A scheme licence shall continue in force for a period of 5 years beginning with the date on which it was granted, unless the licensing authority by whom it was granted revoke or cancel it.

Where a person makes a renewal application and the application is not disposed of or withdrawn before the date on which the existing licence is due to expire, sub-paragraph (1) of this paragraph shall have effect in relation to it as if the reference to the end of the 5 year period were a reference to the date on which the application is disposed of or withdrawn.