Leeds Council Targets Legal Loophole Exploited by Criminal Gangs

Efforts underway to prevent illicit tobacco, vape and alcohol sales

Licensing officials at Leeds City Council have identified and are working to close a legal loophole that allows criminal gangs to continue trading illicit tobacco, vapes, and illegal alcohol despite enforcement actions. The issue stems from a gap in the Licensing Act 2003, which currently permits licence holders under investigation to transfer their licences to associates, effectively restarting the prosecution process and enabling illegal sales to persist.

Investigation and national collaboration

The discovery was made following investigations by Leeds City Council’s licensing officers in partnership with public health teams and West Yorkshire Trading Standards. The loophole was found to be exploited by organised crime groups to evade enforcement when venues are suspected of illegal activities.

After uncovering the issue, Leeds City Council’s licensing committee alerted national officials. The government has since pledged to consider the council’s recommendations as part of its ongoing review of the Licensing Act 2003.

To understand the scale of the problem, Leeds City Council conducted a national survey involving over 240 organisations from licensing, trading standards, and public health sectors. The findings indicated that 70% of respondents had direct experience with licence transfers during enforcement actions, and 98% supported changes to national policy to address the loophole.

Statements from council and partners

• Councillor James Gibson, chair of Leeds City Council’s licensing committee, highlighted the importance of the findings, stating the evidence strongly supports urgent reform of the Licensing Act 2003.
• Councillor Debra Coupar, deputy leader and executive member for resources, emphasised Leeds’s leadership role in advocating for reform and the city’s readiness to support national efforts to modernise the licensing system.
• Victoria Eaton, director of public health at Leeds City Council, warned that ongoing illegal operations by criminal gangs pose health risks to communities and stressed the need to close the loophole promptly.
• Linda Davis, Head of West Yorkshire Trading Standards Protecting Communities, explained how criminal groups use licence transfers to fake ownership and continue illicit sales even after enforcement visits and seizures.

Context and next steps

The Licensing Act 2003 currently regulates the sale of alcohol, provision of entertainment, and late-night refreshment. The government launched a call for evidence in October 2025 to reform the licensing system towards a more modern and proportionate framework.

Leeds City Council has also called for public health to be included as a licensing objective, which would allow alcohol-related harm to be considered when granting licences in vulnerable areas.

Some government changes have been announced, with further decisions expected following ongoing consultations.