Late-night alcohol licences fall 19% in five years

The number of pubs, bars and nightclubs with 24-hour alcohol licences in England and Wales has dropped by 19% over the last five years as millennials move away from excessive alcohol consumption.

The number of venues with late-night licences has dropped by 19% to 742

According to ONS data on alcohol and late-night refreshment licensing cited by UK-based commercial law firm EMW, the number of venues with a 24-hour alcohol license fell to 742 last year, down from 919 in 2013.

EMW said there was “low demand” for venues with 24-hour alcohol licences. This was attributed to the costs of staying open longer for some businesses outweighing the profits from additional sales.

Another major factor was the “high level of insolvencies” in the bar and pub industry as well as the “changing attitudes” towards alcohol consumption from younger people.

Research from BMC Public Health showed that 29% of 16- to 24-year-olds were non-drinkers in 2015, up from 18% in 2005.

EMW also noted that low wage growth and Brexit uncertainty have “dampened consumer spending” in the late-night industry, signalling a shift towards buying booze from supermarkets.

The number of supermarkets and stores with 24-hour alcohol licences in England and Wales has increased 40% over the last five years to 2,680 in 2018, up from 1,909 in 2013.

As a result of these factors, together with high beer duty and business rates, a large number of pubs and bars have closed in recent years, which is likely to contribute to the fall in 24-hour licences, the EMW said.

Marco Mauro, legal director at EMW said: “24-hour alcohol licences were expected to boost the night-time economy but this has simply not happened.

“Continued cultural changes in the way people interact and socialise, such as through dating apps, and the rise of Netflix, has created less demand for pubs, bars and nightclubs.

“Increasingly many individuals are also now not going out until much later in the evening, and, as a result, they can often spend less on drinks at the pubs.”

“For most venues the potential extra revenue from staying open 24 hours is still not enough to make those businesses sustainable operations, resulting in many pubs and bars having to close their doors.

“Also, the expensive requirement for door supervisors in some local authorities has acted as a significant burden for some businesses.”

“Without a more supportive attitude from local and central government, we could see a further decline in this part of the late-night economy.”

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