Off-trade 'likely' to face late-night licence fee

By James Wilmore

- Last updated on GMT

Councils are expected to be given the power to charge supermarkets and off licences an extra levy for late-night alcohol licences, as well as the...

Councils are expected to be given the power to charge supermarkets and off licences an extra levy for late-night alcohol licences, as well as the on-trade, The Publican​ understands.

Under government plans, local authorities will be allowed to slap a levy on late-opening venues.

But, according to an industry source who has been in consultation with the Home Office, the fee is "likely" to be applied to the off-trade too.

"The late night levy is not finalised but it is likely to apply to the off-trade and on-trade," the source said.

"It is intended that councils will not have to spend time building evidence of a link between problems in the night-time economy and specific premises.

"But it is not clear whether this means that councils will be able to choose which premises to apply the levy to or whether it will apply to all that are open after a certain hour."

On the issue of below-cost selling, it is understood the government is looking at three possible ways of enforcing a ban.

These include: a "responsibility deal" between the off-trade and government, where shops are told what is regarded as "responsible"; a new law as part of the Police Reform and Social Responsibility Bill; a condition in the mandatory code; or as part of the Licensing Act.

But it is understood industry figures are trying to dissuade officials from including it in the Licensing Act, as the ban would only cover England and Wales.

Meanwhile, it is understood the government has asked the Office of Fair Trading for a "comfort letter" which could allow retailers to talk about the definition of below-cost selling.

The coalition is thought to be seeking advice on the legality of applying a ban on loss-leaders, under UK and EU law. However officials are understood to be concerned that a ban based on anything above duty plus VAT could be too close to a minimum price and would be illegal.

A consultation on the government's measures around alcohol is expected to be launched by the end of this month.

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