However, the Government’s preferred option on the charges for late-night venues comes in at up to £18.2m per year — as it includes a range of exemptions for businesses.
The Government unveiled the figures as part of its consultation over the introduction of the late-night levy and early-morning restriction orders (EMROs) last week.
The LNL will allow licensing authorities to raise a contribution from late-opening (midnight to 6am) alcohol retailers towards policing the late-night economy.
EMROs will enable licensing authorities to restrict the sale of alcohol in whole areas or parts of their areas between midnight and 6am.
The consultation has estimated in its preferred option that around 94 local authorities are likely to raise money from the levy and that 33.4% of premises in an average licensing authority are likely to open past midnight.
It has also estimated that 25% of premises that open late are likely to change their licence to avoid the levy.
Country pubs in villages of fewer than 3,000 inhabitants could all be exempt and restaurants, premises with overnight accommodation and those working in business improvement districts or under Purple Flag schemes would not be subject to the levy under the Home Office’s preferred plan.
Discounts of 10% to 30% could be offered to members of best practice schemes such as Pubwatch and Best Bar None.
The levy, which could apply to any period chosen by the council between midnight and 6am, would vary according to each venue’s rateable value.
Those in the fee band E and subject to the late-night multipler would pay £4,440 per year under the proposal. Outlets in band A would pay a lesser rate of £299.
The Home Office has also suggested there should be exemptions for the LNL and EMROs on New Year’s Eve.
However, consultation on the introduction of EMROs provides no exemption for community pubs, but prem-ises with overnight accommodation would be exempt.
Kate Nicholls, Association of Licensed Multiple Retailers strategic affairs director, said: “The Government claims these measures deal with the ‘problems of late-night drinking’. But until the issue of supermarkets selling alcohol at pocket-money prices is addressed, the problems will not be fully resolved.”
Brigid Simmonds, the British Beer & Pub Association’s chief executive, said the costs will be an additional burden on growth, adding: “If the Government is serious about cutting red tape for small businesses like pubs, it must think carefully. Ideas put forward to exempt restaurants and members’ clubs from the levy would be unfair, and could leave pubs footing the entire bill.”
The consultation runs until 12 April. Go to www.homeoffice.gov.uk/publications/about-us/consultations/late-night-drinking.
What the PMA says:
While £18.2m under the Government’s preferred option seems a large sum, it really is a drop in the ocean for the local authorities and police.
Home Office consultation has suggested the fees split should be 30:70 respectively, with each licensing authority expected to raise £39,000-£54,000 to help fund wardens and taxi marshals.
Police, meanwhile, are likely to raise an average of £84,000 to £120,000 per force, which would result in 2,800 to 4,000 hours of police constable time.
However, for a struggling operator aiming to open later on just a Friday or Saturday night, this could be the final nail in the coffin.