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Licensing Hours Extensions Act 2026: faster pub hours orders

Parliament has changed the way pub opening hours can be relaxed for big moments. The Licensing Hours Extensions Act 2026 received Royal Assent on Thursday 12 February 2026 and took effect immediately, switching licensing hours orders to the faster negative statutory instrument route for England and Wales. For operators, that means decisions on late openings can be taken at shorter notice ahead of major events this summer. (whatson.parliament.uk)

What exactly changed? Section 197 of the Licensing Act 2003 has been amended so that licensing hours orders are now made under the negative procedure. Instead of requiring an affirmative vote, an order will come into force unless either House annuls it within the 40‑day objection window. In practice, that shortens the timetable while preserving a route for MPs or peers to object. (hansard.parliament.uk)

The Home Office power to grant national licensing hours orders already sits in section 172 of the 2003 Act and has been used for royal events, VE Day commemorations and major football fixtures. The new Act does not broaden those criteria; it simply changes how quickly an order can be made. Home Office consultation papers also note that extensions have typically covered on‑sales only and for a limited window. (gov.uk)

The first near‑term test is likely to be the FIFA Men’s World Cup in July 2026. The Home Office has consulted on allowing pubs to serve until 1am after semi‑finals and the final if a home nation is playing and the match kicks off by 9pm UK time. Ministers flagged the approach in December as a way to reduce paperwork for venues and councils. (gov.uk)

Scale matters for planning. The Home Office estimates there are about 132,200 licensed premises in England and Wales; it assumes 10–20 percent might choose to open later on the relevant nights, roughly 13,000–26,000 venues. That is a concentrated spike in trade rather than a sector‑wide surge, but it will be material in city centres and match‑day towns. (gov.uk)

Back‑of‑the‑envelope maths helps budgeting. Take a 140‑capacity pub that stays open an extra 90 minutes with 70 percent occupancy, average spend of £8 per head per hour and a 65 percent gross margin on wet sales. That produces roughly £1,176 of extra takings and about £764 gross profit before staff, security and utilities. Adjust those inputs for your own site to stress‑test margins on a weeknight versus a Saturday.

People costs are the swing factor. Extending by 90 minutes often means a full extra rota block for bartenders, glass collectors and a duty manager, plus SIA‑licensed door staff in busy areas. Factor premium pay for late finishes, taxi chits where offered, and an extra cellar check. For kitchens, the order may extend alcohol service but you still control whether the pass stays open; a reduced menu after 10pm can preserve margins.

Compliance remains non‑negotiable. A blanket licensing hours order removes the need for a Temporary Event Notice for the specified window, but it does not waive individual premises conditions on noise, capacity or CCTV. Home Office material indicates extensions typically apply to on‑sales only; other licensable activities are extended only if explicitly stated in the order. Build in a pre‑event briefing and incident log protocol. (gov.uk)

The administrative savings are modest per site but add up. A TEN costs £21 and must be lodged at least 10 working days in advance, with annual limits and potential police objections. Ministers have previously suggested that each blanket extension can deliver up to a £500,000 economy‑wide boost, though the outcome depends on take‑up and fixture timings. (gov.uk)

There is still a governance safety valve. Under the negative procedure, either House can ‘pray against’ an order within 40 days; annulments are rare but possible. For operators, that argues for planning once an order is laid while staying flexible until it is made. (parliament.uk)

Geography matters. The Act extends only to England and Wales; Scotland and Northern Ireland set their own arrangements. Groups with cross‑border estates should plan staffing, stock and marketing country‑by‑country ahead of July. (hansard.parliament.uk)

For now the to‑do list is practical. Decide which nights you would actually trade late, re‑run cashflow for those dates, confirm supplier capacity for late‑kick‑off stock, and coordinate with neighbours on dispersal. The sector asked for fewer hurdles on rare national moments; it now has them. The venues that benefit most will be the ones that pair longer hours with disciplined operations.

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