New banding system to be brought in

The level of fees payable under the new Licensing Bill could relate to pub turnover and location.

Speaking at the Association of Licensed Multiple Retailers' annual meeting yesterday, Andrew Cunningham, head of alcohol and licensing at the Department for Culture Media and Sport, confirmed that a new banding system would be brought in to ensure that small pubs pay less than their larger rivals.

One solution currently being discussed is fees being related to a pub's rateable value, which takes turnover and location into account.

"This will mean that fees will be higher in say, central London, than they would in Newcastle," he said.

He confirmed that ministers were adamant that all fees should be set centrally and not through local authorities.

"The fees discussed are currently between £100 and £500, depending on the band a pub falls into," Mr Cunningham added. "I cannot however confirm that this will be the case."

The bill is currently on schedule to gain Royal Assent in July and is likely to become law in summer 2004.

He said the transitional period would be between 12 and 16 months, which goes against the Local Government Association's (LGA) initial recommendation of 33 months.

However, Mr Cunningham said: "The LGA has come a long way in recognising what would be required of it."Its initial bid of 33 months was made before the proposals were published."

Susie Kemp, chairman of the LGA's Public Protection Executive, which is leading on the Licensing Bill, said: "We would prefer to have a transitional period of 18 to 24 months, and we will be arguing the case for that with the government.

"Hopefully there will be some flexibility within the system so councils with larger numbers of pubs can have more time."