Licence fee hike threat as Home Office begins consultation

The Home Office has opened a public consultation on a move from centrally-set to locally-set licence fees.

Running until 10 April, the consultation is seeking views from licensing authorities and fee paying licensees on three main areas: the maximum amounts that can be charged; whether and under what circumstances different amounts should be charged to different types of premises; and the mechanisms that will reassure fee-payers that the fees are being set transparently and at cost.

It also asks whether there should be a single national payment date for annual fees.

Fee hikes

While welcoming that the Home Office had accepted the principle of a cap local licensing fees, British Beer & Pub Association chief executive Brigid Simmonds voiced concerns that the proposed limits are far too high, and the removal of bands could hit smaller premises hard.

She said: “A pub in Band B, the most typical band, would currently pay £180 per year for their licence, yet the new cap proposed is £740.

“With such high caps, there is still a real danger that cash-strapped councils will be tempted to hike up fees dramatically, damaging local pubs.

Simmonds added: “Pubs do not enjoy any subsidy – they pay hugely into public coffers through the taxation system, through beer and other alcohol duties, business rates, and a host of other taxes. We will be making this very clear in our response.”

Regional events

Under the Police Reform and Social Responsibility Act 2011, the Home Secretary can prescribe by regulations that fee levels should be set by individual licensing authorities on a cost recovery basis.

To encourage debate on the issue, the Home Office has planned a number of regional events in York, Manchester, Bristol and London.

You can read the consultation documentation here.