Councils urge Government to 'move quickly' over locally-set licence fees
Home Office minister Jeremy Browne told Parliament on Tuesday that the Government plans to introduce regulations allowing councils to set licence fees at “cost-recovery” basis in June 2014, following a consultation. The power to do so was granted in the Police Reform and Social Responsibility Act 2011.
The Local Government Association (LGA) said today that taxpayers are being “forced to pay £1.5m a month to subsidise the drinks industry” and “will see their tab keep rising” due to the delay in implementing the new system. The LGA, which represents 370 councils, said the delay means councils will have to add another £24m between now and October 2014, when it expects the system of full cost recovery to be in place.
Cost recovery
The Association of Licensed Multiple Retailers warned in 2011 that the cost recovery system may lead to an extra £100m worth of costs for pubs across the country.
Cllr Mehboob Khan, chair of the LGA’s Safer and Stronger Communities Board, said today: “Councils want to support good local pubs but cannot be expected to continue picking up the tab for licensing fees which are outdated and not fit for purpose.
“There is common ground among councils and the industry on the need for reform, along with a growing body of opinion that nationally-set fees are unfair, and some even say illegal, but the Government continues to drag its feet and break its promise to allow locally-set fees.
“As well as meaning more taxpayers’ money could be spent on frontline services, a more flexible licensing system would help councils support responsible venues which enrich local communities and put pressure on those which encourage excessive drinking, noise and high street mess.
“It’s costing councils almost £1.5m for every month which passes and October 2014 is a lifetime away in the context of the current financial climate that local authorities are facing. It is unacceptable that local authorities are being hit with funding cuts on one hand and then left with no choice but to waste vital money which could be spent on filling potholes, paying for libraries, caring for the elderly and protecting children.”
