UKHospitality calls for licensing reform in high street blueprint

UKHospitality has urged the Government to adopt the Licensing Reform Taskforce’s recommendations in full, warning that approval delays leave new UK bars, cafés and restaurants paying property costs before they can trade.

The call accompanies the trade body’s 33-point high street report, which covers licensing, planning, rents, business rates and skills. It comes as ministers develop a High Streets Strategy, with the licensing framework published so far remaining guidance rather than law.

What happened

The report, Placemaking: a blueprint for the high street, identifies licensing as the first major regulatory obstacle for many new hospitality businesses. Operators needing approval cannot begin trading while their applications remain unresolved, leaving them without sales to cover rent and other fixed costs.

UKHospitality wants a licensing system that gives greater weight to growth and provides more predictability for businesses committing money to premises. Its position is that restrictive local policies can discourage investment, not simply delay individual openings.

The report also seeks closer working between operators, licensing authorities and communities. The proposals were reported by Startups.co.uk.

Beyond licensing, the blueprint addresses six other areas. For planning, it proposes presumptive permission: applications meeting specified criteria would receive approval automatically. It also seeks faster processing routes for both major and minor applications.

On property costs, UKHospitality is calling for Upwards Only Rent Review legislation to support sustainable rents. It separately wants business rates appeals handled more quickly ahead of the 2026 revaluation.

Another recommendation concerns the Agent of Change principle, which is intended to protect established venues when new development takes place nearby. The trade body wants that protection to carry greater legal weight.

The background

The Government published its National Licensing Policy Framework in November 2025. Although that provides a national framework, its non-statutory status means it does not amount to a change in the law governing applications.

Ministers have also publicly supported strengthening the Agent of Change principle in licensing decisions. That gives part of the trade body’s agenda government backing, but does not establish that its full package will be adopted.

The wider High Streets Strategy remains in development. The Government has said it will include licensing reform, consultation on new planning policy and at least £150m of support. The source does not set out how that funding would be allocated to individual operators.

Regulatory reform sits alongside a separate dispute over the sector’s tax costs. UKHospitality says hospitality businesses pay business taxes equivalent to 82% of pre-tax profits, the highest proportion of any sector. The hospitality tax burden of 82p for every £1 of profit underpins its argument that changes to approval processes alone will not resolve operators’ financial pressures.

What people are saying

Allen Simpson, chief executive of UKHospitality, argues that hospitality businesses are central to successful places, but that regulatory burdens are limiting what the sector can contribute. He presents the report as a response to those restrictions alongside the cost pressures facing operators.

The trade body wants licensing and planning changes embedded in the Government’s high street work rather than treated separately. Its position is that businesses need greater certainty about whether premises can open and operate before committing investment.

UKHospitality also says reform cannot substitute for action on tax. It is seeking measures at the Budget on 28 October; the source does not specify the year for that Budget date.

What happens next

For founders preparing to open premises, the immediate requirement remains compliance with the current system. The published guidance does not give applicants the automatic approvals or faster planning routes sought in the report.

Early discussion with the licensing authority can establish what a council expects before an application is submitted. That gives operators an opportunity to address potential problems before they hold up a decision.

Contact with neighbours and residents’ groups is another practical step identified in the source. Local objections can delay applications, making engagement before submission relevant to an opening timetable.

Where possible, founders can pursue licensing and planning applications at the same time, rather than waiting for one process to finish before beginning the other. This addresses the sequence of applications without assuming either will be approved more quickly.

Cash forecasts also need to allow for a longer approval period than initially expected. Negotiating a rent-free period, where available, can reduce the property costs incurred before a venue starts generating revenue.