Late-night levy will cost pubs up to £4,400 per year

Pubs will have to pay up to £4,400 per year towards the late-night levy, as confirmed by the draft regulations on the measure published by the Government.

It follows the Government’s response last week to the public consultation on the levy and early morning restriction orders (EMROs), due to come into force this October as part of the Police Reform and Social Responsibility Act.

The late-night levy will charge premises which are authorised to sell alcohol past midnight with local councils deciding the time from which the levy will apply in their area.

The amount charged will be based upon Non-domestic Rateable Value of the relevant premises.

Premises which fall in ‘Band A’, with a rateable value of up to £4,300, will have to pay £299 per year towards the levy, which will be collected by local police and councils in order to aid the night-time economy.

Pubs in ‘Band B’ (rateable value of £4,301 to £33,000) will have to pay £768.00, whilst those in ‘Band C’ will be liable to pay £1,259 per year.

However, the amount to be paid by pubs in Bands D and E will depend on whether the premises are used exclusively or primarily for the sale of alcohol for consumption.

Band D pubs - with a rateable value of £87,001 to £125,000 - will pay £1,365 towards the levy, or £2,730 if used exclusively or primarily for the sale of alcohol for consumption.

Finally, Band E pubs with a rateable value of greater than £125,000 will have to pay £1,493.00, rising to £4,440 per year.

The draft regulations also confirm that there are no reductions if a premises become liable to pay the levy half way through a levy year.

Similarly, there are no reductions if a premises varies its licence to reduce the hours and therefore opts out of the levy hours during a levy year.

There are, however, adjustments to the levy if a licence or certificate lapses due to insolvency, mental incapacity or death or the supply of alcohol between midnight and 6am is already prohibited by an EMRO.

The Home Office expects the earliest date that a licensing authority could introduce a late-night levy to be approximately June 2013, with EMROs estimated to be available to local authorities from April 2013. The legislation comes into force on 31 October 2012.