Consumer group says law ‘another nail in coffin’ for local breweries
A consumer group has hit out at a “wasted opportunity” to modernise Northern Ireland’s alcohol licensing laws. It comes as the Communities Minister gave an oral statement to the Assembly on Tuesday, November 18, outlining his response to an independent review of Northern Ireland’s alcohol licensing system.
This included a review of the “surrender principle” which means a license has to be given up before a new pub or off-licence can open. The review, led by experts from the University of Stirling, found the “surrender principle” has seen pubs closing, and licences moving to supermarkets or off-licences.
It also found the current system “is doing little to protect or invigorate the pub sector as a whole” and means “the retail market for beer is dominated by a small number of non-NI based producers who often establish restrictive supply agreements.”
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Additionally, the review said Northern Ireland is losing pubs at a faster rate than elsewhere, while the current system means we don’t see a wide range of local, independent products on offer.
The independent review was required under section 23 of the Licensing and Registration of Clubs (Amendment) Act (Northern Ireland) 2021, which was published on 21 February 2025 and contained 26 wide-ranging recommendations. A number of the recommendations have been accepted or partially accepted by the Department for Communities. Others have not been accepted, or the Department believes they are already satisfied under the current regime.
Speaking after the Minister’s statement, Campaign for Real Ale Northern Ireland (CAMRA NI) said the Minister is proposing not to accept any of the independent review’s substantive recommendations on modernising the alcohol licensing system.
The consumer group’s director Ruth Sloan said: “This is a huge, wasted opportunity from the Communities Minister and shows a total disregard for the consumers this administration represents.
“Instead of working to modernise the industry in Northern Ireland he has chosen to side with giant multinational businesses which dominate our pub market and mean there is rarely a choice of decent beer and cider at the bars.
“With alcohol licenses still having to be ‘surrendered’ for up to £100,000 a time it makes it almost impossible to open a new independent pub, closes pubs in areas calling out for third spaces and community hubs as well as stifling innovation and growth by pricing out anything new or interesting.
“This decision just adds another nail to the coffin of micropubs, brewery taprooms, wine bars and other specialist venues that are thriving across GB and the rest of Europe yet cannot exist here due to the nature of these outdated laws.
“Instead we can only expand existing floorspaces and end up with huge pubs and groups of pubs, sharing their existing licences, that are often forced by restrictive agreements with big business so that they can only sell the same few drinks everywhere, with no options to provide the wonderful and innovative products being made by beer and cider producers here in Northern Ireland that locals want and tourists are actively travelling here to try.
“I’m calling on MLAs from all parties to urge the Communities Minister to think again and commit to modernising our alcohol licensing system so that consumers can have a decent choice of beer and cider in every bar here and our economy can thrive in this new and upcoming market on our own doorstep.”
In an Oral Statement to the Assembly, Minister Lyons said: “Alcohol is not an ordinary commodity, its sale is rightly subject to regulation through a licensing regime which dictates who can sell alcohol, where, when and in what circumstances.
“The purpose of these controls is to ensure that the right balance is struck between facilitating the responsible sale and consumption of alcohol and protecting public health, public safety and public order. In this way, the licensing regime also plays a role in assisting our hospitality sector, in terms of its sustainability and attractiveness to customers.
In explaining why reform of the surrender principle has not been accepted, the Minister said: “Our licensed premises are vital to the Northern Ireland economy. They support tourism, provide employment, and serve as important social spaces in our communities.
“That is why I have decided not to accept the authors’ recommendation for targeted reform of the Surrender Principle. These changes could have significant and unintended consequences on the economic viability of our hospitality sector at a time when many are operating below viability thresholds.
“However, this is not a rejection of progress. The report has also provided my Department with the opportunity to consider how the regime can be further improved and modernised.
“The role the licensing regime can play in supporting market diversity and innovation will also inform my Department’s response to recommendations on local producers’ licences introduced in 2022, that will be taken forward following the completion of a statutory review.”
Colin Neill, Chief Executive of Hospitality Ulster, welcomed the decision to retain the surrender principle. He said: “The decision to not accept recommendations for reform of the surrender principle is a welcome and pragmatic decision by the Minister, which provides certainty for an industry that has faced enormous challenges.
“The surrender principle remains essential to supporting an independent rich sector, providing stability for business owners and supporting wider public health goals. The recommendations of this report only added to the uncertainty felt by hospitality operators, risking investment, jobs and the long-term sustainability of our pubs and their rejection is good news for the industry.
“At a time when many pubs are struggling to survive, it is right that the focus should be on supporting those businesses, not on the hypothetical creation of new ones or expensive unnecessary quangos. This decision allows us to focus on the real issues that are threatening the survival of pubs across Northern Ireland, and it is not the lack of additional pubs.
“Our Ulster/Irish pub is world renowned for its diversity, culture and quality, providing opportunities for people of all ages, gender and background to enter the industry and become the owner of their own business, unlike many other countries which are dominated by large chains.”
Minister Lyons concluded: “This review has provided a valuable opportunity to reflect on how our licensing regime can evolve, but reform must be proportionate, evidence-led, and aligned with the needs of our communities and economy.
“I am committed to working with delivery partners, stakeholders, and industry representatives to ensure any changes are consulted on, fully impact assessed, and subject to meaningful engagement. In the meantime, we will focus on what can be done now, within the existing regime, to improve awareness, accessibility, and responsiveness. This includes ensuring that public health concerns are not just acknowledged but actively addressed.”
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