My Lords, these regulations were laid in draft before the House on Thursday 16 June 2022 under Section 23(6) of the Business and Planning Act 2020 for approval by resolution of each House of Parliament. If approved and made, these regulations will extend the temporary pavement licence provisions for 12 months, to 30 September 2023, and will come into effect the day after they are made.
The temporary pavement licence provisions created a faster, cheaper and more streamlined consenting regime for the placement of removeable furniture, including tables and chairs, on pavements outside premises such as cafés, bars, restaurants and pubs. These measures have been popular and very successful in supporting businesses, making it easier for businesses such as pubs, restaurants and cafés to facilitate al fresco dining with outside seating. It is vital that we continue to support the recovery of the hospitality sector from the impacts of the coronavirus pandemic by extending these provisions for 12 months.
I turn to the details of the regulations. The sole purpose of the regulations is to change the four references to the expiry date of these temporary pavement licence provisions in the legislation, as amended, from 30 September 2022 to 30 September 2023. The regulations do not change any other part of the temporary pavement licence provisions, so the process for applying for a licence during the extended period will not change.
Subject to the regulations being approved and made, businesses will be able to apply for a licence under the process set out in the pavement licence provisions in the Business and Planning Act 2020 for the extended period, until 30 September 2023. The regulations do not automatically extend licences that have already been granted under the current provisions, so businesses will need to apply for a new licence if they wish to have one in place during the extended period. Local authorities are encouraged by guidance to take a pragmatic approach in applying the relevant provisions so that it is as convenient as possible for businesses to apply for a licence during the extended period.
As the process for applying for a licence under the extended period will remain unchanged, I will briefly remind noble Lords of this process. All licence applications are subject to a seven-day public consultation period, starting the day after that on which the application is made, and then a further seven-day determination period during which the local authority is expected either to grant a licence or to reject the application. If the local authority does not determine the application before the end of the determination period, the licence will automatically be deemed to have been granted in the form in which the application was made, and the business can place the proposed removable furniture, such as tables and chairs, within the area set out in the application for the purpose or purposes proposed.
Licence application fees will be set locally but are capped at a maximum of £100. Again, these fees are unchanged from what they are for licence applications under the current temporary provisions in the Business and Planning Act 2020. All licences will be subject to a national no-obstruction condition and smoke-free seating condition, as well as any local conditions set by local authorities.
The grant of a pavement licence covers only the placing of removable furniture on the highway. A pavement licence does not negate the need to obtain approvals under other regulatory frameworks, such as alcohol licensing. Once a licence is granted, or deemed to be granted, the applicant will also benefit from deemed planning permission to use the highway land for anything done pursuant to the licence while it is
valid, such as using furniture to sell or serve food or drink supplied from, or in connection with relevant use of, the premises.
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These regulations will enable food and drink hospitality businesses to continue to obtain a licence to place furniture on the highway outside their premises expediently and as cheaply as possible. As I stated, this extension is considered necessary and vital because it will provide businesses with much-needed certainty to help them recover economically from the coronavirus pandemic, and it will support them in planning for the extended period.
I will explain just how hard the sector has been hit. Evidence from trade organisations and other sources indicates that wider economic pressures faced by the hospitality industry continue, with the sector yet to return to pre-pandemic levels of trading by March 2022, according to the British Beer and Pub Association. I firmly believe that these regulations will provide essential economic support for many food and drink businesses by continuing to enable expanded outdoor capacity for serving food and drink. To support local authorities and businesses with the implementation of the regulations, we will publish an updated version of the pavement licence guidance when the regulations are made.
If these regulations are not introduced, there is a real risk that this will undermine the steps that food and drink hospitality businesses have taken to recover from the economic impacts that they have suffered. We seek to make permanent this measure through the Levelling-up and Regeneration Bill, and failure to extend this measure would result in an unnecessary gap in service and a return to the process under the Highways Act 1980, which would be confusing and costly for businesses and local authorities.
All of us in government have enjoyed al fresco dining at pubs, cafés and restaurants and can see the positive impact that it has on the vibrancy of our high streets. Since introducing a simplified route for businesses such as pubs, restaurants and cafés to obtain a temporary pavement licence, we have heard many examples of local businesses being able to increase their outdoor capacity quickly and at low cost. These draft regulations will allow al fresco dining and drinking to remain a reality for these businesses and provide much-needed continuity and certainty for another year, while we seek to make permanent the measure through the Levelling-up and Regeneration Bill.
I express my gratitude to local authorities for the huge effort that they made in this matter. Their hard work enabled businesses to thrive, while building vibrant high streets, leading to the success of these measures. I commend this instrument to the Committee.