A case of give and take with this Government
Late last year the Chancellor announced some welcome help for pubs with business rates; capping increases this April, extending small business rate relief, and promising a £1,000 rebate over the next two years.
Fast-forward two months and the same Government risks undoing the goodwill built up by tinkering with the licence-fees regime, which could lead to huge hikes for pubs wanting to renew their premises licence, make common variations or even minor changes.
The Home Office has begun a consultation on reforming licensing fees to enable, what it calls, “total cost recovery”. The current system is estimated to cost local authorities about 27% more to administer than the fees recover.
It proposes introducing caps on the level of each fee — intended to represent the maximum that any licensing authority can charge and not a ‘guide’ to fee levels.
The Government’s argument for making changes is that current levels were set in 2005 and have not been adjusted since — other than for the introduction of new fees for new processes — and apply nationally.
Cash-strapped
In his introduction to the consultation, Norman Baker, crime prevention minister, explicitly says locally-set fees cannot be used by councils to raise extra revenue and must be based on recovering the costs that licensing authorities incur in carrying out their functions.
That assurance reads well on paper but, when it comes to the day-to-day reality, it’s naïve to think that cash-strapped councils, which have seen their funding from central Government slashed, won’t be tempted to ratchet up fees to the maximum level.
Changing the name of a designated premises supervisor could mean a rise of as much as 357% to £105, an application for a minor variation up 174% to a maximum of £244 and applying for a temporary event notice will now cost you £100 — an increase of 355% on the current cost of £22 — which may make you think twice about running any additional events.
In addition, wet-led pubs and bars could be charged more to pay for the extra costs of “licensing functions”. Late-night venues also face potentially higher fees, alongside the existing threats of late-night levies and early-morning restriction orders.
Annual renewal
No timescale for the changes has been outlined, but industry sources suggest the new system could be in place by this summer. One sensible proposal is the introduction of a single annual renewal date for licences. Although this won’t be introduced at the same time as the new fees regime, it will certainly simplify the system, particularly for multiple operators.
The Home Office is planning regional events in York, Manchester, Bristol and London giving those affected a chance to provide feedback. Look out for more details on these events and — if you can — go along and make your voice heard. Alternatively, email your response to the consultation by 10 April.
