http://www.homeoffice.gov.uk/publications/consultations/cons-2010-licensing-act/alcohol-consultation?view=Binary

5.08. The Licensing Act 2003 allows local
residents to raise concerns regarding new
licence applications or existing licensed
premises. Local residents are classified as
interested parties within the Act, and as such
are able to make relevant representations to
licensing authorities about the impact of licensed
premises on the promotion of the licensing
objectives in their area. Relevant representations
are considered in the determination of new
licence applications and may lead to reviews
of existing licences. To reduce any uncertainty
amongst residents as to whether or not they
are in the vicinity of a premises – and therefore
whether they are an interested party – the
legislation will be amended to remove the
requirement to show vicinity. This means that any
person, body or business will be able to make a
relevant representation on any premises,
regardless of their geographic proximity.