Calls Grow To Abolish Pavement Licences In Hospitality

Calls Grow To Abolish Pavement Licences In Hospitality
Charlotte Baroukh

Charlotte Baroukh

Tax Expert @ Pie

3 min read

Updated: 6 Apr 2026

3 min read

Updated: 6 Apr 2026

Hospitality businesses across the United Kingdom are calling for the abolition of pavement licence fees, as concerns mount over the financial challenges facing high streets. The fees, which are charged by local councils for the placement of outdoor tables and chairs, have become increasingly contentious.


Conservative MPs and business advocacy groups argue that these costs hinder pubs, restaurants, and cafés, particularly as the sector continues to confront ongoing economic pressures.


The issue has sparked renewed debate ahead of the busy summer season, with many in the industry seeking urgent reform to boost local economies and social activity.

Overview of Pavement Licence Fees

Pavement licences, introduced to allow hospitality venues to place seating and tables outdoors, require businesses to apply to their respective local authorities, often incurring a fee.


Charges for a new application can reach up to £500, with renewals costing up to £350, and licences are typically valid for up to two years.


While some councils waive these fees, the majority enforce the full charges, placing a varied financial burden on businesses depending on location.

Political Pressure for Policy Change

Calls for the repeal of pavement licence fees have intensified, with Conservative MPs describing the current system as restrictive and damaging to local economies.


Blake Stephenson, a Conservative MP, stated that the fees contribute to an ‘anti-business agenda’ that affects high streets and stifles economic growth.


He highlighted that, beyond pavement licences, hospitality businesses must also contend with increased business rates, rising insurance contributions, and complex regulatory requirements.

Financial Burdens on Local Businesses

Small businesses have long argued that the costs and administrative requirements of pavement licences deter them from providing outdoor seating, which has become increasingly popular with customers.


According to sector representatives, these additional charges are particularly burdensome amid ongoing inflation, rising wage costs, and increased energy bills.


Industry advocates suggest that removing this so-called “table tax” would support local jobs and help revive high street hospitality after challenging trading periods.

The Conservative Environment Network Campaign

The Conservative Environment Network (CEN) has launched a campaign to abolish pavement licence fees, arguing that the charges are unnecessary so long as public spaces remain safe and accessible. Kitty Thompson, Head of Campaigns at CEN, stated,


“The small businesses that are the lifeblood of our high streets must pay their council for the privilege of providing what their customers want. This is a ridiculous state of affairs.”


The group also emphasises the community and environmental benefits of outdoor hospitality, describing it as instrumental in fostering neighbourhood connections.

Local Authority Discretion and Fee Variations

Although national legislation permits councils to charge up to £500 for new applications, local authorities retain discretion over the actual amount charged. Some councils, recognising the struggles of local businesses, do not impose fees at all, while others levy the maximum allowed.


The fragmented fee landscape has prompted criticism from business groups, which argue for consistency and the removal of financial barriers to outdoor trading.

Final Summary

The debate over pavement licence fees reflects broader concerns about the viability and future of the UK’s hospitality sector.


With high streets already under pressure from increased costs and regulatory measures, many business owners and political voices argue that scrapping pavement licence charges could provide a much-needed boost.


The issue remains a focal point as legislative and budgetary decisions are considered by local councils and central government.


For those interested in following the latest policy updates and business trends, platforms such as the Pie app offer timely insights and analysis for stakeholders in the sector.

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