The Labour government is committed to streamlining the process for opening new high street venues, aiming to boost the British hospitality industry.
Chancellor Rachel Reeves has announced a new licensing framework as part of Labour's planning reforms, designed to expedite approvals for outdoor dining and "protect pavement pints", as reported by .
Plans have been unveiled for designated "hospitality zones" that will facilitate quicker permissions for outside dining, street festivities, and extended trading hours. The government is also considering measures to simplify the transformation of vacant shops into new establishments.
Developers will be required to soundproof new buildings near existing venues to safeguard them against noise complaints.
A call for evidence will accompany these proposals.
Business Secretary Jonathan Reynolds remarked: "Red tape has stood in the way of people's business ideas for too long".
He further commented: "This Government has a plan to replace shuttered up shops with vibrant places to socialise, turning them into thriving cafes or busy bars, which support local jobs and give people a place to get together and catch up over a beer or a coffee."
Reynolds reiterated: "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."
Hospitality stung by Reeves’ tax hikes
Reeves stated: "For too long, [businesses have] been stifled by clunky, outdated rules.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," she added.
This comes after a challenging time for º£½ÇÊÓƵ hospitality, with the British Beer and Pub Association (BBPA) predicting that one pub will shut down daily in 2025.
The BBPA forecasts that this year, 378 pubs across England, Wales and Scotland will close, resulting in over 5,600 job losses.
The industry body highlighted the significant burden of business rates – a tax on commercial properties – on the sector.
Pubs contribute 2.8 per cent of the total business rates bill but account for just 0.5 per cent of total business turnover, leading to an overpayment of approximately £500m.
The industry has been under severe strain since Rachel Reeves' Autumn Budget, which included a £20bn tax raid on businesses.
Since Reeves' increase in employers' national insurance contributions came into effect in April, the industry has lost 69,000 jobs – a stark contrast to the 18,000 roles created during the same period last year under the previous government.
Earlier this month, industry lobby group º£½ÇÊÓƵ Hospitality initiated a campaign to reverse the "unfair" tax burden on the sector, dubbed #TaxedOut.
"The 2024 Budget was a hammer blow to hospitality... businesses are reporting jobs being lost, hours cut, investment cancelled and [closures]," the group said.
Emma McClarkin, chief executive of the British Beer and Pub Association, expressed her approval for the new licensing framework, stating: "Red tape smothers pubs and wider hospitality which means communities and the economy miss out so, given pubs are struggling right now, it's vital these are implemented at pace."
However, McClarkin encouraged Labour to push for more extensive reform.
"These changes must go hand in hand with meaningful business rates reform, mitigating staggering employment costs, and a cut in beer duty so that pubs can thrive at the heart of the community."
