London councils want pubs to pick up licensing tab

London Councils is seeking urgent talks with Tessa Jowell claiming Londoners pick up the tab for the issuing and enforcement of licences for the capital's bars, pubs, clubs and other entertainment venues.

The government is looking at possible changes to the levels of fees that councils can charge for issuing licenses following the findings of the recent independent review carried out by Sir Les Elton.

We had been continually promised that the fees would cover the costs but so far this has failed to materialise​Chairman of London Councils' transport and environment committee, Cllr Daniel Moylan.

The review found that the current fees structure was failing to cover the full costs to councils for issuing and enforcing the new licences despite government promises that it would.

It showed that seven of the eight authorities faced with the biggest deficits were in London.

While the Elton Report concluded that all licensing costs should be covered by the fees, it also recommended that London boroughs should receive more government funding due to the higher costs they face compared to other parts of the country.

Councils in London claim they face extra costs because of the large number of licences they deal with and the additional cost of ensuring venues stick to the conditions of their licence.

The group representing the local authorities in the capital has now written to the Secretary of State for Culture Media and Sport seeking urgent talks to raise its concerns.

It believes the cost of a licence should take account of the main use of a building and not just its rateable value. It is calling for 'add-ons' to be included in the cost of a licence, such as whether the premises is open after 11pm; sells alcohol as its main business; or whether there is live music.

It also wants businesses categorised as small, medium or large according to the size of the areas open to the public and a premium added if selling alcohol is the venue's main business.

This would lead to pubs paying more for a licence than a similar sized restaurant.

Chairman of London Councils' transport and environment committee, Cllr Daniel Moylan, said: "We had been continually promised that the fees would cover the costs but so far this has failed to materialise. It will be grossly unfair if Londoners are left to continue to pick up the tab for the government's licensing regime.​

"It is vital that any changes to the fees acknowledge the capital's special circumstances, otherwise Londoners will continue to get the raw end of the deal as boroughs seek ways of raising the money needed to fulfil their licensing obligations."