Later open hours to help London pubs and clubs under 'new powers' that could come to West Midlands

London councils that block pubs and clubs from opening later could see their decisions overturned by Sir Sadiq Khan under new powers from the Government.

Ministers are attempting to boost the hospitality industry by allowing the London mayor to “call in” licensing decisions for key nightlife areas in the capital.

The move could see bars open later and more al fresco dining in London and, if successful, could be extended to other parts of the country such as Greater Manchester or the West Midlands.

Chancellor Rachel Reeves said the change would ensure the hospitality industry had “the conditions to grow” and was not “tied down by unnecessarily burdensome red tape”.

The announcement comes at a time when confidence in the hospitality industry has hit its lowest point in two years as rising wage costs, national insurance contributions and business rates hit the sector this month.

UKHospitality, the industry trade body, has said the combination of rising costs would amount to a £3.4 billion hit for the industry, and has called on the Government to come up with a plan for hospitality.

Deputy Prime Minister Angela Rayner said: “Our pubs, restaurants and live music venues are the beating heart of our cultural life, so it is vital they are given every chance to survive and thrive.

“That’s why it’s time to give the Mayor of London new powers to back the capital’s pubs and clubs, as part of our plan to give mayors the tools they need to drive growth.

“Too often, we have seen the complaints of a vocal minority of objectors promoted over the need for our country to grow – we are determined to change this.”

Sir Sadiq himself said the extra powers would “allow us to do more to support the capitals pubs, clubs and music venues”.

He added: “This is more evidence that we now have a Government that wants to work with the capital and recognises the role that we can play in delivering economic prosperity and support Londoners as we build a better London for everyone.”

The decision follows concern that London’s councils have been too cautious, restricting the capital’s nightlife by rejecting applications for things such as extended opening hours.

A source close to the mayor said: “Over recent years, London’s pubs, restaurants, clubs and music venues have been seen as a problem to be managed, rather than as a vital part of London’s economic and social scene.

“From al fresco dining, to late opening hours, to the impact of burdensome licensing conditions, we need to look at how we can support our venues, not work against them.”

But it also follows an appeal by London’s councils for a greater say in how the capital is run.

London Councils, the body which represents the 32 boroughs, called on Thursday for a new power-sharing arrangement with the mayor, giving them a formal say over the capital’s strategic direction.

Conservative shadow business secretary Andrew Griffith said: “The hypocrisy of this Labour Government is staggering.

“The Government claims it is looking to slash red tape on business whilst doing the exact opposite, with their smoking ban proposals, scrapping of takeaway pints, recycling tax and attack on free speech in venues all set to make life harder for our publicans – and that’s all before the impact of their jobs tax and Employment Rights Bill kicked in.

“But with Labour-run Westminster Council trying to enforce ‘quiet spaces’ on the capital’s night-time economy, and Sadiq Khan’s former night tsar overseeing over 3,000 venue closures, it is clear Labour does not understand business.

“Only the Conservatives will stand up for their interests.”

A spokesperson for Westminster City Council, the country’s largest licensing authority, said: “Westminster has the most pubs and clubs of any local authority so we already have extensive expertise in supporting business to thrive while balancing the views of local people and the police.

“We grant the vast majority of licensing applications which are only refused where safety concerns are raised by the police or significant disruption is likely.

“We need to see the proposals in more detail before commenting further.

“Local authorities and licensing professionals should be represented on any working group.”