Business set-up: Licences and licensing - Scotland
Licensing is probably one of the most important subjects in setting up a pub business. Failure to apply for your licences in time will result in you not being able to open the pub on the day of change.
The 2005 Licensing Act ("the 2005 Act") will significantly change the way in which public houses will operate in relation to sales of alcohol or provision of regulated entertainment (such as live and/or recorded music, karaoke, dancing and sporting events).
All licensed premises will now be governed by Licensing Boards. It will be them who consider all applications, deal with all complaints and they who decide what will happen in relation to any particular licence in the future. They will work closely with the Police, the Fire Authority, the Environmental Health and Health & Safety Departments and Child Protection Agencies. They will have a common goal of furthering the five pillars of licensing going forward, those being the:
- Preventing of crime and disorder;
- Securing public safety;
- Preventing public nuisance;
- Protection of children from harm; and
- Protecting and improving public health
You will need to make an application under the new legislation for a Personal Licence.
- The new legislation now differentiates between the "fixed" asset of the public house and the "mobile" licensee who occupies it a particular point in time.
- Any public house will, in the future, have to have a Premises Licence. This will detail the specific "licensable activity" permitted by the Local Authority. As this licence lasts for the duration of the building many freehold owners, such as Punch Taverns, believe it is more appropriate for this to be held by them, thus avoiding the need to keep changing the holder's details every time a retailer moves or sells their business.
- You, as the licensee, need to ensure that you can sell alcohol whilst occupying the public house and therefore need to hold a Personal Licence so you can be appointed as the Premises Manager.
Anybody holding a personal licence will, after 31st August 2009, be authorised to sell alcohol.
It is advisable for there to be at least two personal licence holders per licensed premises, as only a personal licensee may authorise the sale of alcohol. That does not mean that a personal licensee must be on the licensed premises at all times (unless there is a condition on the premises licence requiring that, or requiring it between certain hours). It means that the personal licensee charged with authorising any sales is aware of what is going on, generally, on the premises for which they are responsible.
To avoid potential difficulties, it is recommended, especially during busier trading periods, that where possible a personal licensee is on the premises at all times. Where it is not possible, the temporary conduct of the business should be delegated to a responsible person who will then assume the duties of the personal licensee, but not necessarily the legal liabilities.
So there can be no doubt, it is advisable that for any period during which responsibility is delegated, a log is kept of by whom, for what period and to whom responsibility has been delegated; and it is also advisable that all staff working during that period are made aware of who is "in charge".
The personal licence lasts for 10 years unless forfeited. It can be forfeited or suspended for up to 6 months upon conviction of a "relevant offence". It is suggested that you interpret the term "relevant offence" as meaning any offence which is not a minor traffic offence.
Before any licensed premises can operate as such, a personal licensee must agree to accept the duties of Premises Manager; and have that noted on the premises licence.
It is an offence to conduct any licensable activity without a Premises Manager noted on the premises licence.
The Premises Manager is someone who must hold a valid personal licence, and one who will be principally responsible for the good conduct of the business on the premises. The Premises Manager must have a detailed knowledge of the conditions attached to the premises licence, and ensure that the business is run in accordance with those conditions.
Much like the licensee under the old licensing system, it would be the Premises Manager that the Police and/or Local Authority will turn to if they have any issues with the conduct of business; and it would be the Premises Manager who they will look to when investigating any breaches of conditions or other offences committed on the premises.
Even if the Premises Manager has temporarily delegated responsibility (due to holiday/other absences from the premises) to another personal licensee or responsible person, it will still be the Premises Manager who is likely to have to answer for the conduct of the business during absences.
The Premises Manager will ordinarily be the person who is closest to the day to day conduct of the business.
It is important that you understand this new legislation and your Business Relationship Manager will be able to assist you with this.
All applicants will need to hold a Personal Licence, before they can take over the running of a public house.
This will involve passing the appropriate examination, the Scottish Certificate for Personal Licence Holders (SCPLH) and applying to the Local Authority where you currently live. Your BRM will again be able to arrange training dates and discuss applications with you.
We recommend that you arrange to attend our Foundations For Success course as soon as possible in order that you obtain the necessary qualifications to apply for a Personal Licence.