DCMS deals variation fee price hike

So, the local authorities have decisively won the argument on fee levels. They have persuaded the Government to boost their income direct from the trade during transition by a hefty 50% and annual income is to rise by an even greater 60%.

Out of the window at a stroke go all the compliance cost assessments ­ so blatantly wrong from Day One ­ that the licensed trade would save £1.9bn over 10 years during the new system.

The licensed trade is being asked to cough up an extra £211m over the same period, with absolutely no guarantee that these fees will not rise again over the decade, of course.

With the current negative press about hours, it seems likely that many more pubs are going to have to fight even harder to gain extra time and that will mean extra cost.

One of the smaller but no less unpleasant price hikes announced by the Department for Culture Media & Sport last Friday was the introduction of a fee for variation during transition. It had been assumed from the consultation document that the one variation fee, which was large by any standards, even for those who wanted to stay as they are, would cover both parts A and B of the application. After all, they were on the same form and the application was made at the same time.

Now there is to be an additional charge for variation, which for most pubs will be either £60 or £80. No chance to comment on this, because it did not form part of the consultation ­ it's just been added in. That means a band B pub with a rateable value of up to £33,000 will pay £250 for transition instead of the proposed £150. Pubs in band C, which form the bulk of the remainder, will pay £395 instead of £250.

You will pay the extra even if you just want half an hour more at weekends, or perhaps Sunday morning opening. The size of your variation is not relevant.

The argument about the multiplier for high-rated city centre drinking venues does not make too much sense with regard to transition: the cost of processing their applications will be the same as for everyone else. But remember that a multiplier can multiply again and again, so exactly which type of premises are liable needs careful scrutiny in the weeks ahead.