Controlling Interest

Driving licences

interviews, controlling interest, november 2006, COMMENTS

In the run up to 24 November 2005 there was a tremendous amount of trepidation about the potential impact of the new licensing legislation. The misconception that reform would see the nation engaging in regular round-the-clock drinking sessions was widespread. Elements of the national press predicted Armageddon on the high street. Hysteria reached fever pitch.

Despite the media’s speculation, operators were aware that the new Act would not mean unchecked, 24-hour drinking sessions and chaos on the streets. As London bar operator Jonathan Downey was quoted as saying at the time: “24-hour licences will be rare. They have almost no commercial value to a proper operator; those 24-hour venues that do pop up will have about as much atmosphere and custom as a 24-hour Sainsbury’s at 4am on a Tuesday morning.”

But whilst common sense prevented operators from buying into the Mail’s vision of apocalypse, they were nevertheless cautious as to what the impact of such revolutionary new legislation would be. Extending the regulatory standards under which the late licensed trade has for so long operated across the whole industry was widely welcomed. Bringing pubs under the remit of the local authority also seemed a reasonable measure. The introduction of standard fee levels was good news. But the impact of extended hours - which less well informed commentators thought would effectively put the final nail in the coffin of the club sector’s historical de facto USP - was hard to predict.

And compounding concerns was the newly hard line approach of the Home Office which, in response to police and media predictions of a rise in crime and disorder following implementation, was working to what felt like a persecutory, anti-trade agenda: one that would ultimately result in drafting of the Violent Crime Reduction Bill, and with it the prospect of Alcohol Disorder Zones. After negotiating a stream of new legislation in the early 00s and with the practicalities and politics of transition looming, the thought of yet more hurdles on the horizon was generating few smiles.

Twelve months after the second appointed day it is clear that, rather than revolutionising the night-time economy, the Act has had a much more subtle impact. Transition was a relatively smooth - if frenzied - process, something that Minister for Culture and Tourism Shaun Woodward attributes to “local councils, licensees, the police - in fact everyone involved in the implementation of the Licensing Act.”

Speaking to NIGHT in the weeks preceding the Act’s first anniversary, the man responsible for representing the licensed trade’s interests in Whitehall was positive about the contributions made by all parties to making the Act work.

“I’d like to take this opportunity to thank everyone for their hard work,” he says. “If everyone, including local residents, works together we can have a safe, diverse, exciting night time economy that we all benefit from. It is often forgotten that the Government’s proposal to move alcohol licensing from the courts to local authorities was initially opposed by some police and some in the trade. I think one of the things we do know from the first year of operations is that the Government got that right.”

Many in the trade would, of course, beg to differ with an interpretation that attributes the success of the Act to Government. In fact, what Westminster Council’s Audrey Lewis in this issue describes as “the poorly drafted legislation and self-contradictory Guidance”, compounded by Government’s insistence that councils should interpret the Act in their own way, has been a persistent source of frustration for both councils and operators.

“It is not for central government to dictate to licensing authorities how to interpret the legislation and disputes about decisions and policies of licensing authorities are ultimately for the courts,” reiterates Mr Woodward.

But whilst differences of approach and interpretation look set to remain fixtures on the new licensing landscape, some contentious issues may soon be addressed. After going on record in July as saying Government would consider implementing a regulatory reform order once it has assessed the performance of the legislation, Mr Woodward confirmed that changes may be on the way.

“We plan to publish a simplification plan in November as part of the Department’s commitment to the cross-government Better Regulation initiative which will list possible changes which we want to explore,” he confirms.

As well as removing some of the grey areas, this simplification plan is expected to consider elements of the legislation that appear not to be working - such as the need for operators to advertise every licence application and variation in their local paper. This is deemed even by the most notoriously hard-line local authority, Westminster Council, to be excessive - and is an issue BEDA has been campaigning on for some time.

“This is one of several areas we have said we will look at,” says Shaun. “However, we will have to give careful consideration to how we can minimise burdens on businesses while ensuring that interested parties are made aware of applications that may affect them.”

Whatever the outcome of the simplification will be, it will not reverse the impact of reform - which has already begun to affect late-night drinking culture in the UK. Statistics from on trade research consultancy CGA show a 10% increase in the number of venues trading after 11pm since November 2005, with the total number of licensed venues targeting the 18-35 year old market rising past 9,000 in the past year - suggesting that competition isn’t affecting operator confidence.

And whilst some late night venues have struggled to remain competitive, many have reported a continued willingness on the part of their customers to pay for a sufficiently differentiated offer. Destination nightclubs demonstrating a strong entertainment policy, level of investment in their premises and a secure, safe environment have continued to trade strongly - something reflected in an uplift in average Saturday night door charge from £5.50 in 2005 to £6.00 in 2006.

This change in trading patterns is of course being matched by changing consumer habits. Research carried out jointly by CGA and Galaxy Radio found that a staggering 52% of 18-35 year olds now leave the house for a typical night out after 10pm - compared to 5% in February 2005. And far from unleashing unrestrained boozeaggeden, a six week crackdown on alcohol related disorder following the second appointed day resulted in a reduction in violent crime of 11%, rather than an escalation - a far cry from the predictions outlined by sections of the press.

At the time the results were announced, Culture Secretary Tessa Jowell attributed the reduction to the impact of the new laws: “Thanks to the new licensing laws, the police and local authorities have joined forces to use tougher powers to deal with the problem at the source.” But operators have also played an undeniable role through the continual raising of standards. As Shaun Woodward accepts, “licensees are more aware of their responsibilities” than ever before.

Most recent evidence of this comes in the results of the recent AMEC, challenging the traditional misperception that clubs are the least responsible arm of the licensed trade. It showed that only 12% of targeted clubs failed a test purchase - compared to 30% of bars and 31% of pubs. Two of the largest late night operators, Regent Inns and Luminar Leisure, registered zero failures.

“I would like to begin saying that 12% is still too high,” reflects Shaun on the results. “I’d like to see results showing that no clubs had been caught selling to under 18’s. However, the majority of night clubs do take their responsibilities seriously and tend to employ security staff who act as an important barrier to under age drinkers and can give bar staff greater confidence to refuse sales.” In a clear indication to the trade as to where police resources will be allocated next, he continues: “I think there is also still room to improve in terms of sales to drunks. Clubs are, rightly, very good at preventing those who are drunk from entering, but I am not so sure they always apply sufficient rigour in not selling to those who are on the premises and clearly the worse for wear.”

That work remains to be done is undeniable. But if anything, the last 12 months have shown the progress industry has made in modernising its perspective and practice. This year’s Sminoff Shine BEDA Award was the best-subscribed yet; each entry demonstrating a considered application of social responsibility in action. The winning entry, Walkabout in Bouremouth, provides a stand-out example of how good will, robust operational practice and effective partnership working can turn a venue on the verge of losing its licence into the safest club in town – with extended hours to boot. Best Bar None schemes up and down the country have uncovered and encouraged similar practice. Social responsibilities have been largely embraced by the late night entertainment industry as an integral aspect of business: a real step forward, and one that bodes well not just for customers but for the long term health of the late night scene.

So here we stand, 12 months on - having survived the biggest transition for 40 years and come out the other side with much to be both proud of and positive about. At this point, many operators would relish the opportunity to take stock. Instead we are faced with the prospect of more upheaval in 2007 in the shape of the smoking ban and ADZs, which loom heavy on the horizon.

“I appreciate that the industry is going through challenging times,” says Woodward, speaking directly to NIGHT readers. “But you are a strong industry, you’ve proved you can adapt to change and I know you will adapt to future changes. As well as being responsible for licensing, as Tourism Minister, I champion the tourism and hospitality industry across Whitehall to ensure that the industry has a voice and is able to contribute to policy developments in other areas. While I cannot guarantee that the industry’s views will override other policy considerations, I can assure your readers that industry representatives are able to make their case.”

This reassurance is appreciated, however Woodward has some way to go to reassure industry as to the effectiveness of his department’s lobbying abilities: its recent track record suggests a less than convincing approach. When industry looked to Woodward’s predecessor James Purnell to suggest to the Department of Health that certain venues should be exempted from the smoking ban, and that delayed implementation was necessary to allow operators to make necessary alterations to their venues, the DCMS ignored its requests, reiterating the DoH’s position in official statements rather than forwarding its own case.

The DCMS’s record on ADZs was similarly disappointing. Though industry sought the department’s involvement in policy making in order to convey the probable extent of the legislation’s massive impact to law makers, the DCMS were in practice so sidelined that on the morning a joint consultation paper was published on the subject, DCMS officials had not even seen it. Given that part of the DCMS’s brief is to represent industry views in Whitehall, when it comes to the crunch it too often feels that the DCMS sides with the traditionally regulatory departments all too easily.

Time will tell if these concerns will continue to be valid. In the meantime, the business of entertaining the nation continues in bars and clubs the length of the country. And whilst it may not be ministers we’re hosting (Mr Woodward disappointingly confessed that “I don’t really get the opportunity to [visit clubs]. Most times I get the chance to have a pint is when I am in one of the Labour Clubs in my constituency”), industry’s collective drive to deliver ever more diverse, first rate entertainment to a broad customer base remains evident. And a distinct cause for celebration.

Words: Alex Eyre

Photograph: Jim Ellam

From: November 2006 Issue

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