Camden Council plans to cover the cost of new licensing administration by asking residents to cough up.
The controversial plan puts the council on a collision course with the government over licensing reform. It claims it must raise £817,000 through council tax to fund the cost of the new regime.
The central London council wants to raise about £545 for each of the 1,500 pubs, bars and restaurants within its borders - over and above what it will collect in fee income.
The news comes despite government assurances the new system would not hit the tax-payer. The extra represents one per cent of Camden's council tax income. A spokesperson for the council said: "Like everyone else, we're still waiting for the fee structure to know exactly how much we'll be able to charge, but we've had to make an assessment based on what we estimate will be the cost of running an effective system."
In the House of Lords last week Lord Redesdale accused the government of creating a "bureaucratic nightmare" for both pubs and local authorities.
"The government has not come clean about the fees structure and there are real worries we will all end up having to pay for this," he said.
Michael Nicholas, chairman of Camden and Inner London Licensees' Association, said: "Camden may be planning a 'big brother'-style regime which would be a huge burden on small businesses, and would go against the government's intention."
However, a spokesman for the Department for Culture, Media & Sport said Camden, like other councils, is not yet in a position to predict its income. "The new regime will be funded entirely by licence applicants and holders," he said. "The fees will allow local authorities to fully recover appropriate costs. It will ensure the trade pays a fair price."
Camden residents hit back at licensing levy threat
- Vernon Gwyel, former publican:
- "What people forget is that the council already collects a great deal of money from pubs through business rates, in
- addition to the fees that it is going to collect under the new system. That really ought to be enough to cover its costs."
Chris Atkins, unemployed:
"I already find it hard to pay the council tax and I think it's ridiculous that the council would increase it for something like this."
Martina Dahl, receptionist:
"Pubs aren't an essential service. The council should focus its resources where they're most needed."
Emelie Richter, restaurant worker:
"The council tax is already high and people struggle to pay. Our money shouldn't be funding the licensing system."
Stewart Robinson, retired:
"This council already wastes a lot of money. We all have to live within our means - and the council needs to put a system in place that is paid for by the money they'll get in from the pubs."