Westminster City Council has come under fresh attack for refusing to grant new licences for pubs and bars.
The chief executive of Business in Sport and Leisure, Brigid Simmonds, has accused the council of not granting new licences, and unfairly reducing hours on existing licences, when no complaints have been received.
Ms Simmonds has also criticised councillors for hiding behind the excuse that residents oppose late-night bars.
"Research conducted by the Westminster Property Owners Association last year demonstrated that residents in the "stress zone" are not concerned about nuisance from pubs and restaurants," said Ms Simmonds.
"In fact, council tenants in Soho are far less likely to seek a housing transfer than those in almost any other area of Westminster."
The British Beer and Pub Association, British Hospitality Association and the Association of Licensed Multiple Retailers are also opposing the policy.
Ms Simmonds said: "If a pub or club is causing nuisance, then the council is clearly justified in reducing hours on a licence. However, arbitrarily restricting them when no complaints have been received is completely unjustified."
She said the association would be opposing the council's Unitary Development Plan and instead would be pushing for licensing reform.
"It has been proven before that flexible closing hours reduce nuisance caused by the terminal hour," she said. "It would allow leisure operators to attract all age groups, tipping the balance away from the predominantly young who dominate the late-night leisure market."
She warned that other councils in the capital are mirroring Westminster's approach, which could lead to an explosion in such policies.
But Carl Powell, director of planning and transportation at Westminster City Council said that its policies were "based on a broad cross section of support".
"We have to balance the aspirations of the leisure industry and other local businesses, residents and tourists. We will be producing a report to our members in July which we will then discuss with politicians," Mr Powell added.
Westminster residents facts
- Council tenants - transfer requests for Soho/Covent Garden estates are the third lowest of all 17 Westminster estates
- West End residents - only 22 per cent of West End residents wish to move, compared to 35 per cent for England as a whole
The three main concerns named by West End residents are:
No 1: Noise from traffic - 32 per centNo 2: Litter/poor cleanliness - 27 per centNo 3: Pollution - 25 per cent.