Government to “overhaul licensing rules” to unlock hospitality

The Government has announced sweeping reforms to planning and licensing laws, aiming to reduce bureaucratic barriers and fast-track the revival of town centres with a wave of new cafés, bars, and music venues.

A National Licensing Policy Framework

Central to the initiative is the introduction of a new National Licensing Policy Framework, designed to streamline the process for securing licences and planning permissions. This will eliminate the inconsistent patchwork of local rules that currently slow down or discourage entrepreneurs from repurposing empty retail units into vibrant hospitality hubs.

Agent of Change

The reforms also adopt the Agent of Change principle, ensuring that new developments near existing venues are responsible for noise mitigation measures. This shift protects long-established pubs, clubs, and music venues from being undermined by residential developments, safeguarding the cultural heartbeat of urban nightlife.

Hospitality zones boosting alfresco dining and street events

Under the new framework, dedicated **hospitality zones** will offer fast-tracked permissions for alfresco dining, street parties and extended operating hours, injecting vitality and footfall back into town centres and encouraging community engagement.

High Street Rental Auction Scheme

The transformation builds on the existing High Street Rental Auction Scheme, empowering local councils to auction off leases for commercial properties that have stood empty for over a year. This approach aims to turn unused premises into lively social spaces that create jobs and foster social connection.

The changes form part of the broader Small Business Plan, which promises to deliver on the Government’s “Plan for Change” by supporting the UK’s 5.5 million SMEs. With these businesses responsible for 60% of private sector jobs and £2.8 trillion in turnover, officials say reducing regulatory overheads by 25% will boost entrepreneurship and community wellbeing.

Business and Trade Secretary Jonathan Reynolds said:

“This Government has a plan to replace shuttered up shops with vibrant places to socialise turning them into thriving cafés or busy bars, which supports local jobs and gives people a place to get together and catch up over a beer or a coffee.

“Red tape has stood in the way of people’s business ideas for too long. Today we’re slashing those barriers to giving small business owners the freedom to flourish.

“From faster café openings to easier alfresco dining, our Plan for Change will put the buzz back into our town centres and money back into the pockets of local entrepreneurs, because when small businesses thrive, communities come alive.”

Chancellor of the Exchequer Rachel Reeves said:

“Whether it’s cheering on the Lionesses or catching up with friends, our pubs and bars are at the heart of British life.

“For too long, they’ve been stifled by clunky, outdated rules. We’re binning them – to protect pavement pints, al fresco dining and street parties – not just for the summer, but all year round.

“Through our Plan for Change, we’re backing small businesses and bringing good times back to the high street.”

Craig Beaumont, Executive Director at the Federation of Small Businesses, said:

“With the Women’s Euros final bringing communities together to watch and enjoy in our pubs, bars, cafes and community venues tonight, this move is a welcome win for small firms.

By cutting red tape this enables small business to serve more customers outdoors. Let’s hope this is just the kick-off to a bold, long-term small business strategy.”

All these plans, subject to an initial Call for Evidence in due course, will be delivered as soon as possible as part of the Government’s commitment to reduce the administrative costs of regulation by at least 25%.