30: Clause 16, page 9, line 20, at end insert—
“(4A) The Secretary of State must by regulations make provision for and in connection with a streamlined process for granting personal and premises licences to businesses that—(a) both have an alcohol premises licence and are a personal licence holder, and(b) have not been subject to enforcement action in the last 12 months for actions that a licensing authority would judge as inconsistent with conditions set out in regulations.”Member's explanatory statement
The purpose of this amendment is to acknowledge that the majority of retailers selling tobacco products and vape products do so responsibly and have robust policies in place to prevent sales to children and to prevent the sale of illicit or non-duty paid products.
My Lords, I am delighted to speak on the Bill for the first time—not because of a lack of interest, but because it clashed with other Bills going on at the same time. I declare my interest as chair of the Proof of Age Standards Scheme, known as PASS, which looks to provide age verification in the form of a PASS card—currently it is a physical card, but I hope it will be digital—for those wishing to access shopping, nightlife and alcoholic drinks to prove their age.
I will say at the outset what the purpose is and why there is a need for Amendment 30. I am grateful to the Association of Convenience Stores for helping me prepare and draft the amendment. The ACS has 50,000 local shops and its membership would be greatly affected by the Bill, if this amendment is not carried. The explanatory note helpfully sets out the purpose of the amendment, which is to acknowledge that the majority of retailers selling tobacco and vape products do so responsibly and have robust policies in place to prevent sales to children and to prevent the sale of illicit or non-duty-paid products.
The Bill proposes the creation of a new licensing system for the sale of tobacco and vaping products, which will require thousands of existing retailers to transition to new administrative processes. Local authorities will also have to handle a significant volume of licensing applications. I omitted to say that I also chaired the ad hoc committee of your Lordships’ House that looked at the review of the Licensing Act 2003 and which reported in 2016-17.
Without a proportionate transition system, the Bill may create unnecessary burdens for both businesses and enforcement bodies. There is an established precedent for a proportionate approach. I referred to the introduction of the Licensing Act 2003, dealing with alcohol, which allowed grandfather rights that gave responsible existing licence holders permission to transit to the new framework in a streamlined way. With Amendment 30, I propose the creation of a fast-track application route for retailers that can demonstrate existing robust controls and compliance. The process would not remove scrutiny or licensing requirements but recognise that many retailers already operate under strong regulatory expectations. Eligible businesses would be those that hold an alcohol premises licence, are a personal licence holder and have not been subject to enforcement action in the last 12 months inconsistent with the conditions set out in the regulations.
I support this group of amendments. It is absolutely right that we have a thoroughgoing licensing scheme. Many people would be very surprised to find that we do not have a licensing scheme for tobacco, as we do for alcohol. It is unregulated, so I welcome the proposals to have a thoroughgoing licensing scheme. It should be streamlined; we need to recognise that the vast majority, as has been said by my noble friend, comply with the law and are fully responsible.
In developing a licensing scheme, we need to look at the experience of other, diverse countries that have a licensing scheme—Finland, Hungary, France, Italy, Spain, Australia, Canada and Singapore, to name some—because there is a lot to be learned from them. I urge the Minister to have a good look at what is happening elsewhere.
A vaping licensing scheme is particularly welcome. Currently, vapes are prolific on our high streets, in markets and at counters in nail salons, and so on. They are unregulated, and that must change to protect people and hold those that are responsible to account. I very much welcome the move to have a licensing scheme here, and I associate myself with what my noble friend Lady McIntosh of Pickering has just said.
My Lords, these amendments in the name of the noble Baroness, Lady McIntosh of Pickering, the noble Lord, Lord Kamall, and the noble Earl, Lord Howe, from whom we will hear later, address the details of a licensing scheme, which could, I believe, be better worked out during consultation and are better put in regulations than on the face of the Bill.
I think there are problems with the suggestion that there should be a joint alcohol and tobacco products licence—as superficially attractive as that may sound. This is for two reasons. The first is practical; there are plenty of retailers who sell both ranges of products, but there are plenty who do not, including some small shops and specialist vaping retailers. Let us not overcomplicate this by having several kinds of licence: joint and single.
The second reason is even more serious, because the objectives of the two schemes are not the same. The objective of the tobacco and vapes licencing scheme should be public health. Indeed, that is the main justification for the generational ban and other restrictive aspects of this Bill. On the other hand, public health was not the objective of the design of the original alcohol licence, and things are set to get worse—which I will come to. Therefore, there are issues about putting the two together.
On Amendment 35, there is a case for restricting the density of tobacco and vapes licensed premises in a local area on public health grounds. Local authorities already have the powers to limit the density of fast-food outlets in certain areas, such as near schools, on the basis that the food they sell is often high in fat, salt and sugars, and is energy dense. Why should local authorities not have the same powers for the density of shops selling tobacco and its various products? Therefore, I oppose Amendment 35. Density is better decided by the local licensing authority, which knows and understands its own area. It is not something that should be on the face of the Bill but something that should be considered in consultation.
My Lords, in speaking to Amendments 35 and 42 in my name and that of my noble friend Lord Kamall, I will also express my strong support for Amendment 30, moved by my noble friend Lady McIntosh of Pickering. All the amendments in this group are guided by an important principle. The success of a new licensing regime will depend not only on the strength of the associated enforcement powers but on the fairness, proportionality and practicality with which those powers are exercised.
Amendment 30 is a sensible and fair proposal. It acknowledges that the vast majority of retailers selling tobacco and vape products do so responsibly and already operate under stringent regulatory regimes. Many of those businesses hold alcohol premises licences and are personal licence holders, and as such as are meticulous in complying with the rules and standards legally in force to prevent under-age sales and the supply of illicit goods.
Clause 16 will impose new licensing obligations, checks and costs. Taken together, for many small independent businesses they will represent a significant administrative and financial burden. My noble friend’s amendment simply asks that the Government recognise the existing history of compliance by allowing a streamlined process for those that have already demonstrated that they meet high licensing standards elsewhere. This would embed efficiency and fairness into the enforcement system and reward good practice. It would save time and cost for retailers and allow enforcement resources to be focused where they are most needed, on those who persistently flout the rules.
Amendment 35 turns to another crucial point of principle: fairness and proportionality in how licensing powers are applied. As drafted, Schedule 1 would allow licensing authorities to impose proximity or density restrictions, in effect preventing a licence being granted simply because a premises happens to fall within a designated zone or is near other retailers that sell similar products. That is an extremely broad and, frankly, concerning power. It risks punishing businesses not because they are non-compliant through choice or negligence but simply because of where they are located.
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Such an approach could see responsible, law-abiding traders be denied or refused licence renewals through no fault of their own, even if they are already operating. In some cases, it might even operate retrospectively, making lawful businesses unlawful overnight because they happen to sit within a newly designated area. That cannot be right; I cannot believe that it is what the Government intend. I can think of few things more certain to undermine confidence in the system. This would risk driving smaller legitimate retailers out of business. I ask the Minister to reassure the Committee that fairness will guide the implementation of these powers; that the guidance will spell this out; that existing businesses will be grandfathered into the new regime; and that no one will be penalised simply for operating lawfully today.
Amendment 42 builds on that principle of fairness and practicality. It asks the Secretary of State to review, within six months of the Act’s passage, the merits of a joint licensing scheme for tobacco and alcohol. This is not about delaying the rollout of the system, and it is certainly not about obliging a retailer selling one type of product but not the other to have a joint licence; it is about coherence. The reality is that many of the same retailers that will fall under this new tobacco licensing regime are already extensively regulated under the alcohol licensing framework. They already conduct staff training, record-keeping and age-verification procedures. There is, therefore, a strong case for examining, where appropriate, whether the two systems can be better aligned. This would have several benefits: it would reduce duplication, streamline processes and cut unnecessary compliance costs for those who are already playing by the rules. Those are benefits for both government and business: more efficient enforcement, a reduced administrative burden and clearer lines of accountability.
The noble Baroness, Lady Walmsley, may have misunderstood the purpose of this amendment, which is, of course, a probing one. If there is an opportunity to simplify processes without compromising public health objectives, surely it must make sense to take it. That is the reason why I hope that the Minister will look favourably on these proposals, which offer a pragmatic and, I hope, constructive way in which to make this new licensing system both effective and equitable.
My Lords, I am most grateful to noble Lords for their contributions to this debate. This group of amendments deals with the details of the forthcoming retail licensing scheme.
Let me say in opening, in response to all of these amendments, that our intention in this regard is very much what the noble Earl, Lord Howe, just spoke about: to support legitimate businesses that stick to the rules while deterring and being able to deal with rogue retailers. We want the scheme to minimise the burden on retailers and local authorities as far as is possible—again, a point that was rightly made by a number of noble Lords.
Let me first turn to Amendment 30, moved by the noble Baroness, Lady McIntosh. I hope I can reassure her that the Government are carefully considering the design and implementation of the licensing scheme. In respect of her opening comments, we look forward to continuing to work with the Association of Convenience Stores and other important and relevant groups. Considering the design and implementation of the scheme will include the interaction with alcohol licensing.
I can tell the noble Baroness, Lady Walmsley, that we are working closely with the Department for Business and Trade as well as the Home Office. However, as she recognised, ultimately, our objectives and motivations are different; they may be complementary, but they are different. For example, on alcohol licensing, the focus is on supporting resilience and growth of on-trade venues that provide safe and regulated spaces for people to socialise. With tobacco and vape licensing, as I said, it is about ensuring that we support those who abide by the rules and act as a deterrent to those who do not. Of course, we have a public health objective.
The noble Baroness, Lady McIntosh, asked about pressures on enforcement, which is a very reasonable question. Local authorities will be able to use the licensing fee they collect from retailers to cover the cost of running and enforcing the licensing scheme. That will assist local authorities and will ensure that the scheme is implemented and sustainable. I believe the noble Baroness also asked if there would be enough time for training and development. Again, that will be part of our discussions that will follow from the call for evidence and the consultation after that, which I will come to very soon.
My Lords, I am very grateful for the opportunity to have had a debate on this small group of amendments. I am also grateful for the support from my noble friend Lord Bourne. I took great comfort from the fact that this has been achieved in other countries, so we can perhaps follow their good practice. I also thank my noble friend Lord Howe.
I think the noble Baroness, Lady Walmsley, misunderstood what I am trying to achieve here. I am trying to set out similar grandfather rights to those awarded in the implementation of the original alcohol licensing Act, as applied in 2005. These rights would allow those businesses already selling the products to continue selling them, but under a process I have set out. I hope that is something she might support going forward.
This is intended as a probing amendment, and my noble friend Lord Howe made the point that we are looking for fairness, proportionality and practicality. I hope that will be a red line running through this process. I hope we can return to this at a later stage, but for the moment I beg leave to withdraw my amendment.
Amendment 30 withdrawn.
Amendment 31 not moved.
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Why does this matter? The majority of retailers act responsibly, uphold age-verification policies and do not deal in illicit products; for compliant retailers, we should freeze enforcement capacity to target bad actors and high-risk sellers. Also, a proportionate transition would reduce significant administrative strain on local authorities and businesses.
I look forward to hearing from my noble friends Lord Kamall and Lord Howe on their Amendments 35 and 42 in this group, but I end with a request for information on how retailers such as convenience stores and others are expected to have enough time to train and prepare their staff for the provisions of the Bill and particularly for a transition phase. That is key. With those few remarks, I beg to move.
I turn now to Amendments 30 and 42. The Government have recently launched a rapid consultation on alcohol licensing, led by an industry task force that would see “growth” incorporated as an objective of the revised scheme, rather than public health. Its recommendations have been warmly welcomed by the Government, but I would advise caution, especially in the light of calls for joint tobacco and alcohol licences today. It is true that hospitality outlets can be important for people’s well-being and community cohesion and often provide economic benefits to local communities. However, many of them rely nowadays more on the sale of meals than on just alcohol and provide an opportunity for family outings. The implication by the industry in the recommendations of the task force is that people cannot enjoy themselves unless they are consuming alcohol. That is, of course, a nonsense suggestion. By the way, each of the three working groups was led by a senior member of the industry and there was no representation on the task force from the Department of Health and Social Care or public health bodies, despite public health acting as the responsible authority for local licensing committees.
The task force report defines the core purpose of licensing as economic enablement and sets out a series of mechanisms to promote that approach. The foreword in the Government’s response, written by the Minister for Services, Small Business and Exports, not only describes licensed hospitality as “foundational” to the UK economy but as selling “happiness, creating lasting memories”, and providing
“the glue that binds us together as a society”.
This is language that, if used in alcohol marketing, would probably breach the industry’s own code of conduct.
The task force’s recommendations would undermine the powers of elected local authorities in several ways: first, by the creation of a quasi-statutory national licensing policy framework to direct local decision-making; secondly, by the automatic addition of off-sales permissions to all on-sales licences; thirdly, by the enhanced powers for unelected licensing officers to override decisions of elected officers on licensing committees; fourthly, through the
“Requirement to link licensing to economic development and culture policies”;
fifthly, by a blanket “amnesty” on licensing conditions deemed to be
“outdated in the modern world”—
deemed by whom, I ask—and, finally, by the imposition of a higher evidential bar for objections to licence applications, with adherence determined solely by licensing officers.
That is why there should be no attempt to link alcohol licences under such a regime with tobacco retail licences. There are other ways of helping the hospitality industry rather than undermining the very foundation of the alcohol sales licensing regime by attacking local democracy in this way.
I want to pick up the point the noble Lord, Lord Bourne, made about looking to other nations. We are aware of several international examples where this has been very successful, including some cities in the United States, Finland, Hungary, France, Italy, Spain and Australia. We have much to call on and will absolutely be considering what works best in the development of our own scheme.
Noble Lords will recall from earlier discussions that we have recently launched a call for evidence, which closes on 3 December. That is on a whole range of issues, including questions about the process for granting licences and implementation more generally. That will inform a subsequent consultation on the detail of the scheme. The points being raised today are all important and they will be considered through both those actions.
I turn now to Amendments 35 and 42, tabled by the noble Lord, Lord Kamall. Amendment 35 seeks to prevent the Secretary of State requiring licensing authorities to consider the location and/or density of tobacco and vape retailers when they make decisions on the granting of licences. The call for evidence asks for feedback on how licensing authorities should make decisions and whether and how much factors such as the ones the noble Lord rightly raised, location and density, should have a role. However—I am sure many noble Lords would agree with this—there are certain places where it would obviously be inappropriate for a tobacco or vape shop to be located. For example, I have not heard a call for vape shops to open next door to children’s nurseries, so there are some obvious points. As our aim is to stop children and young people smoking and vaping, it is absolutely right that we consider factors that might have a role, such as the location and density of retailers. I am very much looking forward to the feedback on this through our call for evidence.
Amendment 42 would require the Government to consider the benefits of combining tobacco and alcohol licensing into a joint scheme. I certainly understand the noble Lord’s very good intention to learn from existing licensing schemes and to avoid unnecessary burdens on retailers—something I have already associated myself with. We recognise that alcohol licensing is established and familiar to a lot of businesses, and that we can learn from alcohol licensing when designing the new scheme. That is why the call for evidence includes detailed questions on the design, and why we have to consult. It is the right thing to do, but it will also meet the intentions of the amendments before us. This process will allow us to consider where we can make use of existing systems and practices, as noble Lords have called on us to do. We share the view that the minimisation of additional costs and burdens, as far as possible, is the right thing to do, while ensuring that the new licensing scheme achieves our aims on tobacco and vapes.
I agree with the noble Lord, Lord Bourne, when he said that the current lack of a licensing system for tobacco is a major gap in enforcement. Therefore, I am glad that the introduction of this new retail licensing scheme is strongly supported by retailers and the public alike. I hope I have been able to reassure noble Lords and that they will not press their amendments.