On 26 November 2025, in its Budget, the Government published a National Licensing Policy Framework (“the Framework”) for the hospitality and leisure sectors setting out a strategic vision for a modern licensing system. The Framework has been developed in response to the call for evidence on Licensing Policy Taskforce, which ran from 8 October to 6 November 2025. Responses to the call for evidence raised concerns that disproportionate licensing conditions stifle business growth. Crucially, the responses demonstrated support for a more consistent and transparent licensing system which altogether empowers local authorities, promotes economic growth, cultural development, public safety and community wellbeing.
Purpose of the Framework
The aim of the Framework is to outline a strategy for a modern licensing system that is predictable and proportionate, enabling the growth of responsible businesses while maintaining public safety. The Government believes that this approach to licensing will help it achieve its goal of reducing regulatory administrative costs by 25%. There is no indication of how costs will be reduced.
The Government recognises that licensing policy must not only seek to manage risk but also encourage the growth of businesses and communities. The Framework seeks to reaffirm the licensing objectives (prevention of crime and disorder; public safety; prevention of public nuisance; and protection of children from harm), while explicitly asking licensing authorities to consider promoting business growth and community life.
Who does the Framework apply to?
The Framework applies exclusively to on-trade premises, such as pubs, restaurants and nightclubs and all entertainment activities regulated under the Licensing Act 2003.
The Framework does not apply to off-trade premises. We are not sure why off-trade premises are excluded from the Framework or if representatives of the off trade were even consulted on the need for reform.
Recommendations in the Framework
The Framework makes the following recommendations to licensing authorities:
- Avoid blanket conditions
- Adopt service standards for applicants, setting out expected timelines for processing applications
- Make regular visits to licensed premises with the aim of removing any outdated or overly restrictive conditions
- Take a risk-based approach to licensing by doing the following
A) Focus resources on problem premises/locations and, where possible, plan visits with other local authorities
B) Use data including crime reports and ambulance demands to inform local policies and decisions
C) Only grant short-term or restrictive permissions where there is a clear legal/evidenced reason to do so
D) Support operators to demonstrate how they are managing risks to the licensing objectives
E) Take proportionate and transparent enforcement when issues arise - Work in local partnership with planning teams, responsible authorities, businesses and communities
Implementation
The Framework is non-statutory guidance – it is advisory only and does not restrict licensing authorities’ discretion to determine each application on its own merit. It does not create new legal obligations and where any inconsistency arises between the Framework and the Licensing Act 2003, the latter prevails.
The Government is encouraging licensing authorities to:
- Use the Framework to guide the revision of their Statements of Licensing Policy;
- Inform training; and
- Review local approaches to ensure consistency, transparency and alignment with national strategic aims.
Monitoring, evaluation and review
The Government will monitor the impact of the Framework in discussion with stakeholders (we must assume this will be limited to those in the on-trade) and by analysing data on on-trade premises. Through such feedback, the Government will make informed decisions as to whether further action is necessary, including reserving the right to make the Framework statutory.
The Framework will be reviewed in 6 months to assess its impact and provide any further clarification needed. The Government has stated that the Framework is likely to be subject to further periodic reviews.
Conclusion
The Framework is a set of guidelines and licensing authorities are not under any obligation to implement any of the recommendations contained within it. It will be interesting to see if the Framework makes any difference to decision making in licensing and quite how the cost savings will be achieved.
Please do not hesitate to contact us if you would like to discuss further.