Kate Nicholls OBE and Mike Kill gave evidence.

We have Kate Nicholls OBE, the chief executive of UKHospitality, in the Committee Room with us, and we are joined via Zoom by Mike Kill, the chief executive of the Night Time Industries Association. We have until 3.40 pm for this oral evidence session. Will the witnesses please introduce themselves for the record?

Kate Nicholls:

I am Kate Nicholls, chief executive at UKHospitality, the national trade body for hospitality businesses right the way through from a single-site independent pub, bar, nightclub, restaurant or hotel to the largest national chains. Our membership also includes some large event venues and exhibition centres.

Mike Kill:

My name is Mike Kill. I am the chief executive of the Night Time Industries Association, which represents businesses that operate in the ecosystem between 6 pm and 6 am. Broadly, we represent pubs, bars, restaurants, clubs, live music venues, events, casinos and the like that operate within that period.

Good afternoon to you both. Thank you very much for appearing before the Committee today: you have a particularly valuable insight and we are looking forward to hearing from you.

We heard earlier from Mayor Andy Burnham, who was very positive about the impact that these measures are already having on the hospitality sector in Greater Manchester. I want to get a sense of whether that accords with your analysis of the impact of these measures on the hospitality sector nationally. It was very positive to hear the good news story from Greater Manchester, with the way it has been embraced by the hospitality businesses there, but it would be good to get your sense of whether there should be the same approach right around the country.

Kate Nicholls:

I do not think anybody in the hospitality sector or the wider live music and events sector could have experienced the recent incidents we have had—not just in Manchester, but in London—and just sat back and waited for legislation to ensure that our customers, our public and, most importantly, our staff were safe. Since those events, and since the learnings coming out of the inquiry, we have been working collectively with our members to look at how we could take forward this protect duty within the context of our existing licensing regime—the Licensing Act 2003 puts on us a legal obligation to ensure we take account of public safety. As part of that, businesses in city centre locations, in particular, have worked with their local police forces and counter-terrorism to ensure that steps are already being taken to look at measures that could be encompassed within this duty.

I should also say that we are working to ensure that that is taken right down to the very smallest venues and that lessons are learned there, so that we have a basic level of security within the public realm. While Manchester is leading the way, quite unsurprisingly, we are working hard to make sure that we are doing the same thing and carrying out those lessons and delivering that in practice.

Q How might the increased security requirements impact staffing for night-time venues, particularly with training and retaining part-time or seasonal workers? I think this question might be better for Mike.

Mike Kill:

With regard to the businesses that we represent—particularly some of the small and medium-sized enterprises and businesses that are slightly smaller and, as you can appreciate, on the lower tier—there is, without a doubt, a resonating concern around the cost base given the current economic climate.

A key area of concern for us, because the industry has a high turnover of staff, is that that continual training of staff within that high turnover is going to represent a level of cost. When we looked at things like the impact assessment, we felt that without a doubt, given the infrastructure, systems, processes and considerations at either level—whether on the standard or the enhanced tier—there is a concern that this will be onerous cost-wise, particularly around staffing levels. There is also concern with regard to certain shifts around things like the national living wage, which will drive that forward as well.

From the perspective of the industry, there is still a resonating concern that there will be an undue burden on small venues and community groups in particular, which, in the current economic climate, that could lead to further challenging situations. That is not to take away from the importance of safety; however, the reality is that we have to be honest about our position moving forward. So there are resonating concerns, but people are taking positive steps forward.

Just to reiterate and support Kate’s comments, there has been a very positive reaction to the Bill—it is very well supported. I believe the right action to move forward is happening across the sector as a whole at varying levels, but Manchester is without a doubt leading that, given the circumstances represented there.

If there are no further questions from members of the panel—

Sorry, Ms McDonagh—I was going to ask a question.

Oh, gosh!

Q No, it is my fault. I wanted to just ask a quick question about penalties. Do our witnesses have any views on what is outlined around penalties?

Kate Nicholls:

We do have some concerns about what is outlined around penalties. There are some gaps in the legislation. We know there will be secondary regulations and that there will be detail coming through in the guidance about the remit of the inspectors and the enforcement powers contained in the Bill, the level of fines and the powers available to people. We recognise this is a very serious situation, but there is an interrelationship between the Licensing Act, where you can have accelerated closure powers that could remove a licence entirely, and this piece of legislation, as well as the very high fines that could come through for the enhanced tier, particularly for those who are globally-based businesses. They are quite—eye-watering, shall we say?

There is a need to work with the industry. We appreciate that the Bill team and Ministers have worked with us to make some flexibility changes to the legislation as it has come through. We would also welcome the opportunity to work on this area, particularly around fines and the scaling of fines, the penalties that could be imposed, the way powers could be used, and the checks and balances around that enforcement mechanism, particularly to do with appeals and the ability to trade pending appeal, because there is a significant impact on a business if it is closed.

Are there any other questions for the panel? I want to ensure I do not miss anybody again. If there are no further questions from Members, I thank the witnesses for their evidence.

I understand that we may be so far ahead of ourselves that not all the witnesses for the next panel are here.

Dame Siobhain, may I propose that we change the order of the panel of witnesses, while remaining within the provisions of the programme order?

Does anyone in the Committee object? No.