Scottish pub licensing laws are strangling our pubs and clubs

According to a study by The Moffat Centre, the night-time economy - defined as activities between 6pm and 6am - generates £2.16 billion annually for Glasgow, supports 16,600 full-time jobs, and accounts for 10% of the total business base in Glasgow and Dundee.

The Shed in Glasgow's south side has closed after 26 years (Image: NEWSQUEST MEDIA GROUP) Yet pubs in Scotland are closing at twice the rate of those in England, while clubs continue to shut their doors. The owners of The Shed highlighted the challenges facing the hospitality industry and the need for innovation so it’s time to examine the broader licensing framework.

The last major licensing development came in 2001 when the Nicolson committee was appointed to review all aspects of liquor licensing with ‘particular reference to the implications for health and public order’. This move was likely prompted by the sharp rise in alcohol-related deaths in Scotland during the 1990s, which more than doubled between 1994 and 2000, reaching levels significantly higher than in the rest of the UK.

The Nicholson Committee formed the basis of the Licensing (Scotland) Act 2005. It established a single licensing board for each council area, responsible for granting licenses and ensuring compliance. A significant change was the introduction of the ‘five licensing objectives’ aimed at preventing crime and disorder; securing public safety; preventing public nuisance; protecting and improving public health; and protecting children and young persons from harm. These objectives remain at the core of Scotland's licensing regime.

The Act has considerable implications for the hospitality industry. Licensing boards can refuse new licences in areas where there is considered to be an ‘overprovision' of alcohol-selling venues, which follows on from the 1976 Act. This is unlike the licensing legislation for England and Wales and in a dynamic area like the city centre it hinders the potential for new venues to emerge and suppresses business growth.

Read more

• As our politicians back 'assisted dying', beware the Codger Catchers

• Fraser Nelson on the 'Glasgow effect' of ingrained poverty

The Act also introduced conditions aimed at promoting responsible alcohol consumption and reducing the risk of excessive drinking. Among these are restrictions on promotions, such as limitations on "happy hours," multi-buy deals, and other price-based incentives. The goal is to curb binge drinking, often linked to alcohol-related harm such as crime and anti-social behaviour.

For many pubs, bars, and clubs, such promotions have traditionally been a way to attract customers and remain competitive, particularly in a crowded market. The restrictions limit their ability to offer appealing deals, which may result in reduced foot traffic, especially during off-peak hours. For those south of the border, these promotional restrictions do not apply, leaving Scots with the impression that they are getting a worse deal. It is worth noting that bars can still offer promotions and vary prices, but not for periods of under 72 hours.

Efforts to create a more flexible nightlife in Glasgow are gaining momentum, especially with recent changes to late-night opening hours. After years of lobbying, ten city nightclubs can now stay open until 4am, while over 50 city-centre pubs and bars have been allowed to extend closing time to 1am.

The city’s Licensing Board approved this as part of a pilot aimed at lengthening the operating hours of nightlife venues. By staggering the times people leave licensed premises, authorities hope to relieve pressure on police and emergency services. But not all agree - Glasgow’s Health and Social Care Partnership has raised concerns that later opening hours may contradict public health goals by extending drinking hours. Edinburgh Council's restrictive stance on late-night licensing has sparked backlash over plans to cut festive trading hours for pubs and clubs, which currently enjoy a two-hour extension. Hospitality leaders warn this will "punish businesses and customers.”

Pubs are a vital part of Scottish life (Image: free) The discussion of regional differences in late-night licensing highlights a contrast with cities that adopt more flexible approaches. For instance, several nightclubs and bars in other parts of the UK, such as London and Manchester, remain open all night. Professor John Lennon, of Glasgow's Caledonian University, emphasised that a 24-hour model is increasingly becoming an expectation. This necessitates taking a hard look at licensing and transport infrastructure to determine whether Glasgow and other Scottish cities are doing enough to foster a vibrant nightlife.

Cities around the world have relaxed their licensing laws and seen benefits in terms of economic growth and cultural vibrancy. Berlin is often cited as a success story, where flexible licensing hours and minimal restrictions on venues have contributed to a world-renowned nightlife that attracts millions of tourists each year. Moreover, the expansion of the night-time economy has been recognised as a crucial factor in the regeneration of many city centres, such as Manchester, Newcastle, and Dublin.

Local authorities and licensing boards shape Scotland’s nightlife by granting licences, setting conditions for alcohol sales, and addressing complaints or violations. They can impose restrictions on venues, such as limiting operating hours or controlling noise, allowing them to respond to local concerns and ensure community safety.

However, successful nightlife requires more than regulation - it needs an understanding of trends, and fostering of creativity. Over-regulation can stifle the energy that makes nightlife a key part of urban culture. The closure of Glasgow's iconic venue The Arches in 2015, after licensing restrictions limited its operating hours, illustrates how stringent regulations can negatively impact the cultural landscape.

Read more

• Scotland’s future: PM Farage or left-wing populist independence

• Mark Smith: Read this book, and weep for what we’ve lost

The rigidity of Scotland's current licensing process doesn’t need to be a defining feature. A common frustration, say club owners, is the heavy-handed approach often taken by licensing officers, restricting or shutting down operations despite venues meeting safety standards. The hospitality industry has demonstrated its capacity for self-regulation, with venues investing heavily in safety measures such as trained security staff and equipping employees to manage intoxicated patrons.

Addressing community concerns, like noise and public nuisance, without imposing overly restrictive laws, can be achieved. Solutions such as soundproofing, designating entertainment districts, or implementing staggered closing times can mitigate issues. Businesses should be trusted to take a leading role in maintaining order and safety, fostering a more collaborative relationship with regulators. This balance would create an environment where both public interest and a dynamic night-time economy can thrive.

Scotland's licensing strategy has, for over a century, swung between periods of relaxing and tightening regulation. Now, with the challenges facing our hospitality sector, it's time for the pendulum to swing back toward liberalisation, in the interest of revitalising our city centres.

Annie Scott is a Edinburgh University law graduate, and former bar tender