Licensing officials at Leeds City Council are seeking to close a legal loophole they fear is being exploited by criminal gangs to continue selling illicit tobacco, vapes and alcohol.
Investigations by Leeds City Council’s licensing officers, working alongside colleagues in public health and West Yorkshire Trading Standards, found organised crime groups could use a gap in the Licensing Act 2003 to sidestep enforcement action when premises are under investigation for suspected illegal activity.
Under the loophole, a named licence holder can quickly transfer the licence to an associate, effectively resetting the legal process and allowing unlawful sales to carry on without interruption. After uncovering the issue, Leeds City Council’s licensing committee raised its concerns with national officials, with the government now pledging to consider the authority’s recommendations as part of its ongoing review of the Licensing Act 2003.
As part of its investigation, the council also contacted local authorities across the country to gather evidence and assess whether the problem was being seen elsewhere. That work suggested the issue is widespread, with 70 per cent of respondents saying they had direct experience of licence transfers taking place during enforcement action. A further 98 per cent said they supported a change in national policy.
The Licensing Act 2003 governs activities including the sale of alcohol, the provision of entertainment and late-night refreshment. In October last year, the government launched a call for evidence as part of a wider effort to reform the system and create a framework it described as more modern, proportionate and streamlined.
In its broader submission to the review, Leeds City Council also called for public health to be added as a licensing objective, allowing alcohol-related harm to be considered when licences are granted in areas deemed to be at risk.
Councillor James Gibson, chair of Leeds City Council’s licensing committee said:
“It’s fantastic that, due to the diligence of our cross-party licensing committee members and the hard work of officers, we have exposed what could be a potentially dangerous loophole in the law.
“Our national survey had an overwhelming response from over 240 organisations across licensing, trading standards and public health. The findings were deeply concerning and provide compelling evidence to urgently reform the Licensing Act 2003.
“I’d like to thank our staff and partners here in Leeds, and across the country, for their work in highlighting and tackling this pressing matter.”
Councillor Debra Coupar, Leeds City Council’s deputy leader and executive member for resources said:
“Leeds has led the way in calling for urgent reform on this issue, reflecting the strength and commitment of our ongoing partnership work across the city to support a robust licensing system.
“While no decisions or legislative changes have yet been announced, we stand ready to support national efforts to modernise the Licensing Act 2003 and believe our recommendations are essential to safeguarding the public interest and upholding all legal objectives.”
Victoria Eaton, Leeds City Council’s director of public health said:
“The consequences of criminal gangs being allowed to continue their illegal operations puts the health of people across Leeds, and the country, at risk.
“It’s really important that we urgently close this loophole and stop these gangs from evading enforcement, ensuring the trade of illicit tobacco, vapes and alcohol is effectively and swiftly removed from our streets and communities.”
Linda Davis, Head of West Yorkshire Trading Standards Protecting Communities said:
“We know that due to loopholes in the legislation, often criminal groups are attempting to transfer alcohol premises licences to new, sometimes fake, owners during reviews and appeals, effectively resetting the enforcement process. This enables the shop to continue to trade, selling illicit tobacco and vapes, even after enforcement visits and seizures have taken place.”
Some proposed changes have already been announced by the government, with further measures expected following additional consultation. The council says closing the loophole would strengthen enforcement powers and help prevent criminal operators from exploiting the licensing system to maintain illegal trade.
Councillors and officers hope the issue will now be addressed through national reform, amid growing concern over the impact illicit tobacco, vape and alcohol sales can have on communities, legitimate businesses and public health.
