Baroness Taylor of Stevenage (Lab)

My Lords, I am grateful to noble Lords from all sides of the House for the seriousness with which our new proposed strategic licensing measures were considered during Committee. The attention given to the detail of these clauses and to their practical implications has been valuable. I begin by stating clearly that this Government recognise the important role of local licensing authorities, which are often best placed to make licensing decisions based on their local knowledge. This is reflected in the design of the new strategic licensing functions for the mayor and the Greater London Authority—for example, by requiring the Mayor of London to consult London licensing authorities before determining the London-wide strategic licensing policy. The Government intend to consider this and may seek to engage with key licensing stakeholders before setting out thresholds in regulations of what is meant by “potential strategic importance” to Greater London. London licensing authorities remain the default licensing decision-makers in Greater London, and the mayor will be able to “call in” decisions made by a London licensing authority only on applications of potential strategic importance to Greater London and in a limited set of circumstances. Even then, the mayor may choose to uphold the decision of the London licensing authority. The Greater London Authority has launched a consultation on the new London-wide strategic licensing policy. I am pleased to hear that many London licensing authorities have responded. This will help to inform the criteria by which the Secretary of State will be responsible for setting out in regulations what “potential strategic importance” to Greater London means. We intend to conduct further engagement with London borough councils and other licensing stakeholders before laying these regulations, as well as any other statutory instruments that are needed to determine the procedural elements of the call-in process. Nevertheless, our amendments establish some important parameters that prevent the mayor encroaching on local licensing authorities’ decision-making unnecessarily. This includes preventing the mayor rejecting an application that would otherwise have been granted by a London licensing authority, reflecting our intention to establish a clearly defined role for the mayor in promoting London-wide strategic objectives to drive growth in London’s sporting, cultural, hospitality and nightlife sectors. The call-in power is intended to be used as a measure of last resort and only in specific circumstances—effective as much in its existence as in its use—to encourage a more enabling and joined-up approach to licensing across the capital. I turn to some of the concerns raised by the noble Baroness, Lady O’Neill of Bexley, in Committee. While my time in local government was spent some 30 miles outside of London, I am acutely aware that large urban areas cannot be treated as homogeneous—least of all our diverse capital. I therefore recognise that the licensing priorities of inner and outer London boroughs will vary significantly, as will their demographics and local policing capacities. There is no inherent contradiction between this reality and the establishment of new strategic licensing functions at the mayoral level. When determining strategic licensing policy, for example, the mayor will be under a duty to have regard to the requirements on local licensing authorities when carrying out their licensing functions—including, for example, the setting of local licensing policies—as well as locally published cumulative impact assessments. The mayor will be required to state his reasons for giving any direction to ensure an appropriate level of transparency. New rights of appeal against mayoral directions will also be established to mitigate against improper use of the call-in power. The Government will monitor the new strategic licensing measures, and the Secretary of State will be able to repeal the measures up to five years after they come into force. I must conclude by emphasising that licensing decisions are, by their nature, nuanced judgments. They involve weighing competing factors and exercising discretion, rather than arriving at a binary outcome. Through the piloting of new strategic licensing measures in Greater London, our intention is to give greater weight to economic growth and the reputational importance of London’s hospitality and nightlife sectors, while recognising the importance of promoting the licensing objectives to help ensure that people’s local concerns are protected. I commend to noble Lords the amendments in my name, and I will listen to other noble Lords before I comment on theirs.