'Tis the Season — What to look out for in Scottish licensing law in 2026

Scottish licensing specialist Caroline Loudon reflects on recent events affecting the hospitality sector and considers what lies ahead in licensing.

In hospitality, December rushes by, bringing with it additional festive hours, thoughts of responsible promotions and the imminent arrival of Christmas and New Year celebrations. 2026 is just around the corner… what’s next for hospitality and licensing?

A new alcohol marketing consultation

Back in 2022-23, the Scottish Government’s public health strategy consultation on alcohol marketing hit the headlines due to its proposals for stricter controls on advertising, with outdoor channels, retail, branding and merchandising, media and digital, and sports and cultural sponsorship all targeted. It was also noteworthy for the sheer volume of responses to the consultation itself: a record-breaking number of more than 3,000, three-quarters of which were opposed to the proposals. Views were polarised, and the Scottish Government agreed to look at proposals again.

Public Health Scotland carried out an additional review this year, the outcome of which largely supported original contentions that exposure to alcohol advertising did lead to drinking in young people and increased consumption patterns. 2026 will see the launch of a further consultation on this important topic, with updated proposals tabled. Key considerations are likely to include sports sponsorship and advertising, as well as out-of-home advertising such as public digital screens and adverts on transport and billboards.   

In a similar vein, Q1 of the new year is expected to see the launch of the Scottish Government’s Population Health Framework: Alcohol and Drugs Plan.

The plan is expected to signal a renewed focus on ‘prevention’ and to include a comprehensive review of alcohol marketing practices, as well as an evaluation of the current minimum unit price (MUP) to ensure it remains ‘effective’ in reducing harm – potentially hinting at policy shifts aimed at tightening promotional controls and reinforcing pricing strategies.

Although the document may not require immediate changes, it will be interesting to see the conclusions that are reached, as a useful bellwether for the direction the Scottish Government may take in the coming years.

Budget impacts

The financial pressure on the hospitality sector is well known and documented, but it has increased again. The sector is still coming to terms with the impacts of the recent Autumn Budget, with businesses having to contend with higher operating costs driven by wage increases, National Insurance contributions and rising business rates/poundage, which will challenge profitability.

Price pressures from alcohol duty adjustments and the extension of sugar tax are likely to further strain margins. All the more reason to go out and eat, drink and be merry this festive season in support of the amazing and unique hospitality venues that we are so lucky to have all over Scotland.  

Scottish elections

Ultimately, it is worth noting that all policy decisions in Scotland will be taking place against the backdrop of looming Holyrood elections, set for May 2026. Without making any predictions about who is out and who is in, it goes without saying that close attention will be paid to the outcomes of this.

A major shift in power could tear up the original script and completely change the direction of licensing and hospitality sector policy.

The World Cup

How the nation cheered the heroics of the Scotland men’s football team on that Tuesday night at Hampden in November. While certainly giving all Scots a boost, those operating in the hospitality sector were particularly jubilant – they can now look forward to a hopefully busy summer. The World Cup period should be marked by increased footfall at most venues, and a much-needed benefit to revenue felt.

One potential obstacle is the time difference with North America, where the tournament is taking place – some matches will be beginning as late as 2am UK time. Operators will be hoping that the Scottish Government will encourage licensing accommodations to help everyone make the most of this opportunity and indeed, it has already indicated it will work with local licensing boards to ensure football fans can “enjoy and celebrate”.

Potential extensions to pub opening hours, the creation of ‘fan zones’ and temporary licensing statements for the tournament’s duration are among the measures floated by industry bodies including the Scottish Beer and Pub Association and the Scottish Licensed Trade Association.

Occasional licenses review

The new year is expected to see a new consultation on the use and price of occasional licences. These temporary permissions – which last for up to 14 days and are vital for events like festivals, weddings and pop-up venues – are under review to address concerns about their low £10 fee and the increasing use of consecutive licences to bypass full premises licensing.

The consultation may propose higher fees to cover administrative costs and introduce stricter limits on how often and for how long occasional licences can be used by a single applicant or premises. Those relying on occasional licences for regular trading may need to reconsider their business models. As ever, staying engaged with the consultation and responding to it will be crucial to help shape practical, workable regulations for the sector. 

We would be pleased to see an ‘extended’ occasional licence for a longer period of time – three months, for example – which could be granted in exceptional circumstances and reduce the volume of processing for licensing teams across Scotland.

In conclusion, 2026 will not be without its difficulties, but there is certainly room for optimism as well. The challenges of 2025 will extend well into the new year, but events such as the World Cup will offer sector operators major – and much-needed – relief. Active participation with consultations and engaging key stakeholders will be as important as ever, as the sector strives to find its way forward.

Merry Christmas to all and a very happy New Year.

Written by Caroline Loudon, a partner in TLT LLP’s licensing team.