UK: The opposition has predicted chaos in the brewing industry

Many pubs could be forced to close temporarily as a result of their failure to comply with a complex new licensing regime. The opposition has predicted chaos in the brewing industry once the new rules come into effect, ePolitix.com published on July 27.

Theresa May, the shadow local government minister, said "as a result of the red tape and regulation imposed by the government, the new licensing laws look likely to cause chaos". The new rules make it possible for pubs to open round the clock but also impose stricter regulations on landlords.

Licensing minister James Purnell tells the FT that around 60,000 businesses are expected to miss next week's deadline for fast-track renewal of their right to sell alcohol under the controversial new regime.

The figure represents around one third of the total number of license holders although the minister said the level of applications is rising quickly. He claims the Licensing Act will come to be seen as a "good piece of legislation" in a few years' time.

But opposition parties say a third of the 180,000 licence holders in England and Wales will fail to meet the August 6 deadline. The Lib Dems, meanwhile, claim that licensees are delaying their applications as a result of the fees structure imposed by the government.

Lib Dem spokesman Don Foster said the government was guilty of a "big mistake" by making businesses pay the annual fees from the date their new licence was granted - which effectively creates a financial incentive to delay the licence application until the last minute.