises, and a corresponding increase in consumer choice, and to reduce alcohol-related public disorder and night-time offences.[79] Here too there is no consensus in evidence presented to us as to the effects of this relaxation and whether it has had a positive or negative impact, or indeed any impact at all.

61. The abolition of set closing times aimed to reduce late night disturbance in neighbourhoods by staggering customers' exit from licensed premises. Whilst in theory everything up to 24 hour opening is now possible, the ALMR told us that in practice less than 1% of pubs, bars and clubs hold such licences and only two use them regularly, while one in five pubs still close at 11pm and 80% are closed by midnight.[80] The Government's own evaluation concluded that on average on-trade licensed premises were trading for only 21 minutes longer than under previous regimes,[81] although this represents 10.3 million extra trading hours per year in total for all such premises.[82] The Government's submission to us concluded that there was no evidence that the ability to stagger closing hours had in fact reduced late night disturbance at all.[83]

62. The relaxation of closing times has led to more people going out locally rather than heading to a city centre. This trend has reduced problems caused by the dispersal of large numbers of people concentrated in the specific area of a city centre, but has created challenges for the police in terms of ensuring an appropriate presence in an increasing number of locations. Mr Simon Quin, Chief Executive of the Association of Town Centre Management, used the experience of Leeds as an example of the challenges this can bring:

    "They [the police] are seeing fewer people in central Leeds now on what were traditionally big nights out, like coming out on Good Friday or New Years Eve, because in the smaller suburban centres and the town centres that surround them you have a greater chance now of being able to drink until later. Rather than having the difficulties of trying to get a cab home, or get transport home from the centre of Leeds on one of those nights, people are drinking locally. That has brought its own issues, because previously you were marshalling and dealing with everybody in one location and the police were prepared for it and everything else, but suddenly this is in 20 centres around Leeds and issues can arise in those smaller centres.[84]

63. More worryingly we have heard both from proprietors of so called "final destination" venues, such as nightclubs and late night bars, and from the police and local authorities, that the problems that can be caused by customers have not diminished but have merely moved to one or two hours later than previously, stretching already limited police resources.[85] The Police Federation explained their concerns in written evidence to us:

    "the greater flexibility which was introduced by the Act has resulted in a more staggered series of closing times which stretch later into the night/early morning. In the majority of inner city areas this means maintaining a response shift at a higher resilience level (maximum number of officers available to answer calls for service) for a longer period of time. As a result, some officers are now working later shifts. For example, in one force an "afternoon" shift now stretches from 6pm until 4am. Aside from the obvious detrimental effect to the individual officer, this also has a knock-on effect of stretching the resources available to other members of the public that need assistance to the absolute limits. All too frequently our members cannot attend to emergency calls because they are tied up with intervening in pub fights or drunken street brawls."[86]

64. Many of the issues faced by proprietors and the police are not attributable to the Licensing Act. There are a number of other factors that it could be argued have had a bigger impact on the night-time landscape, such as the smoking ban, drinks promotions and below cost alcohol sales. Noctis, the trade association for nightclubs and other late night venues, told us that its members had good systems in place to deal with problem customers,[87] and that the late night sector had decades of experience in dealing with the challenging behaviour of a percentage of its customers.[88] But it cited difficulties with customers who arrived at late night venues "pre-loaded", sometimes drinking in the queue to get into a nightclub, and were consequently refused entry into the venue.[89] Noctis told us that it believed that the increase in consumption of off-trade alcohol, and the increase in below cost selling, had had a marked effect on the difficulties its operators faced.[90]

65. The density of licensed premises in certain areas can also be a cause of concern. We have heard of the increase in extremely large pubs in town centres, sometimes holding thousands of customers. These have the potential to cause dispersal problems on their own account even if their closing time is staggered compared to other venues, both in terms of controlling and moving people around and, if disorder breaks out, in getting police officers into them.[91] Equally a number of out of town venues now consist of restaurants, bars, cinemas and nightclubs all in one location, containing large numbers of people and with similar dispersal issues.[92] Although the prevention of public disorder is one of the four licensing objectives, and a licensing authority may refuse an application on the grounds that it is necessary to do so in order to promote the licensing objectives, the number of premises already present in any one area is not, of itself, a legitimate objection to a proposed premises licence. We recommend that density of venues in a particular area should always be a consideration taken into account by a licensing authority when considering an application for a premises licence, in order to ensure that the police and other authorities are able to adequately ensure the maintenance of public order, and that the Section 182 guidance should be altered to reflect this.

PARTNERSHIP WORKING

66. The Government told us of "Act's partnership philosophy" aiming to encourage partnership work between licensing authorities, relevant authorities such as the police and fire service, and the licensees themselves in order to solve licensing problems and promote the licensing objectives.[93] Licensees' groups are encouraged to participate in their local Crime and Disorder Reduction Partnerships, and guidance to the Act makes it clear that a licensing authority has a duty to work with all partners in order to deliver the licensing objectives.[94] A number of authorities hold licensing forums to give all interested parties the chance to discuss licensing issues.

67. Local authorities are also encouraged to develop a Business Improvement District (BID) with local businesses, a partnership arrangement which takes forward schemes that are of benefit to the community in an area, subject to the agreement of business rate payers. A BID is a precisely defined geographical area within which the businesses have voted to invest collectively in local improvements to enhance their trading environment. A BID is initiated, financed and led by the commercial sector, providing additional or improved services as identified and requested by local businesses. The BBPA reported that BIDs are highly successful as they not only positively promoted partnership working but also allowed businesses to tackle the issues that were most important to them.[95] Dr Martin Rawlings, Director of Pub and Leisure at the BBPA, cited to us the success of such an approach if there truly is a partnership approach: "Birmingham, I think, is probably the prime example here, in Broad Street, who have just put into their report that their offences are down from 3,300 in 2005 to little more than 1,000 this last year".[96]

68. We have also heard evidence that BIDs and voluntary Town Centre Management Initiatives are having a positive impact on night-time disorder, through initiatives such as the provision of street wardens and taxi marshals. Simon Quin told us that he believed such initiatives showed the benefits of partnership working and the need for joint responsibility for a location amongst stakeholders: "Discussions happen about things that could be improved in order to achieve recognition, rather than, "You must do that", and I think that creates a more positive attitude."[97]

69. Another initiative which is encouraging responsibility amongst bars, pubs and nightclubs is the Home Office's Best Bar None Awards Scheme. Originally developed as part of the "Manchester City Centre Safe" project in 2001, Best Bar None is designed to provide an incentive for operators to raise management standards. The Awards Scheme rewards the promotion of responsible licensed trade management through the assessment of their success at encouraging socially responsible drinking, their care and protection of customers and reduction of the potential for disorder in town centres and public places arising from alcohol abuse.

70. The Government's evaluation of the impact of the Licensing Act concluded that:

    "There are positive signs that the 2003 Act has encouraged more effective local partnerships to tackle issues. The Scrutiny Councils found that improved partnership working between licensing officers and other enforcement bodies was starting to have a real impact."[98]

71. We have also heard evidence of the success of the partnership approach. Simon Quin described to us the positive impact of such schemes on licensees: "I think we are seeing much more responsible retailing taking place and a much greater willingness to engage with the police and the local authority on a non-confrontation basis".[99]

72. We have also been impressed by the success of an initiative led by the retail sector, under the umbrella organisation the Retail of Alcohol Standards Group, to work with local authorities to tackle underage drinking through the introduction of Community Alcohol Partnerships.[100] Piloted in St Neots in Cambridgeshire the scheme sought not just to prevent sales by retailers to underage drinkers but also to understand what led to underage drinking and where that drinking took place. It involved parents, the police, healthcare professionals and schools working together to tackle the problem. This integrated approach was hugely successful and Community Alcohol Partnerships are now being rolled out in Cambridgeshire, Kent, North Yorkshire and the Isle of Wight, as well as the cities of Reading and Bath.[101]

73. Another successful scheme developed by the retail sector in conjunction with local authorities and the police is the "Challenge 21" protocol, whereby those customers who are purchasing alcohol and look under 21 are asked to provide proof that they are over 18. Chief Inspector Adrian Studd of the Association of Chief Police Officers told us "we would encourage Challenge 21. Those sorts of schemes I think are probably as effective as trying to alter the drinking age".[102]

74. The development of partnership working is extremely important part of ensuring that the licensing objectives contained in the Licensing Act are achieved. We welcome the efforts made by all involved to develop and maintain successful partnerships and recommend that the Government should continue to promote partnership working as the most effective method to deal with licensing related issues.

PROBLEM PREMISES

75. One of the benefits of the current licensing system is the ability to tailor the terms of the licence to the premises in question. Under the previous liquor licensing regime licences were renewed every three years with limited opportunity to intervene in advance of the renewal date. If, at the time of renewal, a premises was felt to be causing a problem, then magistrates had the choice of renewing the licence, perhaps with non-legally enforceable undertakings attached to it, or revoking it. Under the Licensing Act it is possible for the licensing authority to impose conditions at the time of granting the licence, or for an interested party or relevant authority to trigger a review of a licence at the time that the problem occurs, which in turn might lead to the introduction of new conditions on a licence.[103]

76. With the exception of certain mandatory conditions, the current licensing regime is designed to allow conditions to be imposed on a case-by-case basis, depending on the issues and problems of a particular case. Examples of the types of conditions which a licensing authority might introduce to a premises licence for a bar include the provision of doorstaff or the installation of CCTV cameras.[104] Action can also be taken swiftly to shut down a premises that breaches those conditions.[105]

77. However we have also heard of instances where licensing authorities have imposed blanket requirements on a number of premises, contrary to the bespoke principle promoted by the Licensing Act. This seems especially to be the case in the retail alcohol trade, where problems with underage alcohol purchasing or alcohol-related anti-social behaviour has led licensing authorities to seek a solution through the imposition of blanket licensing conditions. James Lowman, Chief Executive of the Association of Convenience Stores said that not only was this contrary to the Act, but it failed to take account of the facts: "If one store in a town has certain problems it does not mean to say that all the stores in towns have the same problems and should be treated in the same way."[106] Such an approach can also have unintended consequences, for instance a decision to ban the sale of high strength beer and cider in Ealing, in order to prevent their sale to homeless people, led to shops in the area being unable to stock most premium ciders and beers.[107]

78. A final issue highlighted by the convenience store sector was the inclusion by some local authorities in the licensing conditions they imposed on retailers matters which were in fact related to other legislation, such as the Food Safety or Health and Safety Act. Mr Jeremy Beadles, Chief Executive of The Wine and Spirit Trade Association, explained to us why he believed this unreasonably increased the burdens on the retailer:

    "I think we would like DCMS to look at whether there are some things that could be ruled out as not really appropriate, including requests for wiring maps as part of the licence application or things under the Food Safety Act and things like that. The problem with including that stuff is it is covered in other regulations already, but also if you include it in a licence application and someone has a problem with something that has gone past its sell-by-date then theoretically they could lose their licence for it. That is not what the licence was for in the first place."[108]

79. We agree that it is not appropriate for issues which should properly be regulated by other legislation to be included as licensing conditions on retailers' premises licences. To devastate a shopkeeper's livelihood by revoking their licence to sell alcohol due to the presence of an out of date food item in their store is in our view completely disproportionate. We recommend that the Section 182 guidance should be amended to make this clear.

DRINKS PROMOTIONS

80. While the vast majority of customers drink responsibly, the consumption of alcohol plays a key factor in fuelling night-time disorder amongst the minority. The Police Federation of England and Wales described Britain's drinking culture to us as so endemic that excessive consumption was seen as "laudable" and suggested that the best way of tackling this was through the suppliers rather than the drinkers:

81. On a licensed premises it is illegal to serve a drunk person.[110] Although quantifying what constitutes "drunk" is extremely difficult, licensees are experienced at handling such issues.[111] Issues such as customers "pre-loading", drinking alcohol purchased from the off-trade[112] before heading out for the evening, and the fact that many will move between licensed premises during an evening means it is not always easy for the police to judge where the problem lies. Indeed the actual disturbance often takes place outside licensed premises.[113]

82. The BBPA explained the difficulty that it faced in trying to regulate drinks promotions as it had found that its actions fell foul of competition law:

    "The British Beer and Pub Association three years ago introduced promotions policy which encouraged all its members—which is about 55%-60% of the total pubs' market in the UK—to debar certain forms of promotion, particularly either speed drinking, i.e. cheap drinks until England score or something like that […]. Or alternatively quantity—£5 and all you can drink, or inviting women in free to encourage consumption [...] in November last year I specifically said that we could not maintain that promotions policy without assistance from Government because it was being deemed to be in breach of competition law. The industry in general, the broad body of the church, would like those policies to be maintained, but we have been clearly advised by our lawyers that we cannot continue to do that because it would be deemed to be anti-competitive".

83. We accept that the vast majority of people who take advantage of drinks promotions such as happy hours and supermarket price deals drink responsibly. The banning of all such promotions seems to us to be disproportionate. Nevertheless if the evidence we have received is true there is clearly a problem which needs to be addressed. It seems absurd that competition law can actually prevent a trade association from attempting to do so through giving its licensees guidelines as to the kind of responsible promotions that should be encouraged. We recommend that the Government should address this problem, if necessary through legislation, as soon as possible.



76   "Licensing Bill launched", Department for Culture, Media and Sport press release, 15 November 2002 Back

77   Department for Culture, Media and Sport, Evaluation of the impact of the Licensing Act 2003, March 2008, p39 Back

78   Ev 65 Back

79   Ev 130 ff. Back

80   Ev 66 Back

81   Evaluation of the impact of the Licensing Act 2003, March 2008, p13 Back

82   Ev 140 Back

83   Ev 136 Back

84   Q34 Back

85   Ev 16, 125  Back

86   Ev 16 Back

87   Q305 Back

88   Ev 125 Back

89   Ev 125 ff. Back

90   Ibid. Back

91   Q59 Back

92   Ibid. Back

93   Ev 136 Back

94   Section 182 guidance, paragraph 1.20-1.22 Back

95   Ev 77, Q204 Back

96   Q204 Back

97   Q11 Back

98   Evaluation of the impact of the Licensing Act 2003, p40 Back

99   Q11 Back

100   Q169 [Mr Beadles] Back

101   Q169 Back

102   Q77 Back

103   Section 182 Guidance, Chapter 10 Back

104   Ev 72 Back

105   Q1 Back

106   Q175 Back

107   Ibid. Back

108   Q170 Back

109   Ev 16 Back

110   Q183 Back

111   Q191 Back

112   "Off trade" premises are those where the alcohol purchased is consumed off the premises, such as off-licences and supermarkets. Back

113   Ev 16 Back


 
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