The NSW government will cut down on red tape in an attempt to make it easier for events to be held at venues and outdoors.

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The new Cultural State Environment Planning Policy will reduce the amount of time it takes for events to be approved by local councils and state agencies.

The move is in response to a report from the NSW Productivity Commissioner, which found there was a potential $8 billion uplift in the NSW night-time economy if unnecessary red tape was reduced.

Changes will include live entertainment being able

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