Changes to the 'mandatory code' for licensed premises come into force from 1st October 2014, as outlined in updated Home Office guidance. The amendments include stronger wording prohibiting 'irresponsible promotions' and ensuring customers are made aware of smaller measures being available.
The five mandatory licensing conditions now stipulate:
- various requirements preventing 'irresponsible promotions'
- an age verification policy must be in place
- mandatory provision of free tap water
- the mandatory provision and now promotion of smaller measures such as 125ml wine measures
- prohibiting the sale of alcohol below 'cost' (defined as the level of duty plus VAT)
A key change includes the requirement for on-trade premises to make customers aware of smaller measures 'on menus, price lists or other printed material'. Where customers do not specify a size, they must be 'made aware of the range of measures available' either 'verbally or by ensuring they have seen the printed materials'.
Previously the code was worded so that premises 'shall take all reasonable steps' to stop irresponsible promotions, but now premises 'must' ensure promotions such as drinking games, free drinks or other activities that might undermine the licensing objectives are not carried out. A previous separate condition banning alcohol being poured directly into customers’ mouths has now been integrated within the 'irrepsonsible promotions' condition.
The 'mandatory code' has previously been criticised by sections of the on-trade who have lost significant ground to off-trade sales but have greater regulatory responsibilities. This week the Morning Advertiser questioned the timing of the guidance 'just weeks before the law changes'. It also highlights concerns that a new factor in considering 'irresponsible promotions' could be a 'significant increase in customers', which some state is core to all promotions. The guidance state this as one of several considerations of what 'irresponsible promotions' might include.
The below cost ban is almost certainly not going to affect any on-trade sales, especially as it is unclear if any off-trade sales are even affected. It was estimated the ban would only affect 0.7% of alcohol units sold, whilst a recent Dispatches report found no drinks below the thresholds. The below cost ban was introduced as part of the mandatory code earlier this year following the Government's u-turn on minimum unit pricing.
All Home Office licensing guidance can be accessed here, including revised guidance issued under section 182 of the Licensing Act 2003.
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