24 Jun 2025
By Karen Gatherum, Associate, Licensing law, Gilson Gray
Why modern licensing law in Scotland is more than compliance – and how legal foresight drives growth in regulated sectors.
The New Era of Licensing: From Compliance to Strategy
For too long, licensing has been viewed by many businesses as a tick-box exercise. In other words, an operational necessity dealt with only when expansion or enforcement demands it. But across Scotland, we are beginning to see a shift. Smart operators are realising that licensing is not just about staying within the rules; it is a tool to drive strategy, reputation, and ultimately, growth.
The hospitality and leisure industry in Scotland is governed primarily by the Licensing (Scotland) Act 2005. Savvy businesses are planning ahead for premises licences, occasional licences, and even tailored conditions that align with their brand experience including applications for extended hours to specific entertainment permissions and this is where strategic licensing is critical
We are advising clients to approach licensing decisions as they would financial forecasting or ESG reporting. Acting proactively, aligning licensing to business goals, and embedding licensing into risk management frameworks.
Regulatory Flux: Why Static Licences Can Sink Agile Companies
Scottish businesses are facing an increasingly fluid regulatory environment, particularly in emerging sectors like low-carbon energy, short-term lets, and adult social care.
The introduction of Short-Term Let Licensing under the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022 caught many operators off-guard. It’s a perfect example of how regulatory shifts can instantly turn a previously “compliant” business into one operating unlawfully. Local authorities across Scotland now operate with different application windows, conditions, and renewal cycles, demanding tailored legal strategies for hosts, platforms, and investors.
Similarly, in the alcohol sector, Licensing Boards have varying interpretations and policies, and it can be increasingly complex for business owners trying to navigate their expectations during renewals or variations. Staying static in your approach can mean losing ground to more agile, better-advised competitors.
At Gilson Gray, we are helping clients anticipate these shifts, not react to them, by auditing existing licences and mapping regulatory changes against their future operations.
Global Expansion Meets Licensing Bottlenecks
Scotland is a fertile ground for international businesses, particularly in sectors like food & drink, tourism, renewables, and fintech. But licensing remains a sticking point in cross-border expansion.
For example, a global food chain opening in Glasgow may assume a one-size-fits-all UK licensing process. In reality, Scotland has its own licensing regime, with 32 individual Licensing Boards, each applying national legislation with local policy twists. This can delay market entry if not properly managed.
Similarly, energy and environmental firms looking to capitalise on Scotland’s green agenda often overlook the need for specific licences or permits under SEPA (Scottish Environment Protection Agency) frameworks, particularly around waste, abstraction, or emissions.
Licensing isn’t just a local issue, it can be a barrier or bridge to Scottish market success. We work with firms to streamline this entry, ensuring their licensing aligns with operational ambitions from day one.
AI, Automation, and the Role of the Licensing Lawyer
Technology is rapidly transforming compliance functions. Online licensing applications, document automation, and digital tracking are increasingly common across Scottish councils and regulatory bodies.
But despite this digitisation, licensing law is more nuanced than ever. For example, submitting an alcohol premises licence online is simple, negotiating with the Board on overprovision arguments or community objections is not. Similarly, short-term let operators may be able to apply digitally, but understanding licensing conditions, conditions around planning use class, antisocial behaviour enforcement, and insurance requirements still demands human judgment.
At Gilson Gray, we are embracing technology to make the process efficient, but we are doubling down on our advisory role, guiding clients through the local politics, reputational risks, and interpretive grey areas that technology can’t handle.
What General Counsel Want: Licensing as Risk Intelligence
More in-house counsel are turning to their legal partners not just for application support, but for strategic insight. They want to know how a licensing approach affects M&A readiness, operational reputation, or investor scrutiny.
We see this in sectors like hotel groups, where changes in company ownership and directors and local authority licensing must be precisely aligned to ensure they continue to operate legally. Alternatively, in hospitality transactions, where a lapse in personal licence training and the availability of premises managers could sink an entire deal.
General Counsel want to know: is our licensing house in order? Are we exposed to local political risk? Could an objection delay our next phase?
At Gilson Gray, our job is not just to submit forms, it is to help clients navigate the Scottish licensing landscape with confidence and foresight.
Conclusion: A Future-Facing Licensing Strategy
Scotland’s licensing law is not standing still, and neither should your business strategy. Whether you are navigating new regulations, entering a new market, or managing your brand’s compliance reputation, licensing must be central to the conversation.
By treating licensing as a dynamic, strategic function, not just a legal formality, Scottish businesses can gain a critical edge.
Find out more about our Licensing services here.
