My Lords, the regulations we are considering today were laid in draft before this House on 8 June. If approved and made, they will extend the
temporary pavement licence provisions for 12 months to 30 September 2022 and will come into effect the day after they are made.
The temporary pavement licence provisions create a faster, cheaper and more streamlined consenting regime for the placement of removeable furniture, including tables and chairs, on pavements outside premises such as cafes, bars, restaurants and pubs. These measures have been popular and very successful in supporting businesses, making it easier for pubs, restaurants and cafes to facilitate al fresco dining with outside seating. It is vital that we continue to support the hospitality sector by extending these provisions for 12 months, as it has been one of the hardest hit as a result of the coronavirus.
The sole purpose of the regulations is to change the four references to the expiry date in the legislation from 30 September 2021 to 30 September 2022. The regulations do not change any other part of the pavement licence provisions, so the process for applying for a licence during the extended period will not change. Subject to the regulations being approved and made, businesses will be able to apply for a licence under the process set out in the pavement licence provisions in the Business and Planning Act for the extended period until 30 September 2022.
The regulations do not automatically extend licences that have been granted under the current provisions, so businesses will need to apply for a new licence if they wish to have one in place during the extended period. Local authorities are encouraged by guidance to take a pragmatic approach in applying the extended provisions, so that it is as convenient as possible for businesses to apply for a licence during the extended period. As the process for applying for a licence under the extended period will remain unchanged, I will briefly remind noble Lords of that process.
All licences are subject to a 10-working-day determination period, including a five-working day public consultation period, excluding public holidays, starting the day after the application is sent electronically to the authority. If the local authority does not determine the application before the end of the determination period, the licence will be deemed to have been granted for a year—or, if sooner, until 30 September 2022—and the business can place the proposed furniture, such as tables and chairs, within the area set out in the application for the purpose or purposes proposed.
Licence application fees will be set locally but are capped at a maximum of £100. Again, these fees are unchanged from what they are for licence applications under the current temporary provisions in the Business and Planning Act 2020. All licences will be subject to a national no-obstruction condition and smoke-free seating condition as well as any local conditions set by local authorities.
The grant of a pavement licence only covers the placing of furniture on the highway. A pavement licence does not negate the need to obtain approvals under other regulatory frameworks such as alcohol licensing. The Government have also laid a separate statutory instrument to extend the temporary alcohol licensing amendments.
Once a licence is granted, or deemed to be granted, the applicant will also benefit from deemed planning permission to use the highway land for anything done
pursuant to the licence while the licence is valid—for example, using furniture to sell or serve food or drink supplied from, or in connection with relevant use of, premises.
The pavement licence regime in the Business and Planning Act did not replace the regime in Part VIIA of the Highways Act 1980; rather, it sat alongside it. This remains the case during the period of validity of the 2020 Act provisions as extended by this statutory instrument. Applicants may apply for a licence under Part VIIA as an alternative if they wish to do so for any reason.
These regulations will enable food and drink hospitality businesses to continue to obtain a licence to place furniture on the highway outside their premises quickly and cheaply. As I previously stated, this extension is considered necessary and vital, as it will provide businesses with much needed certainty to help them to recover economically and will support them in planning for the extended period. To explain just how hard the sector has been hit, evidence from trade organisations and other sources has indicated significant financial losses and wider economic pressures faced by the hospitality industry. The Office for National Statistics reported in July that more than half of businesses in the accommodation and food services industry had experienced a fall in turnover, compared with normal expectations for this time of year—more than any other industry.
I firmly believe these regulations will bring essential economic support out of the pandemic for many food and drink businesses, by enabling extended outdoor capacity for serving food and drink. To support local authorities and businesses with the implementation of the regulations, we will publish an updated version of the pavement licence guidance when the regulations are made. If these regulations are not introduced, there is a real risk that we will undermine the steps that food and drink hospitality businesses have taken to recover from the economic impacts they have suffered as a result of coronavirus.
All of us in government have enjoyed pubs, cafes and restaurants being open again, following coronavirus lockdown restrictions. The temporary pavement licence measures are just some of several measures that the Government have introduced to support hospitality businesses to reopen safely, enabling businesses across the country to serve their local communities. Since introducing a simplified route for pubs, restaurants and cafes to obtain a temporary pavement licence, we have heard of many examples of local businesses being able to increase their outdoor capacity quickly and at low costs. The draft regulations that we are debating today will allow al fresco dining and drinking to remain a reality for these businesses and provide much needed certainty for another year. I commend this instrument to the Committee, and I beg to move.
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