Money talks
The licensing fees have yet to be confirmed - the nervous wait begins now, writes Daniel Pearce.
It was nice of licensing minister Richard Caborn to wait until The Publican Conference to finally unveil the new licensing fees - but it would have been better for licensees if they could have been confirmed a long time ago.
The new fee system, which includes an £80 to £500 one-off payment for a licence and annual fees of between £40 and £225, based on rateable value, are now finally in the public domain. A consultation period will run until December 23 - just six weeks ahead of the First Appointed Day for the new licensing regime.
Mr Caborn said the new system will free up £80m for local authorities and police to spend on tougher action against rogue premises. Tell that, then, to local authorities such as Westminster which are pushing for the fees to be increased to help them cover costs. Westminster Council launched an astonishing broadside at the government last week while similar noises are coming from other local authorities.
Peter Barrow, head of licensing at Birmingham City Council, said: "This could well cause considerable problems for our department. The fees are too low - we'd like to see them increased."
Mr Barrow described how, under the current system, the National Indoor Arena in Birmingham pays £14,000 a year for a public entertainment licence - but will only pay a £500 one-off payment under the new system, and a lower annual fee. "Multiply that a few times and the penny begins to drop," he said.
Jim Hunter, head of licensing at Taunton Deane Borough Council, says local authorities could be forced to cut corners unless funding is increased.
"The maths are very difficult. I can't see how this is going to be self-funding, unless we cut back on inspections and safety checks," he said.
The Local Government Association (LGA) is surveying its members over the next two weeks to gauge national reaction to the fees prior to the end of the consultation.
"The fees look worryingly low and some of the assumptions they have made will need some challenging,"said Trish O'Flynn, who leads on policy issues for the LGA. "These funds are supposed to cover the start-up costs too."
She complained that the government currently provided a £25m subsidy to cover a shortfall in licensing cash - while the new system is expected to be entirely self-funded. Nick Bish, chief executive of the Association of Licensed Multiple Retailers (pictured), challenged Mr Caborn over the fees at the conference.
"The problem depends on how the local authorities care to spend their money," he told The Publican.
"If they are going to carry on making regular inspections of premises they are going to be out of pocket. But local authorities must not try and make this a cash cow. We in the industry have to keep asking questions."
Although the fees obviously represent an increase on current levels, pubs can be satisfied that the proposals are broadly in line with what has been previously mooted by the government. But with a barrage of demands for the fees to be increased now expected to go into the consultation, they face a nervous time before seeing these figures confirmed.
The proposed fees
- £80-£500 one-off payment for a licence
- £40-£225 annual fee
- £37 for a personal licence
- £21 for a temporary event notice
For further details visit: www.culture.gov.uk or call 020 7211 6200
Views or comments on the new system can be sent to: The Alcohol and Entertainment Licensing Policy Branch, Tourism Division, 3rd Floor, 2-4 Cockspur Street, London SW1Y 5DH or email to feesconsultation@culture.gsi.gov.uk
The closing date for consultation is December 23.
