Fears of 'double whammy' from government plans

A trade chief has warned the industry could face a "double whammy" as councils withdraw services and local people are given more power to complain.

Chancellor George Osborne revealed in the comprehensive spending review today that council funding will be cut by 7.1 per cent.

And Neil Robertson, the BII's chief executive, suggested this will mean councils investing less in areas such as Best Bar None, taxi marshalling and clearing up alcohol-related problems. Meanwhile, the licensing shake-up, is set to give local groups more opportunity to complain about pubs.

"Operationally this will cost the trade money," he said. "Local authorities will withdraw from services that we need."

He added: "This will be a double whammy as we deal with the licensing problems that will give local people an enhanced right to complain."

Kate Nicholls, head of communications at the Association of Licensed Multiple Retailers, said the cuts could have a "major impact on consumer confidence as it's just starting to return".

However, she said the industry has "the potential to be a major job creator", as nearly half a million public sector workers are expected to lose their job by 2014.

But she added: "If we are to do that the government must not create any additional burdens. There has to be some joined-up thinking from them on this.

"It can't be introducing extra costs such as hiking licence fees and bringing in a late-night levy. We are perfectly happy to play our part, we can create jobs, but not if we are going to have these additional costs."