New regulations establish the framework for the Mayor of London to “call in” certain premises licence applications considered to be of strategic importance to Greater London.
The changes represent one of the most substantial shifts in the governance of alcohol and entertainment licensing in London since the Licensing Act 2003 came into force.
The new regulations, formally known as the Licensing Act 2003 (Applications of Potential Strategic Importance to Greater London etc and Consequential Amendment) Regulations 2026, support powers granted under the English Devolution and Community Empowerment Act 2026.
Which applications could be affected?
Whilst only a relatively small number of applications are expected to be called in by the Mayor, the categories capable of being identified as being of potential strategic importance are much wider than many operators may expect.
A new premises licence application or variation application may fall within the regime where any one of the following applies:
- The premises is in Fee Band D or E (i.e. the premises has a rateable value of over £87,000);
- The premises is in Fee Band B or C (rateable value between £4,301 – £87,000) and is proposing licensable activities after 11pm;
- The premises has a proposed capacity of more than 5,000 persons;
- The premises licence is for a limited period of less than three months; or
- The premises is in Fee Band B or C and is proposing regulated entertainment in the form of live music.
How will the process work?
Where an application falls within one of the categories for potential strategic importance, the licensing authority must notify the Greater London Authority (GLA).
The GLA then has up to 10 working days to determine whether the application should formally be treated as an application of potential strategic importance.
If a local authority hearing is required, then the GLA is entitled to participate in the hearing and the licensing authority must subsequently provide the Mayor’s office with the hearing decision and other relevant documents.
Following a local authority’s decision, the Mayor has 20 working days to decide whether to intervene and direct the licensing authority to change the decision. During that period, the local authority’s decision does not take effect.
Where the Mayor changes the local authority’s decision, the Mayor’s substituted decision becomes the decision subject to appeal.
The introduction of an additional strategic review may increase complexity and extend timeframes in certain cases. However, the Mayor has repeatedly indicated that these powers are intended to support London’s hospitality sector and will be used to remove barriers to growth rather than impose additional restrictions.
A new strategic layer, the same licensing objectives
A key question is what factors the Mayor will take into account when deciding whether to amend or overturn a licensing decision.
The answer lies in part in the forthcoming London Strategic Licensing Policy, a draft of which has already been consulted upon. The policy will provide the framework through which applications are assessed by the Mayor against wider London priorities, including economic growth, culture and the night-time economy.
However, the Mayor’s powers sit within the Licensing Act 2003 framework and the promotion of the licensing objectives will remain the primary consideration. The Strategic Licensing Policy may inform how decisions are assessed, but it will not displace the licensing objectives.
Looking ahead
How frequently these powers will be used remains to be seen. Nonetheless, operators and developers involved in significant London licensing projects should familiarise themselves with the new regime now.
Applications that might previously have been viewed solely through a local policy lens may increasingly be considered against wider strategic objectives for London’s economy, culture and night-time offer.
Poppleston Allen advises operators, developers and investors on complex licensing applications across London. If you are considering a hospitality, leisure or mixed-use development and would like advice on how these new powers may affect your licensing strategy, please contact us on 0115 953 8500.
