Geoff Newton: A year on, has the new licensing regime changed everything?

CAST YOUR mind back 12 months to one of the biggest legal changes to affect the licensed trade industry in this country. Many operators spent days, weeks and even months preparing for this day which we were told was a unique and industry-changing event. The final bill in terms of manpower and cost of putting in place all of the relevant paperwork will have run into tens of millions of pounds.

With the anniversary less than a month away I wonder what has really changed.

For most people I have spoken to the answer is 'very little'. It was predicted that there would be an explosion of 24-hour drinking, increased violence on our streets and more social and moral responsibility issues for a nation already considered to be drinking too much.

My own research leads me to conclude that fewer than expected UK sites applied for a 24-hour licence and even fewer use it. One of the great perceived benefits of the new licence was the flexibility that it gave operators over opening hours. True, it has enabled the mass exodus from British pubs at 11.15pm to be dealt with in a more orderly fashion as the totally outdated drinking-up time concept has now been replaced by a more relaxed and sensible approach.

Early signs also suggest that by allowing people to leave when they are ready, rather than being forced out of the door en masse has led to a reduction in alcohol-related violence on some of Britain's high streets.

The reality of the situation is perhaps somewhat different to that envisaged by many. Most suburban operators seem to reflect what most of us really think. Many have extended their licences by maybe one hour during the week to midnight and possibly by two hours to 1am at the weekend. On the high street many operators already had 2am licences, the nightclubs even later closing times. Only minor amendments have been made here - albeit people are perhaps visiting nightclubs a little later now than they used to before the reforms.

Now here's the crux of the matter. Opening later brings with it huge additional costs in terms of staffing, heating, lighting, security and police costs. For many operators it is difficult to get staff to stay late to serve a diminishing group of customers and many feel that they have to provide taxis home for staff in the early hours of the morning.

With utility costs at an all-time high and likely to rise further, this is placing more strain on the variable and direct costs of the operator and, in many cases; all they see is a negligible increase in revenues. This also does not include the recent rise in the minimum wage.

The other area that operators have focused on, quite rightly, is the rules and regulations associated with these new laws. Technically, the licensee needs to be on the premises whenever the unit is open and publicans should be aware that there have been instances where council officials have arrived at a site unannounced to make their checks.

Add to that the additional environmental, health and safety and fire issues that sit firmly in the publican's lap and you can imagine how difficult the task has been. Compliance seems to be generally very good but it has brought another layer of additional costs.

As we move into the second year of this regime I'm sure we have all learned a great deal - what is really needed though is a sensible, practical approach to ensuring that one of the great British traditions is properly regulated to allow everyone to enjoy their leisure time in a comfortable and safe environment.

Geoff Newton is relationship director UK licensed trade, Barclays Business Banking​