Yes, I would in the ordinary case.In the ordinary case it means they've no insurance
The reason why driving with no licence has such a low maximum penalty is that it usually means that the driver has no insurance and the courts can penalise heavily for that.It would be odd for someone to be summonsed simply for 'no licence'. If it happens, it's likely to be for having a licence which has expired, in which case it's just possible that the driver still has valid insurance cover, either personally or as an authorised employee under a trade policy. I don't think I'd report them if I knew that their licence had just expired. Then I'd remind them. (I'd also report anyone on a provisional licence who was driving unaccompanied)