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Independent Licensing Fees Review Panel Interim Report Published

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The Government today published the interim report of an independent panel that has been set up to consider whether new licensing fees are set at the right level.

While the panel has collectively concluded that it is too early to take a view on the current fee levels associated with the Licensing Act 2003, it has made the following initial recommendations to the Government:

  • There should be a central source of information on fees addressed to licence payers, which explains why the system has changed, what the new system does for licence payers and their duties and responsibilities, as well as what licensing authority responsibilities are to licence payers.
  • An annual date should be set for the payment of the annual fee with incentives for paying it.
  • Consideration should be given to simplifying the application process, particularly in relation to advertising applications and clarification of the requirement for  'professionally' drawn premises plans.
  • There should be no impediment to licensing authorities making their monitoring, enforcement and administration more efficient and cost effective.

Sir Les Elton, chairman of the panel, which includes representatives of local government, local communities and industry, said:

"The panel are very grateful to all those who have contributed, at very short notice, to our work and provided views and experiences of the new licensing fees regime.

"The last few months have been challenging for licensing authorities and fee payers as they get to grips with a major piece of new legislation. Everyone we have talked to has agreed that producing an appropriate fees regime is complex and there are no easy answers.

"It has not proved possible to reach conclusions yet on the main issues. But we have unanimously agreed four immediate recommendations and areas of other activity that we will consider further during the next stage of our work. We have also agreed that if we are in a position to make further recommendations in advance of our full report next autumn, then we will do so."  

Licensing Minister James Purnell said:

"I thank Sir Les and his team for their excellent work so far. We will now go forward and fully consider the panel's recommendations.

"Devolution of power to the local level is a fundamental tenet of the new system. Local authorities are best placed to run their licensing regimes. They know their local areas, they know their electorate and they are finely attuned to local needs and concerns.

"Our role is to ensure that they have the tools to do the job. That means ensuring we have got the fees right. Everyone involved in the new system can rest assured - if evidence proves that the current system needs fine-tuning, we are fully committed to doing just that.

"The panel are due to publish a final report on the fee levels in the autumn of 2006, and I am grateful for their offer that, where they are able to do so, they will make further recommendations in advance of their full report."

The interim report identifies areas that the panel will now consider, including:

  • Licensing Authority income and costs.
  • Licensing Authority inspection and enforcement regimes and the variability of Licensing Authority approach.
  • The model for calculating fees.
  • Simplification and number of applications.
  • Temporary Event Notices.
  • Not-for-profit groups (including sports clubs and village halls) and events and circuses.
  • Large Events and Festivals.

Costs incurred by local authorities in meeting their requirements under the new Licensing Act will (provided they have been incurred legitimately and efficiently) be fully met by fees within the national fee regime. There should therefore be no liability for the council tax payer because of the new licensing regime.   DCMS and the LGA will work with the independent fees review panel as a matter of urgency to agree the process for verifying these costs. 

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Notes to Editors

1. On 25 January 2007, the Government published the Independent Licensing Fees Review Panel's Final Report.

2. The panel's terms of reference are to:

  • consider whether the fees cover the full cost to licensing authorities;
  • identify the scale, extent and nature of any problems encountered by licensees/licence payers and licensing authorities;
  • make recommendations about how the existing fee structure and levels could be developed;
  • ensure best practice is being fully realised across all authorities; and
  • identify how the regime could be developed to address any other issues including impact of the fees scales on sports clubs, village and community halls.

3.  The panel's members are as follows:

  • Sir Les Elton, former Chief Executive of Gateshead Council, currently non-exeutive Director, Port of Tyne Authority, and Visiting Professor, Newcastle-upon-Tyne Business School.
  • Clive Allen, Executive Head of Corporate Services, Surrey Heath Borough Council.
  • Duncan Bowdler, Head of Trade Liaison, the Co-operative Group.
  • Francis Patton, Customer Services Director, Punch Taverns.
  • Brian Wilson, Group Director (Thematic Studies and Inquiries), Commission for Rural Communities.
  • Paul Woods, City Treasurer, Newcastle City Council.

4. The panel was established in summer 2005.

5.  Under the Licensing Act 2003, premises apply for a one-off premises licence and then pay an annual charge for their licence thereafter. The charge is based on the rateable value of the property. The current fee structure for these two payments is as follows:

Rateable value bands

A

B

C

D

E

Main Application Fee

100

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