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archive 2004

145/04 
4 November 2004

Proposed New Licence Fees Announced

The proposed fees for licences, certificates and notices under the new Licensing Act have been published for consultation and everyone is invited to take part, Licensing Minister Richard Caborn, announced today.
 
They include:
  • £80 - £500 one-off payment for a licence under the new system;
  • £40 - £225 annual fee;
  • £37 for a personal licence; and
  • £21 for a temporary event notice.
The fees will recover all the licensing authorities' costs of administrating, inspecting and enforcing the new regime. They will not cover health and safety and environmental health functions, which are unrelated to licensing and which are funded separately. The income from the fees may not be used to finance other local authority activity relating to the night time economy generally.
 
Venues which serve alcohol and choose to put on live music will not have to pay anything on top of the basic licence fee. Under the current system, for example, licencees pay £30 every three years to magistrates for a basic licence to serve alcohol until 11pm. If they want to put on live bands they must obtain a separate licence for an additional cost. Similarly a bar, pub or restaurant that wishes to serve alcohol after 11pm must pay extra.
 
For the first time fees will be set centrally, removing the inconsistencies that currently exist. This will create a fair and level playing field across all licensed premises in England and Wales.
 
 
Licensing Minister, Richard Caborn, said:
 
"This is the first major overhaul of licensing in 40 years and it's long overdue. For years alcohol licence fees have not been reflecting the true costs and taxpayers have effectively been subsidising the licensed trade. This will not be the case under the new system.
 
"We estimate this new system will free up around £80 million over the first three years of full operation, for local authorities and the police to spend on better intelligence-lead enforcement to target rogue premises - benefiting the whole community.
 
"The new licensing regime will be easier and more efficient as six licences will become one. All decisions will be taken by licensing authorities who are democratically accountable.
 
"Once the new system has bedded in there will be an independent review and we will adjust the fees if necessary."
 
Once the seven-week consultation is completed, the Government will carefully consider the responses, and make any necessary amendments to the draft regulations and order.

Notes to Editors
 
1. A full copy of the consultation is available on the DCMS website.
 
2. Responses can be e-mailed to feesconsultation@culture.gsi.gov.uk or sent to:  The Alcohol and Entertainment Licensing Branch, Tourism Division, 3rd Floor, DCMS, 2-4 Cockspur Street, London SW1Y 5DH.
 
3. The seven week consultation closes on 23 December.  
 
4. Currently a venue does not need an additional licence if a live band comprises of two or less people. This 'two in a bar' will be abolished and every live act will need to be licensed. The Government believes the current rule in practice restricts what entertainment will be provided, creates disincentives to the presentation of more diverse musical acts and fails to protect local residents from noise nuisance.
 
5. Licensing authorities will begin processing applications from 7 February 2005 – the start of the period of transition.
 
6. The Licensing Act 2003 received Royal Assent on 10th July 2003. Its reforms will come into effect in full in early 2005. Further details can be found at:
www.culture.gov.uk/alcohol_and_entertainment/licensing_act_2003.htm
 
Press Enquiries: 0207 211 6271 / 6267
Out of hours telephone pager no: 07699 751153
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