The Queens Speech 2010 and other licensing legislation

It may not have escaped your attention that we have recently had an election! You will also have noticed that the new government has set out its proposals for the next 18 months in the Queens Speech this week.

One of the 22 bills revealed in the Queens Speech was one entitled the ‘Police Reform and Social Responsibility Bill’ and this has the stated intention of making ’the police service more accountable to local people and to tackle alcohol related violence and disorder’. You have to ask yourself how many times have we heard the last part of that strapline before!

As far as anyone involved in the licensing trade is concerned the main part of interest is that section stating that one of the main elements of the Bill is

1. ‘Overhaul of the Licensing Act to give local authorities and the police much stronger powers to remove licenses from, or refuse to grant licenses to, any premises that are causing problems. 2. Banning the sale of alcohol below cost price. 3. Also allowing local councils to charge more for late-night licenses to pay for additional policing, and 4. Giving Local Authorities powers to shut down shops or bars persistently selling to children and doubling the maximum fine for selling to children to £20,000.

There is little indication currently as to how this will all be put into effect. There are already provisions to allow Local Authorities to charge extra for late night licences but that Act has not yet been enabled.

Already the press is full of comments by Tesco and others supporting the drive to ban below cost price sales, although as disclosed by the Daily Mail they seem to be continuing to sell very low cost alcohol at the same time!

How the level of ‘cost price’ is to be established is already causing some press comment and industry reaction. The Morning Advertiser has published an article this week showing that Supermarkets could still sell alcohol at rock-bottom prices if below-cost sales were banned using a definition which is supported by off-trade chiefs. It refers to a definition supported by the Wine & Spirit Trade Association (WSTA) suggesting a method based on sales below duty plus VAT. This would result in beer being able to be sold for about 54p a can and wine for £2.33 according to the Morning Advertiser.

So following on from the outgoing governments’ introduction of the new Mandatory Conditions affecting licences there is more to come which will affect the trade. Watch this space, it seems it will be a very interesting few months for the licensed trade.

If you need help with any licensing issue please contact Partner Peter Adkins.