New analysis shows changes to licensing in London could boost the economy by billions as Mayor celebrates opening of latest al fresco West End dining hotspot

• City Hall analysis shows that changes to licensing in London to support businesses and extend opening hours could boost the economy by billions, and support businesses, jobs and communities
• Al fresco dining and drinking returns to restaurants and pubs on St Martin’s Lane in the heart of the West End thanks to Mayor’s Summer Streets Fund
• New schemes in Brixton, Leyton, Shoreditch and Westminster are just the start for London, with the Mayor set to receive new licensing powers from Government
• Mayor declares he wants al-fresco dining to be permanent feature across London.

The Mayor of London, Sadiq Khan, has today welcomed the return of al fresco dining and drinking to St Martin’s Lane, in the heart of the West End, and declared he wants al-fresco dining to become a permanent feature for the capital as new analysis shows that Government changes to licensing in London could help boost the economy by billions.

The Mayor is set to receive new licensing powers from the Government in the coming months and new analysis published today by City Hall reveals that if London’s licensing more closely resembled New York City, where the Mayor can influence rules and regulations through changes to state laws and setting licensing priorities, it could boost the capital’s economy by around £2bn a year. The changes, in particular to licensing of the restaurant and hospitality industry, could help to support businesses and extend opening hours, increasing spending and creating more businesses across the capital.

Earlier this year the Government announced its intention to give new licensing powers to the Mayor which could allow Sadiq ‘call in’ powers to decide licensing applications of strategic importance such as for key nightlife venues, supporting more al fresco dining and cutting bureaucratic red tape.

Sadiq has already shown his commitment to increasing outdoor dining and extending opening hours to offer more choice to Londoners and help support businesses, and earlier this year launched his £300,000 Summer Streets Fund.

From today, a wide range of restaurants, pubs and cafes on St Martin’s Lane in Westminster are offering outdoor tables for food and drinks across the street, thanks to the Mayor’s funding.

The road in the heart of the West End offered a popular al fresco programme during the pandemic and will again be lined with Londoners and visitors enjoying dinner and drinks. The road will be car-free from 11am-11pm every day until the end of October.

It follows the successful launch of other programmes in Brixton, Leyton and Shoreditch, which have been supported by the Mayor’s Summer Streets Fund.

Creating new al fresco dining spots is one of many initiatives by the Mayor to support London’s hospitality, leisure and tourism sectors. Earlier this year he created an independent Nightlife Taskforce to help boost the capital’s life at night. These industries are critical to the success of the capital, as well as growth nationally, generating more than £46 billion every year* and accounting for one in 10 jobs in London. In the last year, the number of late-night hospitality sites in London has grown faster than anywhere else in the country.

The Mayor of London, Sadiq Khan, said: “I’m delighted that al fresco dining and drinking has returned to St Martin’s Lane in the heart of the West End, with Londoners and visitors once again lining the street to enjoy the finest food and drinks.

“I’m determined that our fantastic Summer Streets schemes are just the start of what’s to come for our capital and want to see al-fresco dining become a permanent feature of our nightlife across London.

“Our new analysis shows that changes to licensing can boost our economy by billions each year and I’m committed to working with councils to support our restaurants, bars and cafes and unlock the full potential of our capital’s nightlife, as we build a better London for everyone.”

Mark Williams, Deputy Chief Executive of Heart of London Business Alliance, said: “St Martin’s Lane is an iconic street in London’s West End, renowned for its rich theatre and hospitality offer. This opportunity to increase al-fresco dining will increase the street’s appeal and enable even more people to enjoy it. Not only will the street’s businesses benefit, which is particularly welcome in this challenging trading environment, it’s likely that the ripple effect will go beyond the street itself.”

Westminster Councillor Max Sullivan, Cabinet Member for Streets, said: “Westminster Council has granted almost 1,000 licences providing nearly 15,000 seats for outdoor dining across the city. Launching today, both al fresco dining on St Martin’s Lane and our new evening market on Rupert Street act on the recommendations of the council's Westminster After Dark report. Today's launches help to strengthen central London's world-class hospitality industry and diversify the nighttime economy. The temporary scheme will give a taste of and provide learnings for the permanent plans for St Martin’s Lane with al fresco dining and other people-friendly changes, which the council has been working on with residents, businesses, theatres in recent years.”

Kate Nicholls, Chair of UKHospitality, said: “A fit-for-purpose licensing regime that supports and incentivises businesses to invest and innovate is crucial to a thriving hospitality scene in the capital, and I'm pleased that the Mayor is taking the lead on this through his backing of al fresco dining. I have high hopes for positive changes to licensing in London in the near future, and for businesses more widely following the Government response to the licensing taskforce reforms. Hospitality is absolutely critical to London's economy and I look forward to continuing to work with the Mayor on delivering positive change for the sector.”