My Lords, these regulations, which were laid before the House on 11 September, contain measures that are intended to continue to cut unnecessary red tape in order to support the hospitality sector in light of the ongoing residual effects of the Covid-19 pandemic.
As your Lordships may be aware, the Licensing Act 2003 enables licences to be granted to sell alcohol for consumption on site, for consumption off site, or for both. In the event that a business obtains an on-sales only licence and subsequently wishes also to do off-sales, it can apply to its licensing authority for a variation that would add off-sales to its licence.
The Business and Planning Act 2020 included a temporary provision that meant holders of licences that covered only on-sales would automatically be entitled to make off-sales, removing the need for businesses to apply for a variation, thus saving them time and money. In practice, this has enabled pubs and restaurants that have only an on-sales licence to sell alcohol for takeaway, to operate alcohol delivery services and to extend their service outdoors. Specifically, the measures have enabled businesses to serve alcohol in the area covered by any pavement licence they had, facilitated by a parallel but independent easement to pavement licensing. This parallel easement created a temporary streamlined process to apply for and have granted a pavement licence. The Levelling-up and Regeneration Bill, currently completing its passage through Parliament, will make the changes to pavement licensing permanent.
The off-sales provision has benefited at least 38,000 licensed premises in England and Wales that previously did not have an off-sales licence, and, having previously been extended twice, it was due to expire on 30 September 2023. These new regulations extend this measure until 31 March 2025 to ensure that businesses will continue to benefit from these provisions for a further 18 months.
During this time, the Government will explore the creation of a unified pavement licence that includes the consumption and sale of alcohol in the outside pavement area. Work is already under way to establish how this will work in practice. We intend to have permanent arrangements in place that can take effect when the extension expires.
I am confident that extending the off-sales provision is the right course of action in order to provide vital ongoing support to the hospitality sector. Although the immediate Covid-19 crisis has passed, the residual effects continue to have an immense impact, especially for businesses in the hospitality sector. Many continue to face high levels of Covid-related debt, with some reporting in July that their debt repayments exceeded 100% of their turnover.
For the purposes of clarity, I note that another regulatory easement set out in the BPA relating to temporary event notices—TENs—will not be extended. The provision temporarily increased the annual number of TENs that a licensed premises user can have in respect of a premises from 15 to 20 per year and increased the maximum number of days on which temporary events may be held at such premises from 21 to 26 per year. We have decided not to extend this easement for the simple reason that the additional TENs provided for in the BPA have been underutilised and are no longer deemed necessary. As such, on 31 December 2023 that easement will lapse.
These measures will continue to benefit a wide range of businesses, including pubs, restaurants, wedding venues and small festivals. The hospitality industry needs our support, so I commend these regulations to the Committee and beg to move.