I think Richard P is quite right in pointing out that "In practice the bigger problem is likely to be convincing landlords that the incidental music is outside the proper concern of a licensing officer."   And that applies maybe even more in the case of companies owning chains of pubs, and laying down a policy for what their managers are authorised to do."

Always remembering that in principle we should never just think in terms of pubs. Pubs only took on their central role because, almost by accident, in 1964 legislation effectively made live music in other places it had happened before, such as coffee bars, effectively illegal. The combination of the two in-a-bar exemption and the existence in those days of far more function rooms, made all the difference.

Legislation always seems to have these unexpected results, and it'll be interesting to see how it works out now.