Police Reform and Social Responsibility Bill - Part 2

Client Update - Licensing Act

Late Night Levy – there's more (and don't forget to pay your annual fees).

Part 1 of this update told you of some of the major reforms to the Licensing Act currently going through Parliament. The Bill had its second reading in the House of Commons on 13^th December and has been sent to the Committee stage.

1. Late Night Levy

There have been further developments with regards to the Late Night Levy. The provisions regarding the Levy allow a Local Licensing Authority to determine to charge all premises selling alcohol within its area a 'top up' charge. Whether or not to charge is at the discretion of the local authority.

Who does it affect?

Potentially any Premises (on or off sales) open between 00.00 and 06.00 including those operating under a Premises Licence or Club Premises Certificate.

What will it cost?

The scales are not finalised but will be based on non-domestic rateable value. Current proposals are set out below:

In addition those falling within categories D & E may have to pay an additional multiplier of 2 or 3 times if they primarily or exclusively sell alcohol.

Who get's the money?

The income will be split between the licensing authority and the police.

Why do we need this?

The idea is that those businesses that benefit from the late-night economy will be charged for the extra enforcement costs that the night time economy generates for police and local authorities.

Are there any exemptions?

Local Authorities can choose to offer discounts or exemptions in two cases. Firstly those premises participating in relevant schemes which reduce the costs of policing in the area e.g. Best Bar None, PubWatch, BID's etc.

Secondly discounts can be offered to premises that do not contribute to the costs of policing e.g. hotels who only serve their own guests.

How will we know if we are to be affected?

The Local Authority will need to consult and then make a decision as to whether to introduce this Levy. So keep an eye on the local press, the local authority website and any post inviting you to respond to a consultation. If you fall within the categories affected you should also see if you can claim any of the exemptions

2. Annual fees

In the first run down of the Bill we missed out that the power has now been given to automatically suspend any Premises Licence or Club Premises certificate where the annual fee is not paid within 21 days.

The suspension is automatic and ends on the payment of the fee. The Licensing Authority must give you notice.

So if you don't pay, your authorisation is automatically suspended. This means that if you continue to trade you will be trading without due authorisation and anyone involved could be liable to an offence attracting a fine of up to £20,000 and possibly 6 months imprisonment.

For more assistance on this area and how the changes will affect your business please contact Peter Adkins of our Licensing team.