Government backs licensing reform and digital applications in response to small business red tape review

The Government has signalled potential changes for licensing authorities and licensed businesses after accepting almost all recommendations made by the Small Business Regulatory Taskforce, including proposals to digitise and standardise licence application processes across the public sector.

Published on 23 October 2026, the Government’s response sets out a programme of reforms designed to reduce the administrative costs of regulation for businesses by 25% during this Parliament while maintaining protections for consumers, workers, communities and the environment.

While the report covers regulation more broadly, a number of recommendations have direct relevance to licensing regulators, local authorities and licensed sectors including hospitality, taxis and private hire, gambling, street trading and other licensed activities.

A key proposal is the Government’s acceptance of recommendations to digitise and standardise licence applications, a move intended to reduce complexity and improve consistency for businesses operating across multiple areas. Businesses have long argued that licensing processes can vary significantly between authorities, requiring applicants to navigate different systems, forms and evidential requirements. The Government has agreed to take forward work in this area as part of its wider regulatory reform agenda.

The response also places significant emphasis on a new”Tell Government Once” approach, under which businesses would provide core information a single time rather than repeatedly submitting the same details to different public bodies. According to the Government, work will begin with departments, regulators and the Government Digital Service to explore options for a more joined-up approach to business interactions with government.

For licensing, the principle could ultimately support more integrated application and compliance processes, reducing duplication between licensing authorities, regulators and other government bodies. The proposal is linked to plans to explore a single business identifier, intended to support regulatory passporting and simplify interactions between businesses and regulators.

The Government has also endorsed recommendations aimed at improving the way regulation is designed and enforced. This includes ensuring that the impact on small and medium-sized enterprises is considered before introducing new laws or regulations. Such an approach could have implications for future licensing legislation, statutory guidance and local regulatory requirements, with increased focus on proportionality and administrative burden.

Further measures include creating clearer routes for businesses to report burdensome regulations, improving access to regulatory advice and support, and strengthening transparency around progress towards the Government’s regulatory burden reduction target.

The reforms may be of particular interest to delegates attending the Institute of Licensing National Training Conference 2026, where representatives from the Department for Business and Trade are scheduled to provide an update on the Government’s flagship digital licensing programme.

On Wednesday 18 November, the NTC programme includes “Licensify: The Future of Online Licensing Applications“, a session chaired by John Miley. Delegates will hear from Adam Fagg on progress with the Department for Business and Trade’s Licensify project, which is intended to provide a single trusted online gateway for licensing information and applications while connecting businesses with the appropriate licensing authority.

The session is expected to explore how the replacement of existing online licensing forms on GOV.UK could help simplify the application process for businesses while supporting local authority licensing systems. Attendees will also hear about current workstreams, future development plans and the potential benefits for applicants, licensing authorities and the wider regulatory landscape.

The inclusion of the Licensify update comes as the Government’s response highlights digitisation, simplification and standardisation as key themes in reducing regulatory burdens on businesses. Together, the Taskforce response and the Licensify programme provide a strong indication of the direction of travel for licensing administration across England and Wales.

For licensing authorities, the response does not introduce immediate legislative changes to existing licensing regimes. However, it provides a clear indication of the Government’s policy direction, with greater emphasis on digital services, streamlined business interactions, standardised processes and reducing unnecessary bureaucracy for regulated businesses.

The Government accepted all but one of the Taskforce’s recommendations and described the package as part of a broader commitment to make regulation simpler, more proportionate and easier for businesses to navigate.