Fees rise is not a bad result

Licensees struggling with one cost rise after another will be angry to learn that licensing fees are set to rise by 7%. They've a right to feel even angrier when they recall they used to pay £30 for their licence, which lasted for three years. Now they will be paying £193 every year. That means the cost of licensing their pub has risen by 1,830% since November 2005. Throw in the £1,500 it cost to obtain the new licence in the first place, and the scale of Gordon Brown's smash and grab raid on the pub trade becomes all too apparent. This from a government that said the new licensing regime would be cheaper than the old.

Yet that's what's happening in every area of British life these days. We're all being fleeced to pay for "improvements" that turn out to be anything but.

In truth, although we all quite rightly resent having our pockets picked by government, this licence fee increase is actually a very decent result for the trade. The 7% rise over three years is, in fact, a 7% rise over four and bit years, the period since the new Licensing Act began. That equates to a 1.625% rise each year, which, when real inflation is running at double that at least, is not a bad result at all. For such a helpful outcome, the trade owes a debt of gratitude to Punch's Francis Patton, who has argued rationally and persuasively against dumping costs on pubs and clubs.

That said, no doubt the local authorities will find this a hard settlement to swallow, and will lobby hard to secure a bigger rise from Tessa Jowell. But such is the eminence of those on the Elton Committee which has just reported on the fees that she will find it very difficult to overturn their conclusions.

Given the extreme flakiness of government at the moment, with everything on hold for Gordon Brown's ascension and the political musical chairs that will follow, it's probably not even going to be Tessa Jowell who decides on Sir Les Elton's findings. But her successor will be equally compromised if he or she is tempted to fling the report back and demand fresh thinking.

So, at last, a decent result for trade.

Well done, Francis Patton.

Just over 21 weeks to go until the smoking ban comes in - and far too many licensees have not got their act together. As we've been saying for months, you've got to prepare. Now.