Pubs and bars will stay open until 1am on VE Day to commemorate 80 years since World War Two ended on May 8.
Sir Keir Starmer has given the go-ahead for plans to extend trading hours on a one-off special occasion to remember those who made "incredible sacrifices" for Britain's future.
He added that it would provide a chance to "raise a glass" to those who served at home and abroad during the war.
Last night, the PM announced: "The whole country should come together to remember the incredible sacrifices made by the wartime generation and to celebrate the peace and freedom they secured for us all.
Pub licensing hours can be extended by the Home Secretary for special occasions
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"Keeping our pubs open for longer will give people the opportunity to join in celebrations and raise a glass to all of the men and women who served their country, both overseas and at home."
Pub licensing hours can be extended by the Home Secretary for special occasions of "exceptional national significance" - such as VE Day.
Other occasions that have warranted special treatment in the hospitality sector include royal and sporting events, such as the Euro 2024 final.
Chief executive of the Night Time Industries Association Michael Kill was hopeful that the extended opening hours would provide a much-needed boost to the hospitality sector.
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He said: "As someone with a strong family background in the armed forces, I know how vital it is to honour the legacy of those who served.
"VE Day is not only a moment of remembrance but also an opportunity for communities to come together.
"At such a challenging time for the hospitality sector, allowing businesses to extend their trading hours during these celebrations offers a much-needed boost while paying tribute to our shared history."
Four days of street parties and celebrations are being planned across the nation to celebrate the the Allies' acceptance of Germany's surrender in 1945.
Speculation swirled surrounding the possibility that No10 could grant a special bank holiday - although this hope was short-lived
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Speculation swirled surrounding the possibility that No10 could grant a special bank holiday for Britain to mark the occasion - keenly advocated by the Liberal Democrats.
Last year, a Downing Street spokesman mentioned that plans were underway to mark the "moment of huge significance" and "honour the memory of those who served, the legacy left behind and what we owe them".
However, plans did not include an extra bank holiday.
HMS Belfast, which fired some of the opening shots on D-Day in 1944, is just one of the iconic locations to host a street party on May 8.
Communities across the country are being encouraged to hold street parties and gatherings, just as those who celebrated 80 years ago to when Britain embraced the end of the war.
