Legal advice: Licence application fees set to rise by 7%

The Independent Fees Review Panel has submitted its final report on the fees introduced by the Licensing Act 2003. As you may be aware, many authorities have been complaining that the fees set at the time of transition did not meet the actual costs they had to bear.

Trade associations and licensees who responded to the panel's request for an industry perspective reported that the overall costs had been more than originally predicted. This was due to factors such as the cost of advertising, the time and effort spent on the application process, variation costs and the number of designated premises supervisor (DPS) transfers required. Costs also accrued because of the number of hearings and appeals and the late introduction of the 'multiplier' to application fees for large city-centre pubs.

A total of eight authorities (seven in London) estimate a loss of over £1m each in terms of licensing costs over fees collected over a three-year period.

Multiplier redefined

The report's major recommendation is that all applications be subject to a seven per cent fee increase on the current levels, predicted to bring in an additional £3m revenue.

It also recommends that premises subject to the multiplier in town centres be redefined, to include all Band D and E premises that attract large amounts of enforcement and inspection activity, rather than defining the premises according to whether they are primarily engaged in the sale of alcohol.

The panel recommends a rule for certain premises regarding fee payments, if alcohol sales are purely incidental to the main purpose of the premises activity, such as bookshops selling communion wine and so small as to be negligible, no fee will be payable.

It also suggests that community and village halls be exempted from having to have a DPS when applying for a premises licence.

The final recommendation is that fee levels be reviewed again in three years, when it will be possible to make a proper and accurate assessment of the ongoing costs to licensing authorities.