UK Hospitality chair Kate Nicholls reveals generational progress on licensing and redoubled efforts to reduce venues’ tax burden.

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Having been part of the group that first helped shape the Licensing Act 2003 more than two decades ago, it's frustrating that a landmark piece of legislation that focused on people and the social, cultural and economic importance of hospitality to our communities has moved so far, in some aspects, from its original intention.

So, where am I going with this? I can assure you I'm not just using these pages to reminisce. I spoke of a 'licensing sprint' in my last column, which was about to be reported to the chancellor and deputy prime minister. We've now seen the results of that work, with recommendations which I believe recommendations which, I believe, represent a watershed moment for our sector.

Seven weeks with licence to make policy and fast-track creative ideas allowed a working group, consisting of UK Hospitality and other experts across the sector, to put forward 10 proposals that can make a difference to businesses, all of which the government has committed to implementing

First and foremost, the introduction of a new National Licensing Policy Framework is a game changer. For too long, venues have been subject to a postcode lottery of licensing decisions, where interpretations of the law vary wildly from one local authority to the next. This inconsistency is unacceptable. A new framework will provide clear, consistent direction to all local authorities, allowing the system to be rebalanced towards communities and culture, ensuring that decisions are made with a view to promoting growth, not simply managing perceived risk.

Equally transformative will be a one-time licensing condition ‘amnesty’, which will provide a clean slate and allow businesses to modernise their licences to reflect how they currently operate, not how they did in 2005. The ‘computer says no’ responses I outlined at the beginning of this column will become a relic of the past. Venues will no longer be shackled by archaic conditions imposed decades ago.

Removing barriers

Beyond those two significant changes, we also addressed even more practical, day-to-day frustrations that impact a bar’s ability to be agile and creative. The allowance for temporary event notices (TENs) will be increased to give businesses more flexibility to take advantage of national events and local celebrations.

The commitment to removing regulatory barriers to using outdoor space – changing from a two-year maximum policy to a two-year minimum – will finally allow venues to properly embrace and invest in al fresco hospitality.

Finally, concrete steps towards removing the costly and antiquated requirement to advertise in a local newspaper in a long-overdue step into the 21st century.

There’s no doubt that this is the most significant liberalisation of licensing laws in a generation – cutting red tape, reducing costs and empowering businesses to innovate. I was clear that I wanted this process to deliver reform, not just minor tweaks or cosmetic adjustments. I believe we have done that.

However, I am not naïve. This will not be a silver bullet for all the challenges our sector faces. The crushing burden of business rates, punitive employment costs, volatile energy prices and the increasing cost of food and drink remain priorities. This must be the start, not the end, of the government’s support.

We are continuing to wage our #TaxedOut campaign – where we are stressing the absolute need for urgent action from the government to reverse the impact of the devastating tax rises they inflicted upon hospitality at the Budget last year.

I have written in these pages about the impact changes to employer National Insurance Contributions, particularly the lowering of the threshold, have had, particularly on jobs. As I write this at the end of August, almost 89,000 hospitality jobs have been lost since the Budget. That’s more than half of all the jobs lost across the economy.

One in 25 jobs in the sector have been lost – representing 4.1% of all jobs in hospitality. That percentage of job losses is seven times larger than the rate of the wider UK economy. It’s clear that we have been the hardest hit by the government’s changes and need urgent action.

Three changes can help reverse the damage that has been done: lowering business rates, fixing NICs and cutting VAT. We’ve been making this argument to government at every opportunity, and we’re asking all hospitality businesses to get involved too. Whether it’s writing to your MP or supporting on social media, every voice counts. Let’s make hospitality’s voice impossible to ignore.