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What impact will the introduction of a cumulative impact policy have on the licensed trade in the city centre?
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Licensed premises within the city centre have been awaiting a decision from Derby City Council on the possible introduction of a Cumulative Impact Policy designed to cover licensed premises within the area of the inner ring road.
However, it has now been announced that the decision has been put back to enable the council’s general licensing sub committee to consider widening the zone to include off-licenses. If introduced, this could mean that no new pubs, licensed premises, or off-licenses will be permitted in the city centre.
So, will this be a victory for those people who think there are already too many licensed premises in the city, or will it signal the death knell of a pub trade that has been decimated by the economic downturn and the availability of cut-price alcohol - asks Andrew Cochrane, partner and head of licensing at Derby law firm Flint Bishop:
“The saturation of licensed venues in a particular area can clearly have an impact on public nuisance. ‘Cumulative impact’ is the outcome of problems that can occur when significant numbers and/or types of licensed premises are concentrated in one area.
If the concentration of Licence premises is considered to be causing cumulative impact, the Licensing Authority, in this case Derby City Council, could include a CIP within its Licensing Policy in order to restrict numbers of licensed premises that are likely to have a negative effect on the existing cumulative impact.
The possible amendment to the plan to include off licenses has been called for in response to a 7% rise in alcohol-related crime in Derby during 2010. The council originally received guidance that off licenses could not be included in the zoning, but the guidance now appears to be at odds with actual legislation.
If the Licensing Authority were to introduce a CIP in Derby, the zone would include all of the area situated within the inner ring road, which currently contains 73% of all licensed premises in the city.
If relevant representations are received indicating that the granting of a licence will have a negative ‘cumulative impact’ on the area, the council can refuse the licence request. New premises would not be banned altogether, but would have to demonstrate that their operating conditions would not add to alcohol-related problems in the city, which may be difficult.
Derbyshire Constabulary has put forward evidence to show the cumulative impact of licensed premises within the inner ring road and has asked the authority to change its policy to make it more difficult for new licensed premises to open.
A consultation has recently taken place and the Licensing Authority must now consider the police evidence along with all consultation responses to decide whether or not to include the identified area within the cumulative impact section of the policy.
If a CIP is introduced, no new licenses will be granted within the designated area, even if existing premises close. Existing premises won’t be affected unless the licence holder wishes to vary their existing licence, in which case the new policy would apply and any new or variation applications will be presumed to be refused, unless the applicant can demonstrate their operation will not have a negative impact on licensing objectives.
The impact should be expected to be different for different types of premises, such as, a large nightclub or a small licensed restaurant. Therefore, the potential for the nightclub to have negative effect on the cumulative impact would be greater than the restaurant. Each application must be determined on its own merits and the Licensing Authority must grant those applications that are unlikely to add to the cumulative impact on licensing objectives.
In my view, the city council has a difficult balancing act to carry out. In my view it seems slightly strange that the Police are pressing for a Cumulative Impact Policy now. Far from being bombarded with applications for new premises within the area, a number of significant venues, such as Zanzibar, Red and Boogie Nights have all closed in recent years and very few new premises have opened or been refurbished.
Footfall will also have decreased significantly as a result of the economic downturn. A Cumulative Impact Policy will inevitably have implications for regeneration within the city centre as many redundant buildings have found a new lease of life in the night time economy.
On the other hand, many existing operators, particularly those with late Licences, could welcome the move as it will make it difficult for new entrants into the market at a time when there is already enormous competition for trade, partly caused as a result of the fact that lots of people come into Derby having ‘pre-loaded’ on cheap supermarket alcohol and as a result, don’t spend as much in bars when they arrive.
It goes without saying that ensuring the safety of our communities has to be the number one priority; however we do need to support a sustainable Licence trade, which contributes to the economy and the vibrancy of our city centre.”
If you wish to discuss the contents of this article or have further concerns about licensing law,
please contact Andrew Cochrane on andrew.cochrane@flintbishop.co.uk or 01332 226 142.
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