Serve Legal has recently contributed to the Government’s knife licensing consultation, providing evidence informed by our position at the intersection of retailers, customers and regulatory bodies.
Our submission focused on how a licensing regime would operate in practice, the conditions under which it can meaningfully improve compliance and where there is a risk of unintended consequences for legitimate retail businesses.
We know that licensing can be an effective regulatory tool when it establishes a clear permission to trade and is supported by visible, consistent enforcement. Our experience across other regulated categories, such as alcohol, demonstrates that when licence suspension, fines or revocation are realistic outcomes, compliance becomes a commercial priority. Routine testing and enforcement activity further increases focus, investment and accountability across retail operations.
However, we emphasised in our consultation response that licensing alone is not sufficient. Regulatory frameworks are most effective when non-compliance carries credible consequences, such as suspension, product removal, meaningful fines or repeat checks. Without consistent enforcement, a licensing scheme risks becoming administrative rather than impactful.
If a licensing requirement for knife sales is introduced, we expect an increase in retailers seeking independent support to demonstrate due diligence. This includes auditing, verification of training standards and ongoing monitoring to evidence compliance to regulators. Should such enforcement be introduced, Serve Legal is ready and equipped to provide high-level support across industries, including training, auditing, benchmarking, risk prediction and wider compliance services.
With knife-related crime featuring increasingly prominently in the media, we strongly support action to prevent knives from reaching underage or vulnerable customers. At the same time, we cautioned against an overly burdensome regime. Knives are typically low-margin, low-revenue products for many retailers, and disproportionate requirements risk creating friction for legitimate customers or reducing retailers’ willingness to stock products, without necessarily addressing the areas of greatest risk. If responsible UK retailers withdraw from selling these products, there is a clear risk of increased illicit sales through unregulated markets.
Serve Legal’s 2025 audit data shows that compliance performance varies significantly by channel. In-store knife sales achieved a 90% compliance rate, while click and collect knife audits achieved 87% compliance. In contrast, compliance for home delivery and rapid delivery fell sharply to just 43%.
Compliance is strongest in controlled retail environments, where trained colleagues conduct checks, decisions are supported by management and security, CCTV is present, and Challenge 25 messaging reinforces expectations throughout the store. By contrast, compliance weakens at the point of delivery, where time pressures, third-party delivery models and less robust handover controls increase risk. This reinforces the importance of government investment in compliance systems that protect both retailers and consumers.
Based on audit evidence and operational insight, we recommended that enforcement capacity is focused on the channels where compliance is weakest, particularly online ordering journeys, marketplace accountability and home delivery handovers. Targeted enforcement and testing in these areas is likely to deliver the greatest improvement in public safety, while avoiding unnecessary burden on retailers already demonstrating strong in-store controls.
Our contribution to the consultation reflects a consistent message: strong compliance is achievable, but regulation must be proportionate, evidence-led and focused on genuine risk. Licensing can play an important role, but only when supported by effective enforcement and a clear understanding of how different retail channels perform in practice.
Serve Legal will continue to support retailers and regulators by providing independent insight into what works on the ground and where attention is most needed to protect consumers and support responsible retail.