SCRAP TABLE TAX TO SAVE PUBS AND PINTS IN THE SUN, CONSERVATIVES DEMAND

• The Conservative Environment Network, alongside Conservative MPs, has launched a new campaign and petition to scrap costly pavement licences - dubbed a “table tax” - which force pubs, cafés, and restaurants to pay to put tables and chairs outside. 

• As food and drink prices increase, business rates increase, and the new minimum wage bites, the table tax is an unnecessary cost and burden for the hospitality sector.

• The government can prove it isn’t anti-fun by scrapping the table tax, allowing businesses to boost their covers, bring people back to the high street, and let England enjoy a pint in the sun ahead of the World Cup this summer.

The Conservative Environment Network, alongside Conservative MPs Blake Stephenson and Jack Rankin, has launched the ‘Scrap the table tax’ campaign, which calls on the government to put an end to pavement licences for pubs, cafes, bars, and restaurants. The campaign has also launched a petition calling on the British public to show its support for British pubs, cafes, bars, and restaurants. 

Councils require hospitality businesses to apply and often pay for a pavement licence to put tables and chairs on the pavement in front of their premises. Given the pressures the hospitality industry faces, from inflation and rising business rates, CEN’s campaign warns that this places unnecessary burdens and inconvenience on the hospitality industry, and risks being used simply as an extra revenue raiser for councils. As long as businesses ensure pavements remain safe and accessible, charging a fee and requiring a license is unnecessary. 

With summer approaching, consumers want to sit outside in the sunshine to enjoy their food and drink. This licence punishes pubs and restaurants for offering them a place to do this, limiting their potential customer footfall during a period of intense pressure for the industry.

If scrapped, it will have additional environmental and community benefits, as it encourages people to sit outside and helps turn streets into communities for people to cherish.

That is why CEN has launched its ‘Scrap the table tax’ campaign and this petition to support hospitality businesses and protect the Great British tradition of enjoying a pint in the sun ahead of the World Cup this summer.

Egregious examples of councils misusing pavement licences:

• Westminster City Council only grants licences for 3 - 6 months at a time, with hospitality businesses having to pay £350 for every renewal

• Watford Borough Council has created a tiered system where businesses pay different rates based on how many chairs they have, punishing them for increasing their customer footfall (1-6 seats = £100; 7-11 = £200; 12+ = £350)

• Manchester City Council has created a tiered system, with different conditions which determine whether licenses are granted for 6, 12, and 24 months.

Timeline of policy:

Before the pandemic, through the Highways Act 1980, businesses could apply for a pavement licence but application fees were very variable and there was a minimum 28 day consultation period. The Covid-era Business and Planning Act 2020 temporarily streamlined the process, with businesses able to secure a one-year licence within 14 days and by paying a £100 fee. 

Then, the Levelling Up and Regeneration Act 2023 made this system permanent, but with important changes. Through these changes, the ‘table tax’ has taken shape, with councils now able to charge up to £500 for a new licence application, £350 to renew, and licences able to last up to two years 

CEN has warned that this system is adding unnecessary burdens onto hospitality and risks being used by cash-strapped councils solely for revenue-raising purposes. It has become a patchwork of rules, paperwork, and fees that vary widely depending on postcode. Although some councils, such as Wandsworth and Blaby, rightly do not charge a fee for pavement licences, most local authorities charge the full amount, discouraging businesses from making the most of outdoor space.

Kitty Thompson, Head of Campaigns at CEN, said: 

“When the weather is nice, people inevitably want to sit outside in the fresh air. Hospitality businesses should be able to provide the tables and chairs for their customers to do this. 

“But 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. There is no need for councils to burden themselves and local businesses with the bureaucracy of applying for a pavement licence. 

“This is not just a pro-business argument. It is an environmental and communitarian one too: sitting outside is not just a lifestyle preference, it is an essential tool for turning streets into communities.

“As long as the pavement remains safe and accessible, there should be no barrier to businesses’ having outdoor seating. We need to scrap what is essentially a table tax.”

CEN MP Blake Stephenson said: 

“Labour’s anti-business agenda is killing our high streets and stifling economic growth. Our cafés, pubs, and restaurants are facing eye-watering business rates, rising national insurance contributions, and overbearing red tape brought in by this government. 

“We should be doing everything we can to help our hospitality industry thrive. Instead, it is being burdened with additional costs and bureaucracy, even just to put a few tables and chairs outside. The government should scrap the table tax to show that it backs British businesses.”

CEN MP Jack Rankin said: 

“Overbearing red tape and anti-growth measures are hampering the Great British pastime of enjoying a pint in the sun. 

“It is ridiculous that our pubs, bars, cafes, and restaurants have to apply and pay for a licence to put a few tables and chairs outside. With the World Cup coming up this summer, the government can show it is on the side of hospitality businesses and their customers by scrapping the table tax.”