London councils call for fairer licence fees
Pubs and bars in the capital could face paying more for their licences if new proposals from the Association of London Government (ALG) are adopted by the government.
The ALG has submitted plans to the Elton panel, which is currently reviewing licence fees and is due to report next month - asking for the main use of a building to be taken into acount when setting the cost of a licence, rather than just its rateable value.
The proposal is aimed at stamping out the anomaly which currently sees a place like the British Library paying more for its licence than any of the capital's late-night clubs and bars.
But the ALG is proposing that councils make up for the shortfall by levying new add-on charges on pubs and bars, depending on whether the premises is open after 11pm, sells alcohol as its main business; or whether there is live music.
The association has also suggested that businesses be categorised as small, medium or large according to the size of the areas open to the public. A premium would also be added to the basic licence cost if selling alcohol is the venue's main business. This would lead to pubs paying more for a licence than a similar sized restaurant.
Chairman of the ALG transport and environment committee Cllr Daniel Moylan said there was "a massive anomaly" in the system when a licence for a small bar in the British Library costs more than one for a nightclub or late night bar.
"This clearly needs addressing. While we are not claiming to have found the complete solution, we feel that the options we have put forward help address that imbalance," he said.
"It is also important that venues with the potential to cause problems for their local communities act responsibly and pay their fair share towards the cost of the licence and any enforcement needed."
The ALG is also suggesting that Westminster, Camden and Kensington and Chelsea councils receive compensation for the extra financial and administrative burden caused by the large number of licences they have to issue compared with the rest of the capital.
