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Strategic Licensing Policy to boost London’s hospitality & nightlife

  • February 13, 2026
  • 3 min read
Strategic Licensing Policy to boost London’s hospitality & nightlife

The Mayor of London, Sadiq Khan, has set out “bold” new licensing plans to support the capital’s “vital” hospitality and nightlife industries. He published proposals for a new city-wide Strategic Licensing Policy that would “create a more unified and consistent licensing system for boroughs and businesses.”

The policy aims to support businesses and boroughs by reducing the inconsistency of licensing rules and regulations, with each of London’s 33 local authorities having a different policy. It would provide a set of “overarching principles for the whole capital that will boost the economy and align better with the Mayor’s strategic priorities,” according to City Hall.

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London’s night-time economy brings more than £139 billion to the capital every year but the hospitality and nightlife industries have faced multiple challenges in recent years, including “outdated licensing rules and complex process,” it added.

In 2025, the government announced it would give licensing powers back to the Mayor to boost the night-time economy and the new Strategic Licensing Policy is “at the heart of these proposed powers.”

City Hall says that the policy requires licensing decisions to promote the licensing objectives by:

  • being based on evidence and avoid unnecessary costs and burdens for businesses.
  • support economic growth, socialising and culture.
  • support a wide range of cultural, hospitality and night-time activities.
  • recognise the benefits of offering a range of well-managed activities after dark.
  • be transparent and work closely with businesses to address issues.

Under the proposals, the Mayor would have the power to call-in certain types of licensing applications of “strategic importance.” This intends to allow him to intervene on applications with a significant economic impact including large venues, festivals, or temporary use of spaces before redevelopment, as well as applications in a location of “strategic importance,” such as a high street or one with an impact on London’s reputation.

To work alongside the new Strategic Licensing Policy, a new London Licensing Policy is being crafted to aid boroughs, businesses, and all involved in licensing. The playbook will explain best practice and offer templates and approaches to “ensure consistency across the capital.”

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Fahad Redha

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