The Greater London Authority (GLA) is to investigate Westminster City Council's controversial licensing policy following a meeting with the Soho Business Association (SOBA).
The deputy mayor of London, Nicky Gavron, has promised to look into licensees' complaints that the council's decision to restrict late-night licences in key areas of the city is damaging their businesses.
Westminster Council has been limiting new licences to 1am and putting a stop on the number of late-night operations in certain areas because it claims the move reflects the fact that violence is on the increase and policing and street-cleaning services cannot cope.
But the policy brings it into direct conflict with the mayor's new three-year tourism policy called "Visit London", which aims to grow the late-night economy further.
Ms Gavron spoke to licensees from Soho at a meeting of SOBA last week, saying she was unaware the council was conducting a restrictive licensing policy and would be looking into it.
She has promised to speak personally to the leader of Westminster City Council, Simon Milton, and mayor Ken Livingstone to discuss the issue.
She said she recognised how much the pub trade brings to London's economy and on the issue of 24-hour opening in London she added: "If not here then where?
"The GLA is interested in this and how we work together with you and Westminster," she said.
This could signal good news for the trade which has been fighting the policy set by Westminster. Groups including the local Westminster Licensees' Association (WLA) have been complaining about the heavy-handed approach by the council.
Kate Nicholls, spokeswoman for the WLA, welcomed Ms Gavron's comments but added: "Westminster is the heart of the Capital but you need to look at these issues across London as a whole."
In July this year the GLA conducted a consultation on 24-hour opening in London. Chairwoman Jennette Arnold said that businesses in London should pay more for the extra police and street cleaning needed to manage the capital's growing late-night economy.