New Licensing Fees Will Help Provide Tougher Protections For Local People - Jowell
005/05
A new fee structure that will enable licensing authorities to deliver tougher protections for local residents against alcohol related crime and disorder and public nuisance has been laid before Parliament.
Culture Secretary Tessa Jowell today said that the largest urban pubs would be required to meet a greater share of the cost to licensing authorities – mainly local councils - of running the new licensing regime than previously proposed.
Details of the new fee structure, which follows a consultation with key stakeholders and is now subject to Parliamentary procedures, include:
- A £100 to £635 one-off payment for a new licence – a rise on the previous proposal of £80 to £500.
- £70 to £350 for an annual fee – up from £40 to £225.
- The largest town and city centre pubs paying two to three times as much for their initial application fee and annual charge.
- £37 for a personal licence
- £21 for a temporary event notice.
Under the current system, licencees pay £30 every three years to magistrates for a basic licence to serve alcohol until 11pm, regardless of the size of the venue.
Under the new system, the largest city or town centre pubs would pay a £1,905 initial application fee and a £1,050 annual fee.
The fees will recover the licensing authorities' costs of administrating, inspecting and enforcing the new regime.
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Tessa Jowell said:
"I am giving local authorities the power to run licensing regimes in their own areas. They have the local knowledge, the know-how and are accountable to the local electorate. They should be in the driving seat.
"These fees will give local authorities the tools to do the job. I now look to them to use their expertise to deliver a licensing regime that it is effective, fair and responsive to local needs.
"If there are concerns about a particular premises, local authorities should not flinch from using every power at their disposal to deal with the problem and reclaim their streets for the responsible majority. Decent law-abiding citizens have every right to expect the greater choice in how they spend their leisure time that the Licensing Act affords without threat of intimidation or violence.
"In particular, we are asking the largest town and city centre pubs to pay a higher premium. This is only right. They can have the biggest capacities, the highest turnover and often make the greatest profit. They are a major beneficiary of our night time economy. They should put more back into policing it."
There were two key findings from the seven week consultation into the fees that needed to be addressed:
- first that the overall level of premises fees – the main generator of income for Licensing Authorities - was pitched at too low a level to enable the full costs recovery for administration and enforcement in the new regime; and
- second, that the control of premises selling alcohol would in general give rise to higher costs than other premises, particularly during transition, and particularly where these were situated in town and city centres.
These findings are reflected in the revised package.
Subject to Parliamentary scrutiny, the new fee structure will have effect from 7 February 2005 – the beginning of the Act's transitional period, when applications for conversions to new licences can be made.
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Notes to Editors
1. Under the new licensing system, premises will 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 new fee structure for these two payments laid before Parliament is as follows:
Rateable value bands A B C D E
Main Application Fee 100 190 315 450 635
Main Annual Charge 70 180 295 320 350
In addition, a multiplier will be applied to town and city centre pubs (those in Bands D and E), where they are exclusively or primarily in the business of selling alcohol:
Band D (x 2) E (x 3)
City / town centre pub application fee 900 1905
City / town centre pub annual charge 640 1050
Payment to vary conditions (relates to alcohol only) during transition will be as follows:
Rateable value bands A B C D E
Variation Fee 20 60 80 100 120
These changes will deliver substantially more income for licensing authorities during transition period and beyond:
Transition Year 1
Consultation - income generated for LAs £41m £34m
Revised package - income generated for LAs £63m £55m
2. The rateable values that the fee bands are based on are as follows:
A: No rateable value to £4,300
B: £4,301 to £33,000
C: £33,001 to £87,000
D: £87,001 to £125,000
E: £125,001 and above
3. The full details of the new fee structure can be found on the alcohol and entertainment pages of the dcms website
Press Enquiries: 020 7211 6052/6277
Out of hours telephone pager no: 07699 751153
Public Enquiries: 020 7211 6200
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