A Cumulative Impact Policy (CIP) is a tool used by local councils in England and Wales to manage the effects of having a high concentration of licensed premises such as pubs, bars, restaurants and off licences in a specific area. Its purpose is to help protect the Licensing Objectives, particularly where evidence shows that too many premises in one place are contributing to problems like crime and disorder and public nuisance.
What does “Cumulative Impact” mean?
The term cumulative impact refers to the collective effect that numerous licensed premises can have on a local area. It recognises that: individual businesses may operate responsibly on their own, but the combined presence of many such premises can create stress on local services, environmental quality and community safety beyond what any single venue would cause.
Examples of impacts that may justify a CIP include:
- increased crime and disorder related to alcohol consumption
- a rise in public nuisance (noise, litter, anti-social behaviour)
- pressure on transport hubs and street cleaning services
- strain on emergency services and policing resources.
Legal Basis and Policy Requirement
While cumulative impact itself is not specifically named in the original Licensing Act 2003, it has been formally brought into the Act through the Policing and Crime Act 2017, which introduced the requirement for councils to produce a Cumulative Impact Assessment (CIA) if they propose a CIP. These assessments must be evidence-based and are reviewed at least every three years.
The UK Government’s Section 182 Guidance explains that licensing authorities can consider cumulative impact within their policy statements when evidence shows concentrations of licensed premises are undermining the promotion of one or more licensing objectives.
What is the effect of a Cumulative Impact Policy:
Applications for new licences/variations to existing premises licences within a CIP will be subject to more stringent review by the relevant authorities. The applicant will need to show why the grant of the application will not add to the existing problems within that locality.
Often, when a CIP is adopted, the following happens
- A rebuttable presumption generally arises against granting new premises licences or variations to increase or extend existing licences within the CIP.
- This means that applications will normally be refused unless the applicant can show that the proposal will not add to the cumulative impact and will support the licensing objectives.
Importantly:
- A CIP does not create an absolute ban. It does not mean that no licence will ever be granted in the area. Well-prepared applications, strong operating schedules, and measures that demonstrably safeguard the licensing objectives can still succeed.
- The assessment and review process ensures that the policy continues only where evidence supports its need. Some councils remove or modify CIPs when the supporting data changes.
Is a CIP a no-go zone for operators?
Despite the additional scrutiny created by a CIP, operators should not be deterred from applying where they have a strong, well-thought-out proposal. Licensing Authorities regularly grant applications within CIP areas where applicants can clearly demonstrate that their operation will not add to cumulative impact and will actively promote the licensing objectives. High-quality applications, particularly those for food-led venues, smaller capacity premises, or businesses with robust management controls, can be viewed positively. With careful planning, early engagement with responsible authorities, and a detailed operating schedule, applying within a CIP area can still become a commercially attractive opportunity rather than a barrier to entry.
Is a Premises Licence in a CIP more valuable?
In practice, a premises licence located within a CIP can be more valuable, although this depends on the nature of the premises licence and the local market.
Because a CIP creates a presumption against the grant of new licences or variations, licences that already exist within the designated area may become scarcer. This scarcity can increase demand, particularly where the licence permits alcohol sales during desirable hours or allows flexible use of the premises.
How can I protect a Premises Licence in a CIP?
A premises licence will lapse if it is surrendered (by for example, a disgruntled tenant), if the licence holder ceases to be entitled to work in the UK or by the death or insolvency of the holder.
It can then prove very difficult to have the licence reinstated on the same terms and conditions. However, it is not impossible to protect the premises licenses, and indeed some Licensing Authorities do make specific exemptions.
Some landlords guard against losing a licence, particularly in an area subject to a CIP by applying for a second licence (shadow licence) in their name on the same terms and conditions as the “master licence”. The Authorities can take this as an opportunity to update the new licence with their “standard” conditions.
For further information or queries, please feel free to contact Alex Tomlinson or any of our licensing solicitors on 0115 953 8500.
