I'm afraid you need to read the terms and conditions of your local boroughs licensing. It is a misconception that is often held by beauty therapists. Ask your local council which professions are covered by this clause as beauty therapists aren't, the revenue generated by beauty therapists is far too great for councils to loose. I'm afraid the only choice you have is to pay up and shut up. After I opened I called my local council asking could we please make an appointment for an inspection three times, on the last call they informed me with rather more hostility than I would have liked, that they would call me if they wanted to do one but they didn't do it as standard as they used the money generated from beauty salon licenses to fund their food licensing department!!!!!. So when I asked them what exactly was I paying for I was informed that if a member of the public reported the salon for not following the licensing terms I would have my license taken away. When I asked how members of the public should be expected to know the terms of the licensing agreement things became a little terse. So I further poked at the situation and asked "could you just confirm for me that I am paying for a license that you expect the public to regulate?!" Obviously, I was met with hostility and bid the clerk good day. Things went down hill from here as I reported the situation to my MP as I felt the license was offering false safety to members of the public by licensing uninspected premises. My MP simply forwarded my complaint to the head of licensing who was now somewhat miffed and ultimately accused me lying and trying to get out of paying my licensing fee. I realised I was beaten (not a situation I perform well in on these matters) when the head of licensing began insulting my command of English (far superior to his) and that I was placing my business in danger of victimisation, so gracefully removed myself from the debate and kept my head under the parapet ever since.
So, take a deep breath, pay it and walk away, they have the power to stop you trading. I will pick this up again one day when I have the will to fight with petty bureaucrats.