A rift within the government over charging licensees for police patrols could spell good news for the trade.
According to reports this week, the Prime Minister's office is outraged by the Home Office's proposed new scheme to force the licensed trade to pay the costs of policing.
Tony Blair is rumoured to be reluctant to add further burdens on the industry do which worth millions to the UK economy.
The levy is thought likely to be in the Home Office's White Paper on anti-social behaviour, which is expected to be published in the next couple of months. It is thought that the cost is being introduced by the Home Office because it has not received the full funding it wanted from the Treasury.
According to a report in The Guardian this week, a source close to Downing Street said: "Downing Street does not want to upset a key constituency such as the brewing industry. But at the same time the Prime Minister has been leaning heavily on the Home Office to do something about anti-social behaviour."
The trade hopes that if Mr Blair disagrees with the so-called police tax it could force the Home Office to rethink its plans.
Tony Payne, of the Federation of Licensed Victuallers' Associations, thinks the government rift could be positive for the trade. He said: "It's important that the Prime Minister has taken on the views of the trade.
"Downing Street has recognised that the licensed trade is paying enough and that we shouldn't be penalised by paying for policing."
Caroline Nodder, spokeswoman for the British Institute of Innkeeping, said: "If the Prime Minister's office is supporting the trade views on this then we are obviously pleased.
"We are very much against the police levy. We don't see any reason why pubs should be singled out."
But Mark Hastings, from the British Beer & Pub Association, has greeted the news with caution.
"There is a debate in the corridors of power but we think the levy will be left in the White Paper for consultation.
"We are firmly opposed to it and will encourage those in the government to make their views known."
Related articles:
Minister confirms government is considering 'pay-for-policing' scheme (17 February 2003)
BBPA attacks police fee plan (13 February 2003)