Liquor Licensing

Liquor licensing in Scotland is now regulated by the Licensing (Scotland) Act 2005. One of the main aims of this new legislation is to accommodate the increasingly varied types of licensed premises, including those premises which change their character at different times of the day. The legislation is also underpinned by the following five licensing objectives:

• Preventing crime and disorder
• Securing public safety
• Preventing public nuisance
• Protecting and improving public health
• Protecting children from harm

Liquor licensing is administered by local Licensing Boards. The Highland Licensing Board covers the Highland Council area, and is divided into three divisions - Inverness Nairn Badenoch & Strathspey, Ross Skye & Lochaber, and Caithness Sutherland & Easter Ross. Within our main operational area there are also Licensing Boards in the Western Isles, Orkney, Shetland and Moray. Each Licensing Board has its own policies on certain matters such as opening hours, and can apply Local Conditions to the licences which it grants for premises in its area.

Every licensed premises must have a Premises Licence, which authorises the sale of alcohol in accordance with an Operating Plan. The Operating Plan is specific to the premises, and sets out the way in which the premises are run, including detailed floor layout plans, opening hours, activities and facilities provided, the capacity of the premises and the policy for the admission of children (i.e. under 16s) and young persons (i.e. 16 and 17 year olds) to the premises.

Premises Licences do not expire or require regular renewal, but the consent of the Licensing Board must be obtained by way of an application for variation of the licence or Operating Plan for any proposed changes to the way in which the premises are run, or to the layout of the premises. Although there is no regular renewal, an annual fee must be paid to the Licensing Board in October each year to keep the Premises Licence in force.

Every premises has to have a Premises Manager (and you cannot be the Premises Manager for more than one premises) who must be the holder of a Personal Licence. To apply for a Personal Licence you must have completed a licensing qualification - the Certificate for Personal Licence Holders. Licensing Boards may require larger or late night premises to have a Personal Licence holder on duty at all times, and these premises will therefore have to have several Personal Licence holders on their staff.

Personal Licences last for 10 years and are also subject to endorsement, and ultimately review or suspension, in the event of any breaches of licensing law or the conditions of a Premises Licence by the Personal Licence holder.

The Premises Licence can be transferred to a new holder if there is a change of ownership of the licensed business, or in the event of the death or insolvency of the licence holder. There may also be a change of Premises Manager at the same time as such a transfer.

Applications can also be made for Occasional Licences (by Personal Licence Holders or voluntary organisations) for the sale of alcohol in connection with specific events at premises or locations which do not have a Premises Licence. Premises Licence holders can also apply for extended opening hours for their premises in connection with specific events or occasions.

Licensing Standards Officers, appointed by the Licensing Boards, are responsible along with the Police for checking compliance with licensing laws and the conditions of Premises Licences. Off-sales operators in particular need to be aware of initiatives such as test purchasing to check compliance with the laws relating to the sale of alcohol to persons under the age of 18.

All staff involved in the sale of alcohol must be trained, and Premises Licence holders have to maintain detailed training records. The 2005 Act also requires certain notices to be displayed in licensed premises, and there are some detailed regulations for the display of alcohol for sale in off-sales premises.

The 2005 Act is the first stage of reform of Scotland’s licensing laws and there may soon be further legislation to deal with other aspects such as minimum pricing, a ban on discounting on multiple purchases, and the imposition of a Social Responsibility Levy on various businesses including licensed premises.

For comprehensive and up to date advice on all licensing matters contact Graham Watson.

Disclaimer: The information in this publication is based on our current understanding of the law. It has been produced for information purposes only. Professional advice should always be sought before taking any action.

Macleod & MacCallum cannot take any responsibility for loss incurred through acting or failing to act on the basis of anything contained in this publication.