London business leaders have praised Sir Keir Starmer for launching a fast-track review into “outdated” licensing laws which could see pubs and restaurants open later.
The review announced on Thursday could also make it easier for venues in the capital to serve food and drinks outside in a bid to "remove unnecessary barriers".
Landlords and community groups will be able to have their say during a four-week consultation process, which ministers hope will result in new measures to boost economic growth.
The news comes as London’s hospitality sector continues to struggle with sky-high rents and staff shortages, as well as the recent rise in employer national insurance contributions and living wage.
According to the British Beer and Pub Association, an estimated 378 pubs will permanently close this year, up from 350 last year, amounting to more than 5,000 job losses.
However, Sir Keir said that "pubs and bars are the beating heart of our communities", insisting that his administration was "backing them to thrive".
The call for evidence will focus on nine key recommendations from the Licensing Taskforce, which recommends streamlining on-trade alcohol licensing for venues and slashing alcohol duty.
Currently, local authorities grant licenses with strict operating hours which venues must follow due to fears of antisocial behaviour blighting the lives of residents.
But Rupert Power, chairman of the Soho Business Alliance, which represents around 150 businesses including Ronnie Scott's Jazz Club, told the Standard: “It's time the law caught up with the realities of running venues in 2025.
"Operating a hospitality business has become uniquely challenging in the years since the pandemic. Rising costs, complex regulations and outdated licensing laws have all created barriers that stifle creativity and growth. We need licensing to be cooperative and enabling, not punitive.
"We hope this review leads to a more flexible, balanced and supportive system that helps venues host live music, nurture new talent and sustain the economic and cultural life that make Soho so distinctive."
Karl Chessell, director of market research firm CGA by NIQ, added: “It is encouraging that the government recognises the role hospitality can play in energising high streets and neighbourhoods across London from a social and economic perspective.
“Providing more flexibility and options for venues to trade longer would unlock additional opportunities to drive sales. It would also give more options to consumers to enjoy the range of great pubs, bars and restaurants in London.
“However, venues are still coping with significant increases in costs so there is still a need for further support such as reform around business rates.”
Michael Kill, chief executive of the Night Time Industries Association, said: “The commitment to cutting outdated red tape that has long held back pubs, bars, and venues — while creating space for more live music, food, and community events — is a positive step forward.
“There is a palpable sense of belief across the sector that this could deliver meaningful change and drive progress towards a more permissive and enabling licensing policy.
“However, while these proposals represent an important shift in the licensing landscape, it is vital to recognise that they will not, in isolation, resolve the deep economic pressures currently engulfing the sector.”
The taskforce was co-chaired by brewer Greene King boss Nick Mackenzie and then-trade minister Gareth Thomas.
Mayor of London Sadiq Khan, who ran al-fresco schemes over the summer, has been granted powers to overrule licensing decisions by London’s 32 boroughs if he judges that that will boost the city’s economy.
A Government spokesman said: “We are looking to rebalance the licensing system, to one which both protects local communities and gives businesses the flexibility they need to invest and adapt to changing consumer trends.”
