Sadiq Khan pledges to overrule Soho hospitality licensing objections

London’s hospitality businesses could find it easier to secure new licences and extended trading hours after Mayor Sadiq Khan pledged to use new powers to overrule objections he believes are holding back the capital’s night-time economy.

The mayor’s plans come amid an ongoing debate over licensing in Soho, where residents’ group the Soho Society voted to lobby against new licensing applications for pubs, bars, and restaurant businesses.

This move has sparked concern and criticism among hospitality operators, who argue that this kind of opposition to new licences could make it harder for venues to grow, invest, and create job opportunities in one of London’s best-known hospitality districts.

How Khan’s proposed licensing power could impact hospitality

Khan comments come after members of the Soho Society voted to oppose all new licensing applications in the area – suggesting that he will overrule the group’s challenges for hospitality licensing applications.

He also said the residents’ group’s approach was “bad for London” and that new powers introduced by the Government would enable him to intervene in licensing decisions he believes are holding back the capital’s hospitality sector.

It could also mean that bars will be allowed to open later and offer more alfresco dining. The Government has already allowed pub businesses to extend trading hours during the World Cup, highlighting a wider push to support the hospitality and night-time economy.

Khan told The Guardian: “Once in force, new licensing powers I’ve been granted by the government, coupled with our bold new proposals to support London’s hospitality and nightlife, will help us protect venues, extend London’s late-night offer and allow the capital’s nightlife to flourish.”

The Government also proposed new laws around outdoor dining last summer, which would protect pubs and bars from noise complaints, including making property developers responsible for soundproofing buildings if they choose to build near existing venues.

Why the Soho Society is opposing new licensing

The Soho Society – which was first established in 1972 – voted in its Annual General Meeting (AGM) last Thursday to challenge all new licensing applications for any bars and restaurants in the area, including renewing existing licences. It will also object to venues that want to open beyond “core hours”, which is set at 11pm by Westminster council.

The society claims that the area has seen an escalation of unacceptable noise from London’s nightlife, as well as an increase in crime and litter. However, hospitality firms have been quick to hit back at this move.

Speaking to The Guardian, Rupert Power, owner of Sophie’s Steakhouse and Jack Solomons Club on Great Windmill Street, and chair of the Soho Business Alliance, expressed concerns over the effect licensing objections could have on jobs, investment, and growth in the area.

“It is strangling small businesses, meaning there are less hours and jobs for young people to work,” he said. “I really worry for young people. To have a minority be in a position of stifling growth that is funded by the council is not ideal.”

Some members of the Soho Society also claimed they felt pressured not to vote against the mandate after an email allegedly said that individual votes would be seen by the group’s chair.

A spokesperson for the Soho Society stated: “Changes to our planning mandate are about light pollution and encouraging virtual queuing to keep the pavements clear. 

“To our knowledge, no member has raised these concerns with the Soho Society or any other member of the exec committee. The Soho Society has never initiated a review of anyone’s licence.”

Why this matters for hospitality businesses

For hospitality operators, the debate goes beyond Soho and raises broader questions about how easy it is to open, expand and operate in London and elsewhere in the UK.

While the late night economy contributes £139bn each year to the capital, data from NiQ reveals a 4.1% net decline in the number of venues operating late at night, which could be caused by the red tape and restrictions around late openings.

As a result, this segment of the hospitality industry – including clubs, casinos and late bars – is now 28.2% smaller compared to March 2020, when the start of the COVID-19 pandemic forced closures across the country.

If Khan does gain power to intervene in important licensing decisions, businesses could benefit from a more consistent approach to applications that involve extended opening hours, outdoor dining, and venue expansions.

The plans could be especially good news for smaller and more independent operators, as additional trading hours can give a valuable boost to revenue. With profit margins constantly under pressure across much of the sector, even modest increases can have a meaningful impact on a venue’s financial performance.

Discover the ales and ails of hospitality

Planet of the Grapes founder Matt Harris has over 25 years of experience in hospitality. Read his bi-monthly column for Startups now.

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