a) a performance of morris dancing or any dancing of a similar nature or a performance of unamplified, live music as an integral part of such a performance, or
(b) facilities for enabling persons to take part in entertainment of a description falling within paragraph (a)."

No one is doubting that the playing of a folk tune, is an integral part of such a performance. So the playing of such a tune anywhere by any number of musicans is not regulated entertainment.

Does it say that the dancing actually has to be taking place? Or just that a performance of tunes that are unamplified, live music (that would be as an integral part of such a performance) is not regulated entertainment?

Or even a piano provided for such a purpose should not be regulated and require a licence?