I sent an email of support concerning the draconian measures of the PEL and received a very kind reply from Colin T. of the Peterborough Folk Diary. Here's the important bits of what he had to say:

Unfortunately the Blue Bell was the victim of a ruling which was introduced
in 1961 to make it *easier* for pubs to put on live entertainment as the
existing law was too stringent. An anonymous complaint was made...so the local Environmental Health authority had no choice but to take action.

Fortunately the situation seems to have been resolved as, I understand, the
Blue Bell now has a PEL.

The ridiculous part is that the government is bringing in a *reform*
intended to reduce the bureaucracy and inequality of charging associated
with the granting of PELs. In some ways this is a sensible move but the
proposed law is badly framed and has the result of catching almost everybody
who plays music to an audience, whether in a public place or even in a
private residence. This consequence was probably not intended by the
legislators and I think that when the law is finally passed (as it will be)
there will have been some amendments to remove the sillier effects.

Thanks, Shambles, for keeping at this and bringing it to our attention.

kat