Prime minister Keir Starmer has ordered a fast-track review of ‘outdated’ licensing laws, promising to slash the ‘red tape’ that prevents venues from hosting gigs, serving food outdoors, and staying open into the early hours.

Ministers claim this will boost investment and level the playing field for local businesses.

Supporters are calling this a lifeline for London’s night life. The UK’s night-time economy is worth a staggering £136 billion a year. UK Hospitality Chair, Kate Nicholls OBE, described to BBC Radio 4 how “small-scale changes” will help to “deregulate the system and free up businesses to respond better to consumer demands.”

However, pub and bar owners across Islington told City News that these reforms miss the real issue.

Three Compasses, Farringdon – courtesy of Isabel Raper

City News spoke to Joe, who is a manager at the Three Compasses pub in Farringdon. Three Compasses has a rare 24-hour licence, yet they choose to close at midnight. Joe explained that not only are less people staying out later in the evening, but a variety of additional costs appear the later a venue stays open, be it extra staff or more security.

Rather than opening hours, the owners pointed to soaring bills, increase in the minimum wage, and shrinking margins as the root of the issues the sector faces.

Cafe Kick, Exmouth market – courtesy of Isabel Raper

Gareth, owner of celebrated Islington bar Café Kick, described their overheads as ‘crippling,’ yet accepting that this was part and parcel of trying to survive in London’s hospitality sector in 2025.

Additionally, several charities have condemned the move, advising that relaxing alcohol licensing rules will lead to an increase in antisocial behaviour.

Dr Richard Piper, CEO of Alcohol Change UK has described the reforms as ‘a charter for chaos’, one that will place additional strain on emergency services and cause a spike in drink-related aggression, greater violence against women, and a surge in alcohol deaths.

The British Beer and Pub Association project an estimated 378 pubs will close across England and Wales this year alone, leading to an estimated 5,600 job losses by the end of 2025.

Exmouth Market – courtesy of Isabel Raper

CEO Emma McClarkin says: “For many, it’s impossible to make a profit which all too often leads to pubs turning the lights off for the last time.”

Industry figures warn that unless the government is willing to tackle VAT, business rates, and utility costs, later opening hours will lead to little more than, as one pub owner told us: “a nice headline.”