Councils call for licence fee powers

Councils have asked the Government for the right to set their own alcohol licence fees to plug shortfalls in their funding.

This raises fears that town halls could ratchet up the costs for pubs.

The move follows swingeing cuts announced last week in the Comprehensive Spending Review — town hall budgets will be cut by 28% over the next four years.

The Local Government Group (LGG), which lobbies on behalf of councils, says councils should always be free to charge the full cost of services they provide.

The LGG says fee levels for planning and licensing "have not come close in recent years" — suggesting big increases are needed.

LGG pointed out that implementing the Licensing Act left councils £43m out of pocket — and the suggested 7% rise in licence fees never happened.

The Government is already considering whether to increase licence fees based on full-cost recovery in its overhaul of licensing.

There could also be bad news for licensees who want to make alterations to their premises. The LGG wants councils to be able to set their own planning application fees, saying there is currently a shortfall of 30% to 40%.

Councils are expected to argue for the changes in the upcoming Localism Bill, which aims to devolve greater powers to councils and neighbourhoods.

Morning Advertiser legal editor Peter Coulson said: "I think there's a danger ahead for the licensed trade, which could face quite large licence fee increases, particularly in urban areas."

Coulson feared a return to the kind of high fees charged for Public Entertainment Licences (PELs) before they were scrapped.