Alcohol Licensing in England and Wales: A Guide for Business Owners

If you want to sell or supply alcohol at your business premises in England or Wales, you need a licence under the Licensing Act 2003. Whether you are opening a pub, restaurant, off-licence, hotel, or running occasional events, understanding the licensing framework is essential. This guide explains the licences required, the application process, costs, and the key risks.

1. Licensable activities under the Licensing Act 2003

The Licensing Act 2003 regulates four categories of licensable activity:

• Supply of alcohol — retail sale or supply of alcohol for consumption on or off the premises
• Regulated entertainment — including live music, recorded music, dancing, plays, films, and indoor sporting events (note: deregulation since 2012 has removed many small-scale music performances)
• Late night refreshment — supply of hot food or hot drink to members of the public between 11pm and 5am
• Exhibition of a film — showing a film classified 18 or above (other categories also apply)

If your business involves any of these activities, you need either a premises licence, a club premises certificate (for members' clubs), or a Temporary Event Notice for occasional events.

2. Premises licence

A premises licence authorises specific licensable activities at a named location. It is granted by the local licensing authority (district or borough council) and remains in force indefinitely unless surrendered, revoked, or suspended.

Designated Premises Supervisor (DPS)

Every premises licence that authorises the sale of alcohol must name a Designated Premises Supervisor (DPS). The DPS must hold a personal licence and is the individual responsible for the day-to-day management of the premises in relation to the sale of alcohol. The DPS can be the owner, a manager, or any suitably qualified individual who consents to take on the role.

Application process

1. Prepare an operating schedule setting out the licensable activities, proposed hours, and steps to promote the four licensing objectives
2. Submit the application to the licensing authority with a plan of the premises and the applicable fee
3. Advertise the application on the premises (blue notice, 28 days) and in a local newspaper
4. Serve copies on all responsible authorities (police, environmental health, fire and rescue, child protection, etc.)
5. If no relevant representations are received in 28 days, the licence is granted as applied for
6. If representations are received, the licensing authority holds a hearing and may grant, grant with modifications, or reject the application

Fees (by rateable value)

Large nightclubs and premises used exclusively or primarily for supply of alcohol with a rateable value over £125,000 may attract multiplied fees up to £1,905 (application) and £1,000 (annual).

3. Personal licence

A personal licence authorises the holder to authorise the retail sale of alcohol at premises that hold a premises licence. Requirements:

1. Pass the Level 2 Award for Personal Licence Holders (APLH) — a multiple-choice exam offered by awarding bodies including BIIAB, Highfield, and Pearson
2. Apply to your local licensing authority (the authority for the area where you normally reside)
3. Pay the application fee of £37
4. Disclose any relevant convictions — a DBS (Disclosure and Barring Service) check is required

The personal licence lasts indefinitely (since a 2015 change removing the need for renewal every 10 years). It can be revoked if the holder is convicted of a relevant offence.

4. The four licensing objectives

All licensing decisions must promote these four objectives:

1. Prevention of crime and disorder
2. Public safety
3. Prevention of public nuisance
4. Protection of children from harm

Conditions attached to a licence must be necessary and proportionate to promote at least one objective. The Home Office's Statutory Guidance provides detailed advice to licensing authorities on how to apply these objectives.

5. Temporary Event Notice (TEN)

A TEN allows licensable activities at premises not otherwise licensed (or beyond the scope of an existing licence), subject to strict limits:

• Maximum 499 people present at any one time
• Maximum 168 hours (7 days) per event
• Maximum 15 events per year at any single premises
• Maximum of 21 days per year per premises in total
• Fee: £21 per TEN
• Notice to licensing authority, police, and environmental health at least 10 working daysin advance (5 working days for a "late TEN", though these can be objected to and may be rejected)

TENs cannot be used to bypass conditions attached to a premises licence.

6. Review hearings and enforcement

Any responsible authority or any other person can apply for a review of a premises licence if they believe the premises is undermining the licensing objectives. After a hearing, the licensing authority can modify conditions, exclude activities, suspend the licence for up to 3 months, or revoke it entirely.

In serious crime cases, police can apply for an immediate review — the licensing authority must convene within 48 hours and can suspend the licence immediately pending a full review.

Breaching licence conditions is a criminal offence, punishable by an unlimited fine and/or up to 6 months' imprisonment. Selling alcohol without a licence can result in an unlimited fine or up to 6 months' imprisonment.

7. Late night levy

Some local authorities operate a late night levy — an additional annual charge on licensed premises that open between midnight and 6am (or a narrower band such as 3am to 6am in some areas). The purpose is to fund policing costs associated with late-night alcohol sales. The levy amount varies by rateable value band and whether the authority applies a full or partial levy. Check with your local authority whether a levy applies in your area.

Related guides

• Guide: Food Business Registration
• Guide: Health and Safety