Licensing fee structure announced at Publican Conference

The proposed fee structure for the new licensing regime has been unveiled exclusively at today's Publican Conference by licensing minister Richard Caborn.

In his keynote speech to delegates, Mr Caborn announced the start of a consultation on plans for fees for the premises licence to range from £80 to £500, depending on the size of the pub, with an annual fee of between £40 and £225.

He plans to set the fee for the personal licence at £37. He told delegates: "The fees represent the last piece of the jigsaw before we begin the business of transition to the new regime, and I hope the trade will take the time to look at and respond to the consultation.

"I believe the fees are set at the right level to meet the admin and enforcement costs of the new system - it is important to remember that the fees cannot be used to raise funds for the development of the wider night-time economy."

He added that the proposals are open for debate and may be adjusted following the end of the consultation on December 23.

The fee levels are in line with what was expected by the industry and it is anticipated the majority of pubs will be charged at the lower end of the scale.

However, there is concern among licensees that they will still be paying more for their licences, and local authorities - which had been lobbying ministers hard to raise planned fee levels to cover the cost of transition to the new system - are sure to oppose the move.

In a statement released shortly before Mr Caborn's announcement, the Local Government Association (LGA) warned that council tax payers could end up footing the bill if the fees fail to cover administration costs.

It added: "The LGA is warning that inadequate fee income could slow down application processing and make enforcement difficult."

The government has consistently maintained that the new licensing regime would be self-funding - the then-licensing minister Mike O'Brien told The Publican in 1998 that the fees would neither provide authorities with a surplus nor require them to raise council tax to cover costs.

Mr Caborn said he believed this would indeed be the case. "We have been in consultation with the local authorities and have looked at detailed financial argument and we now believe we have got the levels right and that local authorities should be able to operate within them," he added.

Reacting to the minister's announcement Nick Bish, chairman of the Association of Licensed Multiple Retailers, said: "It is unhelpful to publish such a document for further consultation just three months before the start of transition to the new regime."

He also asked the minister to allow the new system time to "bed in" after its introduction before launching any review of the fee structure.

Martin Rawlings of the British Beer & Pub Association (BBPA), said: "The fees are broadly in line with expectations and the large majority of pubs will be charged at the lower end of the scale. Over 80 per cent of pubs will pay less than £150 for their premises licence."

The consultation is available on the DCMS website at www.culture.gov.co.uk.