The government appears to have ignored calls to offer exemptions for pubs holding small live music events - and says it will not look at the matter for another year.
A committee of MPs last month recommended the two-in-bar rule, allowing venues to host two performers or less without needing a licence, be re-instated to help make it easier for pubs to host live music.
But in a debate in Parliament on Monday, Lord Carter of Barnes, minister for communications, technology and broadcasting ruled out offering exemptions, but said changes to the minor variations system would help.
"We think that the minor variations process, appropriately implemented, will help venues to put on more small live music events," he said.
He said the government did not agree the Licensing Act had made it harder to stage live music, but recognised small scale gigs could have been affected.
Lord Barnes added: "The government undertake to review the situation in a year's time when the minor variations and the other initiatives outlined have had time to take effect," he said.
"If necessary, we will revisit the subject of exemptions."
However Lord Clement-Jones, who tabled an amendment on the issue but then withdrew it, said he was "pretty disappointed" by the response.
He will instead introduce a Private Member's Bill to back his push for the two-in-bar rule to be re-instated.
"I know that those provisions will have great support, not only down the other end of this building through the Culture Media and Sport Select committee, but also from all those who have an interest in the spread of live music in small venues," he said.
The debate was held as part of reforms to the minor variations system to make it "easier, cheaper and quicker" for pubs to make small changes to their licence.