Minister for Security urged to “urgently” implement business licensing

The security industry has written to Home Secretary & Minister for Security, urging them to “urgently” implement business licensing within the private security sector.

This appeal follows the recent announcement by the Minister for Security at the Home Office Security and Policing Conference, where he confirmed the Security Industry Authority (SIA) now falls entirely within his ministerial portfolio. Additionally, the Minister acknowledged the critical opportunity ahead, as highlighted in MR8 of the Manchester Arena Inquiry, where business licensing was identified as a key reform.

In the letter, signed by 11 trade organisations representing private security companies and over 50 executives from the largest security firms in the UK, the sector sought a meeting with the Government expressing “…the urgent need for the implementation of business licensing within the private security sector. This step is critical for addressing longstanding challenges within the industry, and has widespread support from reputable operators. As one of the key recommendations from the Manchester Arena Inquiry (MR8), business licensing would establish a minimum standard for security businesses, promote public confidence, and enhance oversight, helping to ensure the highest levels of safety and professionalism at a pivotal moment for the sector.”

The letter emphasises the importance of this reform for public safety, economic integrity, and addressing exploitation within the industry.

• Urgent need for licensing: The letter highlights the critical need for business licensing in the private security sector to enhance safety and professionalism, as recommended by the Manchester Arena Inquiry. 
• Current regulatory gaps: It points out that the existing regulatory framework focuses on individual operatives rather than businesses, leaving significant risks unaddressed as private security roles expand. 
• Concerns over untraceable businesses: There are over 12,000 untraceable security supply businesses, which undermines public safety and facilitates exploitation. 
• Financial implications: The lack of business licensing results in an estimated £1 billion in annual losses to the government due to tax evasion and fraud within the sector. 
• Impact on public safety: The letter stresses that business licensing would help address accountability and standards, especially in light of Martyn’s Law and its implications for counter-terrorism. 
• Ineffectiveness of current schemes: The Approved Contractor Scheme is deemed inadequate, with only a small number of businesses participating, leading to discrepancies in standards and tax contributions. 
• Call for a dual licensing system: The proposal includes a dual system of business licensing and individual registration to improve regulatory oversight and compliance monitoring.