English Devolution and Community Empowerment Bill

Baroness O'Neill of Bexley Excerpts

Committee stage
Monday 9th February 2026 Grand Committee

[Baroness Taylor of Stevenage (Lab)]

My Lords, the Government are committed to supporting the high street economy, a key part of which is the hospitality sector and the night-time economy. Amendments introduced on Report in the other place established a new strategic licensing role for the Mayor of London. This included a duty on the mayor to publish and set out his licensing priorities in a new London-wide statement of licensing policies.

There was also an amendment that served as a placeholder for a new call-in power, which provided the Secretary of State with the power to make regulations to confer on the Mayor of London the function of determining relevant licence applications in certain circumstances. Government Amendments 174 to 181 replace this placeholder and provide more detail around the types of circumstances in which the mayor may call in or determine relevant licence applications.

The amendments also add the Greater London Authority as a responsible authority in certain circumstances under Part 3 of the Licensing Act 2003. They place a requirement on the GLA to notify interested parties, including the applicant and the relevant licensing authority, of applications that the GLA considers to meet the definition of potential strategic importance to Greater London. This will be set out in regulations by the Secretary of State. If a London licensing authority decides not to grant an application of potential strategic importance as applied for, including, for example, by rejecting the application or applying additional conditions to it, the mayor is required to decide whether or not to call in the decision.

If a decision is called in, the mayor must issue a direction to the relevant licensing authority, having given regard to his licensing policy and the importance of promoting the licensing objectives. New rights of appeal in relation to directions issued by the mayor will also be introduced to help ensure the call-in power is used judiciously. The new call-in power will initially be given effect in London to help unleash the full potential of our capital’s world-renowned cultural venues but could be deployed in mayoralties across the country in the future to help prevent decisions from being blocked by unnecessary red tape or short-term thinking.

Separately, at a national level, the Government launched a joint government and industry licensing taskforce last year and are considering more than 2,000 responses to a call for evidence that sought the public’s views on its proposals. We expect to consider those views before making any future reforms to the national licensing regime, including on aspects such as pavement licensing. For the avoidance of doubt, the amendments being discussed today concern the licensing regime in Greater London, not national licensing reforms. I beg to move.

[Baroness O'Neill of Bexley (Con)]

My Lords, I have a real concern about this group of amendments, which appears to look to tinker around the edges to bring the Mayor of London and the Greater London Authority into line with other strategic authorities. We already established in an earlier session that governance in London was the first established; it has never been repeated and, indeed, this Bill does not seek to repeat it either. Surely the sensible route is the one that we suggested in Amendment 75: to have a full review, consider the future governance of London and deal with issues such as this at that time.

I do not want to revisit the earlier argument, but I remind noble Lords that in London there is not the same relationship between the mayor and the boroughs as is suggested there might be in the new governance relationships, or indeed that exists elsewhere. In practice, that means that the mayor might not appreciate local circumstances—as I have said before, not all of London is the same. The mayor might not appreciate the local policing capacity, or lack of it, and the implications of that on licensing decisions. He might not understand the local economy and what licensing could mean for that. He might not appreciate the impact of the local demographics when decisions are being made to overturn local licensing decisions.

What is more, as we have heard before, the current scrutiny of the mayor is not considered to be effective. Devolution should mean respect for decision-making at its lowest common denominator—in this case, the borough level. If a more strategic decision is needed for a wider area, the decision should include the local decision-making processes or partners. For those reasons, I urge the Minister to consider the proposals put forward previously for a thorough review, at which time the implications of these amendments could be considered.

[Baroness Pinnock (LD)]

My Lords, I heard what the Minister said in her introduction to this group of amendments about it following a proposed change to the Bill in the Commons. Like the previous speaker, I understand the need, in a global city such as London, to reverse—for justifiable reasons—the direction of devolution and enable a power grab from the local boroughs in some circumstances. However, the circumstances are not defined, apart from saying that they have to be of “strategic importance” across Greater London. Yet the definition of “strategic importance” is left to regulations.

It is not at all clear how the mayor will make such decisions when they have been defined as being of strategic importance. Will they be based on the licensing priorities, which is a requirement for local borough licensing committees? How will local concerns be heard and considered? This appears to be a profound and unnecessary centralisation of power that threatens to strip local democratically elected committees of their voice in matters that affect their communities’ daily lives.

Under this proposal, which is set out in Amendment 179A—it contains a proposed new section headed “Licence applications of potential strategic importance”—local London licensing authorities, such as borough councils, would legally be required to notify the GLA of applications for the sale of alcohol, regulated entertainment or late-night refreshment. A further proposal grants the Mayor of London the power, in effect, to veto or override the decisions of these local authorities. So if a borough council decides to grant or reject a licence, that decision is suspended and has no effect until the mayor decides whether to intervene. This is allegedly the devolution Bill, but I am yet to be convinced that it has any relationship to devolution; this is the imposition of top-down command structure over local democracy.

The additional problem is that, if there is a veto and it is called in by the mayor, how quickly will the mayor decide? What is the democratic way in which that will be decided? Is it just the mayor in his or her office making a decision, or will it go to a scrutiny committee for discussion first? Will there be an open and transparent hearing where the local borough council—or several local borough councils, if it is something that affects several of them—can come and explain its decision? Will the mayor have to explain why it has been called in? A lot here is unsatisfactory, to say the least. I ask myself: who is best placed to make a judgment about licence applications, which can have significant effects on people’s daily lives? Is it those who live there and their elected representatives, or is it the mayor of 7 million or 8 million people who says, “Actually, I know best. This is important for business, so hard luck if it affects your daily life”? That is the risk in this.

In the end, this group of amendments is unsatisfactory until we know the definition of “strategic importance” and the methods that will be used for decision-making. For those reasons, I hope the Minister will think again and reconsider. I understand why, if it is a significant application that will affect large parts of London, you would want a mayoral authority to take that decision. But I would want to know how that is defined and how that decision will be taken in a public setting, with the ability for people to have their voices heard and an appeal process.

--- Later in debate ---

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank noble Lords for their comments on these amendments. I will be very happy to meet noble Lords to discuss the proposals further and in more detail. I will give a little more information now and, I hope, answer some of the questions that noble Lords have asked.

On why we feel that the new call-in power is needed, there is evidence of unmet potential for London’s night-time economy. A YouGov survey found that 45% of Londoners stated that they had ended a night out before midnight in 2023-24, despite wanting to stay out later—I never do but, obviously, there are people who do. Night-time spending in the capital fell by 3% from 2022-25. London also has a lower premises licence approval rate than the rest of England and Wales. Of course, the reasons for that are multifaceted but, through the establishment of a new mayoral call-in power, intended to be used only in specific circumstances, as a measure of last resort, we would hope to encourage a more enabling and joined-up approach to premises licensing that unleashes the full potential of London’s cultural hospitality and night-time economy sectors. I know we have talked many times in your Lordships’ House about the restaurant and pubs business, and so on. We particularly want to encourage that sector in London—and everywhere else, but it is important to do that for the capital’s tourism and other trades.

In answer to the questions from the noble Baroness, Lady O’Neill, the Government support the principle of localism in licensing decisions, but we are committed to putting the right powers at the right levels to drive economic growth that we want to see. Local licensing authorities are often, or in fact nearly always, best placed to make licensing decisions based on their local knowledge and in consultation with other responsible authorities, including the police and enforcement authorities. But where the licensing system affects sectors with a strategic economic role—the noble Baroness, Lady O’Neill, mentioned that aspect—it is important that city-wide considerations can be taken into account. The new strategic licensing role of the Mayor of London would enable this and provide an opportunity to adopt a similar approach to those that have worked effectively in New York, Amsterdam and Sydney.

To pick up on some specific points about how this is going to work—the noble Baroness, Lady Pinnock, asked a couple of questions about this—the mayor will draw his strategic licensing policy by consultation on it before it is published. The mayor will be required to consult each London licensing authority, which will be able to make representations about its local circumstances. The Government intend to consider this and may seek to engage with key licensing stakeholders before setting out thresholds of what that

“potential strategic importance to Greater London”

actually means in regulations. That will provide further detail on the types of licence applications that will potentially fall within the scope of the mayor’s call-in power.

In answer to the question from the noble Lord, Lord Jamieson, about why this issue has not come forward before, that is a fair point. Further time is required to develop the new mayoral call-in process, including how it would interact with existing licensing legislation. In thinking about bringing this forward, the Government have considered that sometimes the best way in which to deliver devolution across the country is to test out new powers or approaches in one or two places first. As a globally renowned centre for culture and nightlife, London represents an ideal location to test new strategic licensing powers and duties. Nevertheless, it is very much our intention to ensure that it will be possible to roll these out to other mayors across the country, subject to the provision of appropriate evidence via provisions in the Bill. Piloting things is a very good way in which to see how effective they are, and whether they get the balance right between the local decision-making to which the noble Baroness, Lady O’Neill, referred and what we might think of as a strategic call-in power—so it is very important to do that.

I thank my noble friend Lady Dacres for her comments about licensing. She and I had an informal meeting with some London leaders on Saturday. They were not all London leaders, so I will not use that as evidence because that would not be fair, but, broadly, their view was similar to that of my noble friend Lady Dacres: although you would not want this to be used all the time, it is an important power to have in a key city such as London. However, a call for evidence is out and is currently being reviewed.

[Baroness O’Neill of Bexley (Con)]

Were all those whom the Minister consulted inner London authorities, or did they include outer London boroughs as well? My frustration is with the fact that everyone assumes that London is all the same, yet Westminster is certainly not like Bexley; and Lewisham, where the noble Baroness, Lady Dacres, comes from, is not like Bexley. Bexley has a night-time economy, yet the Mayor of London is considering closing our police front counter but will not close Lewisham’s because it is that much closer. The police in Bexley are closing down and not working past 10 pm, yet obviously the nightclubs are open till 2 am. Those sorts of things have to be considered for the benefit of all local people, but the mayor will not be aware of them. I apologise, but I felt I needed to say that.

[Baroness Dacres of Lewisham (Lab)]

Just to correct some of what the noble Baroness alluded to, I see Lewisham as a mix of inner and outer London because we have the south circular and diverse aspects to our borough. She mentioned the police station. All our police station fronts, bar one, have been closed. Lewisham has the largest police station in London—in fact, in Europe—and I am sure that is the sole reason why it has not been closed. It includes horses, as well as other back-office support for the police. I wanted to correct that for the record, because the noble Baroness made it seem as though we are open because of our distance from central London, and that is not the case.