Local councils and police are to turn a blind eye to unlicensed premises this winter, saving up to 20,000 pubs, bars and restaurants from the threat of closure.

The Local Government Association (LGA), the Association of Chief Police Officers (ACPO) and the Local Authorities’ Co-ordinators of Regulatory Services (LACOURS) have revealed that unlicensed premises will be able to operate illegally, as a blanket approach to enforcement would be impossible to apply.

Owners may otherwise have risked the suspension of their licence, fines of up to £20,000 or even a jail sentence.

A spokesperson for the LGA said that councils will be taking a risk-based analysis of unlicensed premises, targeting as a priority pubs and bars where there have been concerns about crime and disorder.

This approach will be adopted particularly throughout the run-up to the busy Christmas period and the LGA emphasised that it does not mean that pubs and restaurants will be able to operate indefinitely without the correct licence.

Bob Cotton, chief executive of the British Hospitality Association (BHA), welcomed the announcement and said: “We think it’s a sensible move following the chaotic manner in which the new Act was introduced. We always believed that the introduction of the new law was too hurried and this only tends to prove the point.”

The Department for Culture, Media and Sport (DCMS) said: “This is a sensible piece of contingency planning for local authorities and the police. We fully support the police in using the new powers under the Act to deal with problem premises whatever the situation.”

Up to 10 per cent of licensees – who missed the 6 August deadline for submitting their applications – will not have their licence renewed when the new law comes into effect on 24 November. The DCMS estimates that 98 per cent of premises have now applied, however. Details: www.culture.gov.uk