Here people want to the carols to continue.

I think that is something that everyone wishes for these and similar events elsewhere - but perhaps it is time these and other events were finally valued and cherished for what there are - rather than threatened by being turned into something they are not? They are neither Regulated Entertainment or anything that PRS/PPL should be concerned with or require payment and a licence for.

As far as the Licensing Act 2003 is concerned - it is either legally enabling these participatory musical activities without entertainment permission (like Morris Dancing) and without any conditions being imposed or it prevents it without entertainment permission. Which is the local authority saying it is?