Licensing Act 2003 Framework
Four licensable activities: (1) sale/supply of alcohol; (2) late night refreshment (hot food/drink 11pm–5am); (3) regulated entertainment (live music; recorded music; theatre; cinema; indoor sport; boxing/wrestling; dance). Premises licence: granted by local licensing authority (district/borough council); tied to premises not the person; names DPS for alcohol licences. DPS: individual holding personal licence; named in premises licence; must consent to appointment. Personal licence: granted to individual by licensing authority; requires licensing qualification (APLH or equivalent). Licensing objectives: prevention of crime/disorder; public safety; prevention of public nuisance; protection of children from harm.
Lease Obligations and the Premises Licence
Standard commercial lease covenants for licensed premises: obligation to maintain premises licence throughout term; ensure valid DPS in post at all times; not materially vary licence (e.g., extend hours; add activities) without landlord written consent — changes affect the premises and planning position; notify landlord immediately on receipt of review application or suspension/revocation notice; cooperate with transfer of licence on assignment. Landlord step-in rights: some leases give landlord right to apply for new premises licence if tenant fails to maintain existing one — essential protection for landlord's investment value. Failure to maintain licence = breach of covenant; potential forfeiture.
Licence Review and Revocation
Review applications: any responsible authority (police; fire; environmental health; planning; trading standards; Home Office) or local community member can apply to licensing authority for review. Grounds: crime/disorder; public safety failures; public nuisance; DBS concerns; failure to promote licensing objectives. Outcomes: modify conditions; exclude licensable activities from licence; remove DPS; suspend (up to 3 months); revoke. Revocation: premises cannot be used for licensed activities; tenant may be unable to trade. Landlord response: may forfeit for breach of covenant to maintain licence (s.146 LPA 1925 notice required); consider rent abatement vs forfeiture vs restructuring. Licence insurance: specialist licensed premises insurance covering loss of licence — landlords should encourage tenants to maintain.
Assignment and Transfer of Premises Licence
Licence does not transfer automatically with lease: tied to the licence holder not the lease; formal transfer required. Transfer application (ss.33–34 LA 2003): incoming licence holder applies to licensing authority using prescribed form LA3 + fee; police may object on crime/disorder grounds; provisional transfer effective on receipt of application. DPS change: incoming tenant must notify licensing authority of new DPS using form LA4 (or include with transfer application). Coordination with lease assignment: lease assignment and licence transfer should complete simultaneously — incoming tenant should not take possession without licence in their name or provisional transfer in place. Landlord holding the licence: where landlord holds the premises licence and grants tenant permission to use it, landlord's cooperation with any future transfer is critical.
Scotland, Wales and the Pubs Code
Scotland: Licensing (Scotland) Act 2005; Licensing Boards (local authority); Premises Manager (equivalent to DPS); review and revocation on similar grounds. Minimum unit pricing: Scotland 50p/unit (since 2018); Wales 50p/unit (since 2020); affects commercial economics of licensed premises in both nations. Pubs Code 2016 (England/Wales): applies to pub-owning businesses with 500+ tied pubs; qualifying tied pub tenants have MRO (Market Rent Only) right — free-of-tie tenancy at open market rent; trigger events: rent review; renewal; significant cost increases. Pubs Code Adjudicator: independent regulator; hears disputes between tied pub tenants and pub-owning businesses. Northern Ireland: Licensing (NI) Orders; separate regime; similar licensing objectives.