However even if the proposed changes to the incidental exemption are accepted, the provision of an amplified instrument or PA to such an activity - would still need licensing as the provision of an Entertainment Facilty.

Not according to the DCMS (see the last para of the following).

I am able to reassure you that it is not currently the case that "any facility provided (including the floor but with the possible exemption of the premises themselves) to enable the 'playing of recorded music' constitutes the provision of entertainiment facilities".

Nor will the proposed Statutory Instrument make such 'facilities' licensable. In most circumstances, the mechanisms for the transmission of recorded music are and would remain entirely outside the definition of entertainment facilities. The definition refers to facilities for enabling persons to take part in 'making music' and 'dancing'. It does not otherwise include the playing of recorded music.

There may nevertheless be circumstances when the making of music involves recorded music. Karaoke might be an example. It is the intention of the Act that the provision of facilties to enable people to take part in (electronically amplified) karaoke is licensable, and it will remain licensable under the current proposals.

However, the current proposal would clarify that anything (including amplification and amplified instruments) provided to enable incidental music is not licensable.