23rd March, 2020 by Jamie Childs
These are unprecedented and challenging times for the owners and operators of licensed premises. Howes Percival have been advising clients in the leisure and tourism industry for over 25 years and continue to stand by our clients, contacts and friends in the industry.
Planning and licensing law specialist, Jamie Childs, looks at the latest implications of the Government’s response to the COVID-19 virus on the industry.
Given the constantly evolving circumstances readers should note that this article was written on 23 March 2020 and reviewed on 25 March 2020 before the Prime Minister’s daily briefing on that date.
The Regulations came into force at 2pm on 21 March 2020 and apply to England only. The effect of the Regulations can be summarised as follows:
Businesses affected are advised to review the latest support measures announced by the Government here.
Alongside the restrictions above, the Communities Secretary has announced the relaxation of certain planning rules, which those businesses listed at the first bullet point in the section above may wish to take advantage of.
At 10am on 24 March 2020 the Government introduced permitted development rights which (subject to conditions) allow restaurants and cafes, drinking establishments and drinking establishments with expanded food provision to temporarily provide takeaway food until 23 March 2021.
If it remains practicable for affected businesses to carry on as a hot-food take away in light of current and evolving Government guidance there are a number of other matters which are worthwhile considering:
A premises licence is undoubtedly an asset which can be of significant value to operators and the properties which they own and/or occupy.
At this challenging time there is the increased possibility of premises licence holders unfortunately becoming insolvent. Under the Licensing Act 2003 a premises licence will automatically lapse on such insolvency and will be lost completely unless an application to transfer that licence or an interim authority notice is given within 28 days of that insolvency.
One way premises licence holders may want to protect their premises licences now is to transfer these to another eligible holder who may not be at risk of such insolvency.
Landlords of licenced premises who also benefit from the value of the premises licences that their tenants may hold are advised to liaise closely with their tenants at this time to avoid a premises licence being lost and to consider facilitating any temporary alternative business operation their tenants may propose.
If you wish to discuss the implications of the COVID-19 virus and the Government’s response to it on the industry please contact one of our specialist Leisure & Tourism sector team.
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