Hospitality sector launches bitter attack on government's licensing changes

The government’s proposed changes to the Licensing Act are "unnecessary, unjust and unaffordable”, and represent an unprecedented threat to responsible businesses, representatives of Britain's hospitality and leisure sector have claimed.

The comments by Nick Bish of the Association of Licensed Multiple Retailers came as a group of trade associations in the sector issued a joint submission to the Home Office’s consultation.

Alongside the ALMR, the group includes the British Beer & Pub Association, the British Institute of Innkeeping, the British Hospitality Association and the Federation of Licensed Victuallers Associations.

The joint submission was backed by an opinion from a leading QC, Gerard Gouriet of Francis Taylor Building, who the group said has raised important and fundamental issues relating to the legitimacy and legality of the proposed changes to the Licensing Act 2003.

The ALMR’s Bish said: “We are all agreed collectively that [the proposed changes] are unnecessary, unjust and unaffordable and the joint submission puts this case forensically and forcefully. We just hope ministers are listening and prepared to act to prevent severe unintended consequences for our industry.”

The group said in its submission that:

• It supported the introduction of a prohibition of below-cost selling as a mechanism for promoting “fair competition” which would promote responsible retailing. “The cost price in question should represent as closely as possible the real cost incurred by a retailer to sell for the goods”
• It welcomed a government review of alcohol taxation and pricing which would redress the imbalance between prices paid by customers for alcoholic drinks in hospitality venues and shops. The group called for a more radical look at taxation “to include amongst other things a VAT differential; a rebalancing of duty between higher alcoholic strength drinks and lower strength drinks, such as beer; and duty refunds for hospitality venues”
• The government should introduce a level-playing field between leisure and hospitality businesses and shops and supermarkets by either (a) the introduction of agreed and government-backed voluntary codes of practice for both the on and off-trades, removing the mandatory conditions currently imposed on the on-trade, or (b) the introduction of mandatory conditions for the sale and promotion of alcohol in the off-trade
• There should be “more effective and consistent” use of the powers that already exist to revoke and refuse licenses
• An emphasis should rest on the development of local partnerships and local solutions in the management of public spaces
• There should be increased support for the development of improved compliance on the prevention of under-aged sales through the Local Better Regulation Office
• It would be welcome if there were recognition that the hospitality trade is at the front line of enforcement against under-aged sales with a greater use of training orders where transgression is without intent
• There should be an in-depth examination of policing and enforcement in the late-night economy, “building on proven success and tackling individual anti-social behaviour vigorously taking a wholly inclusive approach to the management of town centres”
• Regulations under licensing that have not yet been implemented should be reviewed, in particular those relating to the introduction of the Mandatory Code which should be revisited in the light of the coalition’s policy objectives
• Any review of the legislation should be carried out under the Licensing Act itself rather than piecemeal through other Parliamentary Bills.

BBPA chief executive Brigid Simmonds said: “This submission brings together a coalition across the hospitality sector and a unified voice on the critical issues that concern the industry about the Government’s current proposals. In addition, we considered it vital to invest in a legal opinion from an eminent QC to provide an authoritative view on the fundamental legal issues that arise from these proposals.

“This joint submission, backed by a solid legal opinion, provides a firm foundation for taking forward our case with government, MPs and other key stakeholders.”