Scotland unveils local governance reforms with licensing powers set for community level

The Scottish Government has published proposals for a major overhaul of local governance that could replace Scotland’s 32 councils with a new two-tier system of regional and community authorities. The reforms are intended to redistribute decision-making powers across the public sector and strengthen local control over services and civic functions.

Under the plans, between six and ten larger regional authorities would assume responsibility for strategic functions such as education, economic development and major planning matters. Alongside them, between 120 and 160 new community authorities would be established to oversee decisions that directly affect local areas. Among the functions specifically identified for these bodies are local planning, the historic environment and licensing.

For the licensing sector, the proposals signal a potentially significant shift in how local licensing powers are exercised. While the Government has not announced changes to individual licensing regimes, licence categories or statutory requirements, responsibility for determining local licensing applications could move from existing councils to newly created community authorities.

If implemented, the reforms could affect the administration of a range of council-controlled licensing functions, including alcohol licensing, civic licensing, street trading consents, public entertainment licences and other permissions currently managed by local authorities. Decision-making would be brought closer to communities, with local bodies expected to play a greater role in shaping outcomes within their areas.

The proposals also suggest that some responsibilities currently held by Scotland’s public bodies could be transferred to either regional or community authorities, although no licensing functions have yet been identified for transfer.

Deputy First Minister Jenny Gilruth described the document as a starting point for discussion rather than a final blueprint, emphasising the need to achieve the right balance between national, regional and community decision-making. The Government has indicated that further debate and consultation will take place before any final model is adopted.