Warning for trade as licensee sees cost of PEL rise 572 per cent

The case of a Welsh publican who saw the cost of his entertainment licence rise by a whopping 572 per cent, has sent alarm bells ringing throughout the trade.

Terry Rodford, who runs the Feather Inn in Ruthin, Denbighshire, said he was "disgusted" at the plans to hike his current public entertainment licence (PEL) fee from £250 to £1,430.

Denbighshire Council denies that it is making profits from the new charges, claiming the money will be ploughed back into the community to combat noise and disorder.

But the situation is being viewed as a warning of things to come when licensing control switches from magistrates to local authorities.

Mr Rodford (pictured)​ told thePublican.com: "My licence was £250. Now my basic charge is £156 plus £182 for each day I open - which is seven days a week.

"At the end of the day it adds up to £1,430. That's almost six times as much as I'm paying at the moment, it's ridiculous."

But defending the council's decision, Ken Ewing, head of public protection, said: "We are not profiteering from the extra costs. The problems that late-night venues are causing our community cost us a fortune in noise enforcement and disorder and we will use the money to combat these.

"Publicans need to ask themselves if they need a PEL. Some licensees are applying for them because they want to open late, not because they are putting any entertainment on."

Mr Rodford argued: "We hardly ever have any trouble in Ruthin and only open until 11pm. We must be paying the consequences of the local nightclub. I dread to think what will happen when the council takes over licensing because it will have the last word."

Denbighshire is not the first council to be accused of profiteering from licence fees. Indeed, publicans' biggest concern about switching to local authority control is the potential price hikes, based on their current experiences with PELs.

Under the new Licensing Bill, which is due to be introduced in 2004, fees will be set centrally. It is hoped this will put an end to this practice and ensure that all licensees pay the same. However, there will still be some regional variations.

"Kill the bill" campaigner Stuart Neame, of Kent brewer Shepherd Neame, said: "Local councils are ripping off licensees even though they are not allowed to make a profit."

Gareth Johns, spokesman for the Licensed Victuallers' Association Wales, was shocked at the news.

"Good God, it's scandalous," he said. "It's simply not justified. The policing costs should be covered by the rates.

"The government is suggesting that the one-off cost for applying for a premises licence will be between £100 and £500 under the new bill, with an annual charge of between £50 and £150, so how can the council justify this? In Wales, the costs for PELs range from £70 to £1,600."

Chief executive of the Federation of Licensed Victuallers' Associations Tony Payne agreed.

He said: "Councils should charge the cost of administration. Licensees pay their rates which is supposed to cover policing and things like that."

The Department for Culture, Media and Sport said details of the fees and the guidance were still "under discussion". It is understood that they will be available later this month.