A new battle for control of the West End is looming after the Government said London mayor Sir Sadiq Khan should have the final say on whether pubs and clubs can stay open late into the night.
The mayor is to be given “call in” powers – similar to those he already has for strategic planning applications – that would enable him to overrule a council decision to refuse to allow a pub, bar or restaurant permission to operate outside normal licensing hours.
He could also intervene to allow more “al fresco” dining under the Government’s wish to put “outside dining and later opening hours on the menu”.
Ministers want to remove the bureaucratic “red tape” that is believes is hampering the night-time economy, which in London has failed to return to pre-pandemic levels. The Government said it “backs the British night out”.
But Westminster council said that licensing applications were only refused where safety concerns were raised by police or significant disruption is likely.
There are already more than 2,000 licensed venues in central London – of which about 900 can already remain open beyond midnight under the terms of their Westminster council licence, though many choose not to do so.
The tensions between the Labour mayor and Westminster council could increase if the Tories seize back control of the council.
On Thursday a Labour councillor defected to the Tories - cutting Labour’s majority to two. Borough elections are due to be held in May 2026.
Chancellor Rachel Reeves said a “thriving nighttime economy is good for local economies, good for growth, and good for getting more money in people’s pockets”.
The Government plans to allow the Greater London Authority to review strategic licensing powers and explore a pilot scheme, which would provide the mayor with new powers over “strategic licensing”.
This could include a new "call in" power over licensing applications in areas of strategic importance for the nighttime economy.
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If successful, this could be rolled out to other mayors across England.
Sir Sadiq said on Friday that it was “fantastic news for London”. He said: “I am delighted that the Government is looking to grant London greater powers over licensing.”
“This significant decision would allow us to do more to support the capital’s pubs, clubs, music venues and other parts of the visit and tourist scene.”
But this could provoke more flashpoints with the council, which has already clashed with Sir Sadiq over his plans to part-pedestrianise Oxford Street.
Many councillors believe it is their duty to balance the demands of businesses with the needs of residents and to limit alcohol-related crime and anti-social behaviour in central London.
It could also lead to concerns about the level of policing in the West End at a time when the Met is facing the loss of about 1,700 officers and staff.
Sir Sadiq has also faced calls to expand the Night Tube and to provide more night buses to ensure revellers can get home safely.
The record of his former “night tsar”, Amy Lame, was frequently criticised and Sir Sadiq has yet to announce whether she will be replaced.
A source close to the mayor said: “Over recent years London’s pubs, restaurants, clubs and music venues have been seen as a problem to be managed, rather than as a vital part of London’s economic and social scene.
“From al-fresco dining, to late opening hours, to the impact of burdensome licensing conditions, we need to look at how we can support our venues, not work against them.”
A Westminster City Council spokesperson said: “Westminster has the most pubs and clubs of any local authority so we already have extensive expertise in supporting business to thrive while balancing the views of local people and the police.
“We grant the vast majority of licensing applications which are only refused where safety concerns are raised by the police or significant disruption is likely.
“We need to see the proposals in more detail before commenting further. Local authorities and licensing professionals should be represented on any working group.”
John Dickie, chief executive of the business lobby group BusinessLDN, said: “Enabling the mayor to call in licensing applications – as is already the case with planning applications – will help him to support the capital’s pubs, clubs and restaurants to cut through unnecessary red tape where there are strategic interests at stake.
“In particular, ensuring the night-time economy in central London thrives as part of a truly 24/7 city is crucial for Londoners, visitors and the capital’s economy as a whole.”
At present, the mayor is consulted on all planning applications that are of potential strategic importance to London. This includes developments with more than 150 residential units, those that are above 30m in height and those that involve development on Green Belt or Metropolitan Open Land.
Ironically, the offer of additional powers for the mayor comes only a day after London’s 33 borough council leaders made a united cross-party call for “a seat at the table” as part of a new devolution settlement for the capital.
They want 12 council leaders to sit on a Greater Manchester-style “combined board” to ensure agreement on issues that the Government had devolved to London.
The move also appears to run counter to some of the proposals in Westminster council’s Westminster After Dark Strategy that was launched in March.
This suggests encouraging families into the West End later at night, for example by extending the visiting hours at galleries and museums, and setting up dedicated late-night entertainment zones “away from residential areas” under a new licensing set of rules.
The council also wants more “non-alcoholic activities”, improved safety and better design to “create a welcoming environment for all”.
The late-night entertainment zones would target areas such as Oxford Street, The Strand, and Victoria Street to “foster live music, theatre, and creative venues while managing noise in residential communities”.
Councils gained licensing powers from magistrates courts in 2003 under the introduction of the Licensing Act. The aim was to give local communities a stronger voice in licensing decisions.
According to the Treasury, “blockers to growth include businesses being banned from extending licensing hours for late night drinking”.
Deputy Prime Minister Angela Rayner said: “We’re already reforming planning to back the builders, not the blockers. Now we want to do the same for the nighttime economy which has been neglected for so long.
“Our pubs, restaurants, and live music venues are the beating heart of our cultural life, so it is vital they are given every chance to survive and thrive.
“That’s why it’s time to give the Mayor of London new powers to back the capital’s pubs and clubs, as part of our plan to give mayors the tools they need to drive growth.
“Too often, we have seen the complaints of a vocal minority of objectors promoted over the need for our country to grow - we are determined to change this.”
An industry taskforce will report in six weeks.
Nick Mackenzie, chief executive of Greene King, chair of the British Beer and Pub Association and co-chair of the licensing taskforce, said: “Licensing regulations provide a clear example of how well-intentioned legislation can inhibit economic growth, with excessive restrictions often limiting premises’ ability to respond to changing circumstances and customer demand.”
Emma McClarkin, Chief Executive of the British Beer Association said: “A review of the 2003 Licensing Act is long overdue.
“We are currently working with MPs to pass an amendment to permitted licensing hours at times of major national events when Parliament is not sitting.”