The levy will apply to licensed premises, which are permitted to supply alcohol at any time between midnight and 6am.
The Association of Licensed Multiple Retailers (ALMR) has condemned the council’s decision to implement the levy and warned it will have a detrimental effect on local businesses.
Hugely retrograde step for the council
ALMR chief executive Kate Nicholls said: “The introduction of a late-night levy is a hugely retrograde step for the council and there is a real danger that local businesses will suffer as a result.
“Pubs and bars in Tower Hamlets already make a substantial contribution in the form of taxes and business rates and an additional cost burden will only undermine their ability to invest and employ in the area.
“The borough’s pubs, bars and nightclubs are an asset to the community. They attract customers, bring money to the area and contribute to the unique character of this part of London.
“The ALMR has consistently opposed the introduction of late-night levies and has liaised with councils to promote a greater emphasis on partnership schemes and voluntary measures, rather than punitive taxes.
“Local authorities across the UK need to work closely and in harmony with their local pubs and bars and need to begin to treat them as the great assets they are, rather than burdens or cash cows.”
Landmark decision for alcohol licence
The income from the levy, less collection costs, will be allocated through the Community Safety Partnership.
Members of the Best Bar None Scheme will benefit from a 30% reduction in the amount of the levy payable.
There will be exceptions to the levy for premises with overnight accommodation, community amateur sports clubs, community premises, bingo halls, theatres and cinemas and for premises, which are only permitted to sell alcohol on New Year’s Eve within the levy supply period.
A landmark decision to grant an alcohol licence in east London’s cumulative impact zone took place last year (December).
Craft beer shop Kill The Cat on Brick Lane, which is in Tower Hamlets, was given the licence after 18 months of planning and legal negotiations with licensing sub-committees.