More from the Guidance. Sorry I can't get a blue clicky to work but if you go to Google and search for 'Licensing Act 2003' then down a couple of lines is 'GUIDANCE ISSUED UNDER SECTION 177 OF THE LICENSING ACT 2003'. Anyway, this is relevant:-

8.8 Licensing authorities and responsible authorities should also have proper regard for the history of certain events and activities. If over a significant period of time, regular events of a particular kind have not given rise to problems of disorder and disturbance or concerns about safety or children, this should stand in favour of the applicant for a premises licence in respect of the activities involved. For example, for many years events involving up to two live musicians in premises licensed for the sale of alcohol have been exempt from the requirements for a public entertainment licence. Local authorities will be aware of premises where this freedom has caused local disturbance for residents and where it has not. This local knowledge is important. Where premises have not caused such problems, the provision of small-scale live music should not normally give rise to the need to attach any substantial conditions to the main premises licence. On the other hand, where in the minority of cases problems have occurred, the new premises licence will afford an opportunity to attach conditions addressing any nuisance previously caused. The views of local residents will be important in establishing the extent of any history of problems.