There are certain “licensable activities” which you can only do if you have a “premises licence” from the relevant licensing authority – your local council. (There are separate licence arrangements for clubs, and temporary events, which I am not dealing with.)
There are three licensable activities: the retail sale of alcohol, the provision of regulated entertainment, and the provision of late night refreshment.
This is all governed by the Licensing Act 2003. My explanation in this article only tells you the general points. There are a lot of detailed provisions and exceptions that might be relevant to you. So it’s a good idea to always get professional advice on the subject rather than make assumptions (or mistakes).
Selling drinks is fairly straightforward. The activities which might amount to “provision of regulated entertainment” are described in some detail in the 2003 Act. They include the performance of a play, exhibition of a film, an indoor sporting event, a boxing or wrestling match, the performance of live music, the playing recorded music, the performance of dance, or any entertainment of a similar description. (However, there are some exemptions.)
“The provision of late night refreshment” includes serving hot food or hot drink at any time between 11 p.m. and 5 a.m. for consumption on or off the premises.
The way the licensing scheme works is that you have to apply for a premises licence to the relevant licensing authority, which will be the council where your premises is situated.
The application may go through on paper. The council will make a decision and that may include any conditions they wish to impose on you. The police and the fire authority, among others, will be informed of your application and they have the right to intervene and make representations. If that happens, then there will be a full hearing at which everyone can speak, and you can defend against, or answer, any objections the authorities are making.
The applicant for the premises licence should be the person who will be carrying on the business which involves licensable activities. That may be you, if your lease is in our personal name, or it may be the company which holds the lease or owns the business.
To make an application you will need to supply a number of pieces of paper to the licensing authority. You have to supply “an operating schedule” which would detail the activities you will be undertaking and when and how, and explain how you will promote the business. You have to provide a plan of the premises. If the application is for the sale of alcohol, you also have to provide a consent form from “the designated premises supervisor” agreeing to take responsibility for the premises licence.
“The designated premises supervisor” is the person who will normally have day-to-day responsibility for running the premises. If you apply for the premises licence in your personal name, you may also be the designated premises supervisor.
The council may simply approve your application, or it may exclude any licensable activities from the premises licence, or refuse to accept the designated premises supervisor you have put forward, or reject the application altogether.
If your premises are being built or altered, and you don’t want to wait until works are completed, you can save time by making an application for a “provisional statement” while works are in hand.
If you are taking over premises where a premises licence already exists for what you want, you can apply for a transfer of the premises licence to you. The same considerations will apply as for a first-time licence. In addition, you will need to provide the consent of the existing holder of the premises licence to establish that you are entitled to it.
If you aren’t able to obtain consent from the previous holder, the premises licence will still be transferred to you if you show that it’s appropriate for you to be the holder of the premises licence – because you are now the tenant, not the previous holder.