Liberal Democrats are calling on the Government to reform licensing laws they say are inconsistent.
Coun Paul Elgood, leader of the Lib Dem group on Brighton and Hove City Council, said: "It is time the Government realised that the law governing live music performances is archaic.
"As it stands, only two people can perform in unlicensed premises. More than two performers require a public entertainment licence. Even spontaneous singing along with a performer breaches the present law.
"In Scotland this law does not exist and environmental health legislation ensures that the public is not disrupted."
He added: "Local authorities impose hugely varied fees for public entertainment licences. In England and Wales only five per cent of licensed premises hold them.
"There are not the venues for people to make music any more.
"In a city such as Brighton and Hove this is bad news for music and bad news for tourism."
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