Late-night levy won't make 'bad' licensees behave better, argues LGA

By James Wilmore

- Last updated on GMT

Related tags Late-night levy Local government

A senior local government figure has today argued the late-night levy will not make "bad" licensees behave better as it has not been set high enough....

A senior local government figure has today argued the late-night levy will not make "bad" licensees behave better as it has not been set high enough.

Cllr Richard Kemp, a vice-chairman of the Local Government Association (LGA), warned government ministers and MPs that at its current proposed level the 'polluter pays' system would not affect pubs' behaviour.

Giving evidence to a parliamentary committee examining the licensing shake-up, Kemp said: "The levy, as it is, is unlikely to make much of a difference.

"The good landlords want to help, but the bad landlords don't. At £1,000 for a premises it will not make a bad landlord behave better."

He added later: "You have to set it at a level that's worthwhile."

The committee, which includes Home Office ministers James Brokenshire and Nick Herbert, can make changes to the Police Reform and Social Responsibility Bill, which includes the controversial plans to overhaul licensing.

Among the current proposals, councils will be able to tax all on-trade and off-trade venues that stay open after midnight.

The rate set will depend on the rateable value of a venue. For example, an outlet with a rateable value between £4,301 and £33,000 will pay £768 a year.

However, the Home Office has indicated the exemptions could be offered for venues that are part of schemes, such as Best Bar None.

During the hour-long session, Martin Rawlings, the British Beer & Pub Association's director of pub & leisure, clashed with Herbert over the late-night levy.

Herbert, policing minister, pushed Rawlings on what the industry's alternative to the levy would be.

"My proposal is BIDS (Business Improvement Districts)," said Rawlings. "We are not against paying, but things should be done in a collaborative way."

He pointed to successful BID schemes in Birmingham and Nottingham, which he claimed had helped reduce crime and disorder.

Rawlings also highlighted that as the Bill stands, pubs that only open after midnight once a year, like New Year's Eve, would be hit by the levy.

"To address a problem in a town centre, it will affect a pub 50 miles away, which cannot be right," he said.

Jeremy Beadles, chief executive of the Wine and Spirit Trade Association, agreed it was "not fair to put a tax on a pub 10 miles away".

And Cllr Kemp agreed the levy should be focussed on particular problem areas, instead of being applied to a local authority's entire patch.

On the "vicinity" issue of allowing anyone to object to a licence, regardless of where they lived, Rawlings said only people who are "directly affected" should be allowed to make a representation.

MPs also quizzed the panel on raising the fine for persistently selling to children to £20,000. But all three argued the current £10,000 level was enough - and internet and proxy sales of alcohol were an issue that needed to be addressed.

The committee is still taking public evidence on changes to the licensing regime. To make a submission email: scrutiny@parliament.uk

Related topics Licensing law

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