The following from the S 182 Guidance to the Licensing Act 2003.

13.58

Care will be needed to ensure that only necessary, proportionate and reasonable licensing conditions impose any restrictions on these events. Where there is any indication that events are being deterred by licensing requirements, statements of licensing policy should be re-visited with a view to investigating how the situation might be reversed. Broader cultural activities and entertainment may also be affected. In developing their statements of licensing policy, licensing authorities should also consider any views of the local authority's arts committee, where one exists.

Whatever the full facts of the 2010 Jamstand Festival may turn out to be, it is at least clear that this valuable cultural activity has been deterred by local licensing requirements. The local Licensing Authority are now required to investigate with a view to reverse the situation.