Local authorities should pick up more than half of the near-£100m in extra costs inccurred while implementing the licensing regulations, the Independent Review Panel (IRP) says.
In a move that will delight licensees, the IRP, headed by Sir Les Elton, has recommended to licensing minister Shaun Woodward that local authorities be required to pay at least £54m of the £97m in excess costs incurred when implementing its new licensing regulations last year.
It has recommended that central government pick up the remaining £43m.
The Panel's long-awaited report, published today, concluded that a number of local councils had misjudged the amount of resources needed to effect the regulations when they were issued in January 2006. Consequently, it believes, they should be expected to meet costs over and above.
Observers argue that if the government accepts the panel's recommendations the move will render "worthless" Culture Secretary Tessa Jowell's promise to local authorities they would not be out of pocket as a result of the licensing process.
"If the government accepts what Elton says, the local authorities will have to stump up for the deficit, not the pub trade," said one.
Some local authorities went beyond what was expected of them in budget terms, the panel found, and concluded they should be expected to pick up a significant proportion of the costs incurred as a result.
The Panel "came across some examples of very good practice…however there also appeared to be differences in costs dues to differences in local policy, general approach and specific operational decisions."
The panel has also recommended a seven per cent rise in fees from 2007/08 capped for three years. This would bring around £3m extra revenue a year, the panel believes.
Fee levels should be reviewed again in three years' time - 2009/10 - for implementation in 2010/11.
Other recommendations outlined in the report include:
- a set date for licence renewal
- local authorities to accept forms submitted electronically
- paperwork to be simplified.
Mark Hastings, spokesman for the British Beer & Pub Association, said the report "shone an interesting light on the wide disparity in costs entailed in the way some local authorities have approached the new Licensing Act.
"Furthermore, it raises questions about whether those costs were necessary or justifiable. We need to ensure lessons are learned and that those local authorities with excessive costs learn from the best in delivering an effective and efficient service."