Government Announces New Planning and Licensing Reforms

On 26^th July 2025, the Government announced a new set of planning and licensing reforms aimed at supporting the growth of hospitality businesses and revitalising high streets across the UK. The changes are being introduced ahead of the publication of the Government’s Small Business Plan and are part of the wider Plan for Change initiative to boost local economies and reduce regulatory burdens for small businesses.

(Source: Flickr / Dominic Alves)

Key Policy Measures

The announcement outlines the following core proposals:

• National Licensing Policy Framework: the Government will introduce a new framework that streamlines and standardises the process for securing planning permissions and licences for hospitality businesses. The aim is to reduce cost, complexity and delays currently caused by varying local regulations.

• Hospitality Zones: designated areas will be created in which permissions for activities such as alfresco dining, street parties and extended operating hours can be fast-tracked.

• Change of Use for Disused Shops: the reforms will make it easier to convert empty or underused units into hospitality venues such as cafes, bars and music venues.

  
  

• Agent of Change Principle: long-standing hospitality and cultural venues will be given greater protection from noise complaints by new residential developments. Under the Agent of Change principle, it will be the responsibility of developers to mitigate noise impacts, for example, through soundproofing, when building near existing venues.

  
  

Wider Context and Delivery

These reforms are part of the upcoming Small Business Plan, which will outline further steps to unlock the potential of the UK’s 5.5 million small and medium-sized enterprises (SMEs). SMEs contribute an estimated £2.8 trillion in turnover and account for around 60% of private sector jobs. The changes are also aligned with the Government’s stated goal to reduce the administrative cost of regulation by at least 25%.

In addition, the reforms build on the High Street Rental Auction Scheme, which is already in operation. This scheme enables local councils to take control of commercial units that have been vacant for over a year and auction off leases to bring these spaces back into active use.

The full set of proposals is subject to an initial Call for Evidence, expected in due course, and will be implemented as soon as possible following that process.

Government and Industry Response

In a statement accompanying the announcement, Business and Trade Secretary Jonathan Reynolds said:

“This Government has a plan to replace shuttered up shops with vibrant places to socialise turning them into thriving cafés or busy bars, which supports local jobs and gives people a place to get together and catch up over a beer or a coffee.

Red tape has stood in the way of people’s business ideas for too long. Today we’re slashing those barriers to give small business owners the freedom to flourish”.

Chancellor of the Exchequer Rachel Reeves added:

“Our pubs and bars are at the heart of British life. For too long, they’ve been stifled by clunky, outdated rules. We’re binning them - to protect pavement pints, alfresco dining and street parties - not just for the summer, but all year round”.

Commenting from the business sector, Craig Beaumont, Executive Director at the Federation of Small Businesses, said:

“By cutting red tape this enables small business to serve more customers outdoors. Let’s hope this is just the kick-off to a bold, long-term small business strategy”.

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At Bluestone Planning, we will continue to monitor developments around the Call for Evidence and forthcoming legislative detail. We will also provide guidance to clients on how to align future projects with the proposed reforms, including opportunities related to hospitality-led regeneration, change of use applications and activity within designated hospitality zones.

If you would like to discuss how these changes might affect your project or portfolio, contact us at Bluestone Planning by calling +44 1235 766825 or emailing admin@bluestoneplanning.co.uk.