You need a licence from the council to run a sex shop - i.e. any premises selling sex toys, books or videos - or to run a venue where explicit films are shown to members of the public. However, you may apply to the council to request that the need for a licence is waived.
Middlesbrough Council's policy relating to the licensing of sex shops states that 'the number of sex establishments allowed in the town centre of Middlesbrough be one, and that no sex establishments be allowed in other localities of Middlesbrough.'