Licensing bosses work to close legal loophole open to exploitation by criminal gangs

Investigations by Leeds City Council’s licensing officers, together with colleagues in public health and West Yorkshire Trading Standards, revealed that organised crime groups are able to exploit a gap in the Licensing Act 2003 and evade enforcement action when a venue is under investigation for suspected illegal activities.

The loophole allows named licence holders to immediately transfer their licence to an associate – effectively re-setting the prosecution process and allowing the illicit sales to continue uninterrupted.

After making the discovery, Leeds City Council’s licensing committee alerted national officials to the loophole – with the government now pledging to analyse the recommendations as part of its ongoing review into the Licensing Act 2003.

As part of its investigation, the council reached out to counterparts across the country to gather evidence and raise the issue on a national scale.

That work unearthed data suggesting the challenges were widespread, with 70 per cent of those surveyed reporting direct experience of licence transfers during enforcement action and 98 per cent supporting national policy change.

Councillor James Gibson, chair of Leeds City Council’s licensing committee, said: “It’s fantastic that, due to the diligence of our cross-party licensing committee members and the hard work of officers, we have exposed what could be a potentially dangerous loophole in the law.

“Our national survey had an overwhelming response from over 240 organisations across licensing, trading standards and public health. The findings were deeply concerning and provide compelling evidence to urgently reform the Licensing Act 2003.

“I’d like to thank our staff and partners here in Leeds, and across the country, for their work in highlighting and tackling this pressing matter.”

Councillor Debra Coupar, Leeds City Council’s deputy leader and executive member for resources, said: “Leeds has led the way in calling for urgent reform on this issue, reflecting the strength and commitment of our ongoing partnership work across the city to support a robust licensing system.

“While no decisions or legislative changes have yet been announced, we stand ready to support national efforts to modernise the Licensing Act 2003 and believe our recommendations are essential to safeguarding the public interest and upholding all legal objectives.”

Victoria Eaton, Leeds City Council’s director of public health, said: “The consequences of criminal gangs being allowed to continue their illegal operations puts the health of people across Leeds, and the country, at risk.

“It’s really important that we urgently close this loophole and stop these gangs from evading enforcement, ensuring the trade of illicit tobacco, vapes and alcohol is effectively and swiftly removed from our streets and communities.”

Linda Davis, Head of West Yorkshire Trading Standards Protecting Communities, said: “We know that due to loopholes in the legislation, often criminal groups are attempting to transfer alcohol premises licences to new, sometimes fake, owners during reviews and appeals, effectively resetting the enforcement process. This enables the shop to continue to trade, selling illicit tobacco and vapes, even after enforcement visits and seizures have taken place.”

The current Licensing Act 2003 regulates activities such as the sale of alcohol, provision of entertainment and late-night refreshment.

The government launched a call for evidence in October last year aimed at reforming the licensing system to develop a more modern, proportionate and streamlined framework.

In its wider response to the ongoing review of the Licensing Act, Leeds City Council also pressed for the inclusion of public health as a licensing objective – enabling alcohol harm to be considered in the granting of licences in at-risk areas.

The government has announced some of the changes so far, with the remainder expected after further consultation.

ENDS