Pubs and clubs can open for 36 consecutive hours starting on New Year's Eve for the first time this year, it has been announced.
Parliament has approved the Regulatory Reform (Special Occasions Licensing) Order 2002, which came into effect at the weekend.
This allows licensed venues to open between 11am on New Year's Eve and 11pm on New Year's Day.
The Order will also allow the automatic extension of existing public entertainment licences for the extended period provided for the sale of alcohol.
Licensing minister Kim Howells said: "This is good news for consumers and the industry.
"Longer drinking hours will provide consumers with more choice of when and where to celebrate.
"It is one-step closer to the reform of our archaic licensing laws."
Police, councils and residents will have the right to seek restriction orders from magistrates if venues are likely to cause disturbances.
Applications to courts will need to be made with five days' notice.
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