Home Office decision over licensing fees slammed by the LGA - KHUB Focus

The Government has opted to keep national licensing fees rather than adopting locally-set licensing fees. This is a move which could costs councils millions, according to the Local Government Association. Our feature writer Suzanne Danon finds out more.

Following months of consultations on allowing local authorities to set their own fees instead of the current nationally set rates, ministers stated they have simply listened to the concerns raised by pubs, small businesses and community groups who sell alcohol, provide late night refreshment or regulated entertainment, and decided to keep a national licensing fee system. This will remain in place while further evidence is sought.

Respondents to the consultation, including owners of small pubs and representatives of community and village groups, were concerned that fees would rise without justification.

“This Government strongly supports the vital contribution that responsible businesses, including pubs, hotels, restaurants and community premises make to our economy and to their communities, and we want to avoid putting undue burdens on them,” said Crime Prevention Minster Lynne Featherstone.

“The introduction of locally-set licensing fees would affect a wide range of businesses and we need to get it right. We intend to work with local government to ensure that we move forward on the basis of up to date evidence.”

But the LGA condemned the decision as ‘hugely disappointing’ and a missed opportunity to ease the burden placed on council services by centrally-set licensing fees.

Cllr Ann Lucas OBE, chair of the LGA’s Safer and Stronger Communities Board said: “Not letting councils set their own licensing fees and recover the full costs of applications from pubs, nightclubs and off-licences means that around £170m of taxpayers’ money has subsidised the drinks industry in the past decade. This bill is rising by around £1.5m a month.

“At a time when every penny is needed to protect services, this money would help patch up our crumbling roads and ease the pressure on squeezed social care budgets. Licensing fees haven’t risen in a decade despite an independent review calling for an increase in 2006. We will continue pressing the Government to ensure fees are increased and this subsidy is ended once and for all.”

*Alongside the consultation, the Government also conducted a survey that only went to licensing authorities and asked them to outline their costs. As this provided limited evidence, the Home Office will now liaise with the Local Government Association to get a clearer picture of their costs.

What do you think of the decision to keep national licensing fees? Would locally-set fees be a better move? Comment below to let us know.