Fees hike blow for pubs

Trade groups are "concerned" and "disappointed" that pubs face a 7% hike in annual licence fees over the next three years, following publication of the long-awaited Independent Licensing Fees Review Panel report.

They say the rise will be a further blow to hard-pressed publicans who are already facing spiralling increases in costs across their businesses.

But there was some good news from panel chairman Sir Les Elton, who has recommended the government and local councils should foot the bill for the £97m shortfall caused by implementation of new licensing regulations.

The report suggests the government stumps up £43m, leaving councils to find £54m, partly because of the inefficient handling of the new laws by local authorities, some of wh ich have made decisions beyond the remit of the Act.

The panel was commissioned by the Government to examine fee levels and the way renewals are carried out.

It makes a range of other recommendations for streamlining the application process, including one set annual date for renewals.

The increases will see pubs in the most popular band B paying £193 a year, as opposed to the current £180.

It is estimated the rise will provide local authorities with an extra £3m income a year.

British Beer & Pub Association communications director Mark Hastings said the report shone an interesting light on the disparity in costs entailed in the way some local authorities approached the Act. He said: "Furthermore, it raises questions about whether those costs were necessary or justified. We are concerned about the 7% increase at a time when we are all trying to rein in inflationary pressures".

Association of Licensed Multiple Retailers chief executive Nick Bish said: "We are disappointed it recommends a substantial increase in fee levels which comes on top of a 29% increase in SIA fees, fivefold increases in AWP permit application fees and yet another 7% increase in the minimum wage."

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Trade groups rubbish reports jowell will ignore proposals

Reports that culture secretary Tessa Jowell plans to tear up the Elton proposals and substitute her own swingeing fee increases have been dismissed as ­media spin by trade leaders.

A report in The Times suggested the pub industry would be forced to stump up some of the £54m local authorities overspent in implementing the new licensing regulations.

BBPA spokesman Neil ­Williams said the government would need a very compelling case to overthrow the proposals.

"If there are councils which did not embrace the new system properly it is not reasonable to expect pubs to pick up the tab," he said.

ALMR chief Nick Bish said media spin was clearly at work. "The logic of Elton is inescapable and the government should not tear it up.

"But one fear is the government might be tempted to opt for a halfway house by leaving lower band rates alone and going for the high bands instead to recoup some cash."

Morning Advertiser legal editor Peter Coulson said there was little credence in the Times story.

"The government cannot ask for an independent review of the fees structure and then ignore it," he said.