The government has rejected the idea of re-introducing the "two-in-a-bar" rule for pubs hosting live music, but claims it is committed to reducing "unnecessary bureaucracy" around the Licensing Act.
And hopes that pubs with a capacity of 200 or less would be exempt from needing a licence for music in future have also been dashed.
The announcement came from Culture Secretary Ben Bradshaw yesterday, who presented the government's response to 26 recommendations made by MPs on the Culture, Media and Sport committee relating to the Licensing Act.
In the response on live music, the report states: "There is no direct link between size of audience or number of performers and potential for noise nuisance or disorder."
But the government said the new minor variations process should make it quicker and cheaper for pubs to add live music to their licence - and could look at exemptions in a year's time.
Other bad news for live music pubs in London was the revelation that the Metropolitan Police has "no plans" to scrap its controversial Form 696. The form asks venues to state the style of music to be performed, the target audience and the name, date of birth, and address of every performer.
Former Undertones frontman Feargal Sharkey and head of UK Music, called for the form to be "abolished".
And the Metropolitan Police had said last month it was reviewing the process, but it seems now a decision has been made to keep the form.
The recommendation that the number of Temporary Event Notices (TENs) pubs are allowed by increased from 12 to 15 was also rejected.
The response says: "We believe the current limits are a good balance between maintaining necessary public protection and keeping the temporary event notice system as a light touch regime."
The idea of introducing a national database of personal licence holders was also rejected, but the government said it was "not ruling out establishing a central register in future".
However, some good news came on the issue of bereaved families having to transfer the name on a licence within seven days of a death. The government said it has concerns about the difficulties families face and has committed to consulting on chanigng the notice period later this year.
Overall the government said it welcomed the committee's view that the Act has "broadly been a success".