This is what the Statement of Licensing Policy (which was endorsed by the Council's Management Committee) has to say on the exemption.

5.6.2. The incidental performance of live music and the incidental playing of recorded music may not be regarded as the provision of regulated entertainment activities for the purposes of the Act. This is where they are incidental to another activity which is not itself entertainment or the provision of entertainment facilities falling within paragraph 5.6.2. Whether or not music of this kind is 'incidental' to other activities will be judged on a case by case basis

[For information, the previous SOLP, which presumably formed the policy on this exemption at the time the advice was presented on 5 May 2006, reads as follows.]

5.6.2 Music incidental to certain other activities
The provision of entertainment consisting of the performance of live music or the playing of recorded music is not to be regarded as the provision of regulated entertainment for the purposes of this Act to the extent that it is incidental to some other activity which is not in itself-
• A description of entertainment falling within paragraph 2, or
• The provision of entertainment facilities.

As you can see from the above - the details of what the LGO refers to as being the Council's view on the incidental exemption - is not what appears in the SOLP and has never been endorsed by any Committee or even presented to one. It is not clear if any of the elected members of the Council are aware of how this differs from the Government Minister's advice - or if they are aware - if they care.