Last Orders! The Reform of the Licencing Law and why it may cost the consumer more

Reforming the Jersey alcohol licensing law has taken over 16 years of active discussion and multiple failed attempts. While the previous legislation (Licensing (Jersey) Law 1974) remained largely unchanged for over 50 years, the specific effort to modernize the system and dismantle the Licensing Assembly began in earnest around 2009. It has only just been approved now!

Bailiwick Express reports that

"Jersey’s long-standing licensing assembly will be dismantled, with powers over alcohol licensing handed over to government regulators in one of the most significant upheavals of the island’s licensing system in decades."

"The package of reforms, brought forward by Economic Development Minister Kirsten Morel, aimed at “reducing complexities” and speeding up the process for businesses seeking licences."

"Under the new law, the Licensing Assembly will be abolished, with oversight passing to the government’s Regulation Directorate."

Good news? Perhaps not for the consumer. The words "government’s Regulation Directorate" suggest bureaucracy and extra costs, despite it being an existing body (albeit unknown to most of the population). And the suggestion would not be wholly wrong!

While the reform aims to be cost-neutral for the taxpayer, it will lead to significant changes in fee structures.

The new regulatory system is intended to be funded by the hospitality and retail industry through licence fees rather than general taxation. In simple terms, while the hospitality industry has always paid for licences, the old system was essentially a subsidised service, whereas the new one is a commercial-style regulatory model. 

For decades, the Licensing Assembly (made up of Jurats and the Bailiff) operated through the Royal Court. Because the Jurats are volunteers and the court's administrative costs are bundled into the general judicial budget, the "true" cost of running the licensing system was unquantified and largely covered by the taxpayer.

Under the new system this will be moved to the "Regulation Directorate". This is a government department with paid staff, digital infrastructure, and operational overheads. To avoid using general tax money, the new law sets fees at a "cost recovery" level. Essentially, the industry is now paying for the full salary and desk of the person processing their application.

Expect an expansion of civil servants within the directorate, unless I am being unduly cynical. Official Ministerial Decisions signed in early 2026 explicitly state there are no financial or staffing implications resulting from the transfer of licensing duties. I'll believe that if it is true in 2027. 

For instance, handling the "centuries-old" volume of applications previously managed by the court system may require additional administrative and technical staff. The Directorate must now publish all applications online and provide formal explanations to Parish Constables if their decisions differ from local Parish Assembly views, adding a new layer of mandatory administrative work.

Within the existing system, fees have been largely "static" since 2006. A large supermarket pays the same flat fee as a small corner shop for an off-licence, which doesn't reflect the regulatory effort or their market share. 

The government is shifting the burden toward off-licences (supermarkets and liquor stores), which now account for roughly two-thirds of the alcohol market. This allows them to keep fees for struggling hospitality venues (pubs and restaurants) more stable while still funding the new Directorate's workload.

While the Regulation Directorate’s goal is to be "cost-neutral" for the government, the retailer's costs are going up, and those are usually passed straight to you. So expect to pay more at the supermarket - although this may reduce binge drinking, so is not entirely bad news for health.

As of early 2026, existing licence fees generate approximately £260,000 annually for the department; the Directorate expects to handle an additional 30–40 new applications per year under the expanded regime. Fees have not seen a standard inflationary increase since 2007. The Regulation Directorate will set fees to achieve "full cost recovery," meaning the industry must pay for the Directorate's staff, digital systems, and enforcement.

But on the positive side, many businesses currently pay multiple fees for different categories (e.g., a "Taverner's" licence plus an "Entertainment" licence). The new system collapses these into just three categories (On-licence, Off-licence, and Events), which may reduce total individual payments for some venues even if per-licence rates rise.