Changes to the “surrender principle” were among the 26 recommendations made by researchers at the University of Stirling, whose report was published in February.

The surrender principle is the name for the “one in, one out” system designed to limit the number of licensed outlets.

The research team, led by Dr James Nicholls and Professor Niamh Fitzgerald, said reform would protect both public health and the pub sector.

They said the existing regime results in pubs closing and being replaced by off-licences.

Gordon Lyons, the communities minister, this week told MLAs that he had reviewed the report and decided “not to accept the authors’ recommendation for targeted reform of the surrender principle”.

He said the recommendations in the report “were not impact assessed or costed, and I am not persuaded that the authors have made a compelling case for such a fundamental change, which could have significant and unintended consequences on the economic viability of our hospitality sector”.

The minister highlights figures from Hospitality Ulster suggesting that 27 per cent of hospitality businesses are operating at a loss and another 20 per cent are just breaking even.

He said: “However, this is not a rejection of progress. The report has also provided my Department with the opportunity to consider how the regime can be further improved and modernised.

“I have directed my officials to explore how far the current licensing regime has contributed to the growth in off-sales and the relative decline in pub licences and the policy options available for effectively addressing any corresponding growth in alcohol-related harms.

“The role the licensing regime can play in supporting market diversity and innovation will also inform my Department’s response to recommendations on local producers’ licences introduced in 2022, that will be taken forward following the completion of a statutory review.”

He added: “A number of the recommendations made by the authors fall within the responsibility of the Department of Justice and its agencies.

“I will write to my Executive colleague the minister of justice, bringing these recommendations to her attention and seeking her views.”