Police in late night levy storm

Police will be under no obligation to spend money raised from the late-night levy on policing the late-night economy in that area, the Publican's Morning Advertiser (PMA) has learnt.

It is understood licensees may face the prospect of having to pay up to £4,400 a year for the levy and see no direct extra benefits from police.

Under the proposed levy, which could hit pubs and clubs open after midnight, councils will receive 30% of the costs with 70% going to police.

Police will be free to spend the money how and where they see fit — with no conditions attached. The news emerged following a series of meetings between the trade, local authorities, police and Home Office officials.

"The police do not have to ring-fence money raised for the late-night economy," said Kurnia Group director Michael Kheng, who represented the BII [British Institute of Innkeeping] at the meeting. "Surely that is wrong."

British Beer & Pub Association chief executive Brigid Simmonds said: "It is amazing there is no requirement for the police to spend the money raised in that area. There's no control in place."

However, a Home Office spokeswoman said: "The intention has always been for the police portion of the levy to be spent on policing of the night-time economy."

Silver lining​

Local authorities will be able to choose which premises will be exempt from the levy and which are due reductions from a central list.

Reductions could be offered for venues participating in Best Bar None or pubwatch schemes but it will be at the discretion of the local authority.

The PMA understands that police are generally against any exemptions and at least one local authority has already stated it would not offer any exemptions unless forced to do so.

One silver lining for the pub trade is that the regulations and red tape around implementing a late-night levy seem to be growing by the day, according to observers, which may render them unusable for local authorities — much like alcohol disorder zones.

The proposals are expected to include an exemption for New Year's Eve and other special occasions, such as the royal wedding, but not for bank holidays.

The Home Office is set to hold a 12-week consultation over the summer, with implementation of the legislation set for October 2012.

Further late night levy fears​

Licensing hours:​ If a levy is introduced after a set time, venues will be free to change their hours to avoid the levy. However, what happens if the levy is repealed? It will not be free to get the hours back and extra conditions may be attached.

Business improvement districts (BIDs):​ Why would a pub continue to pay voluntarily under a BID if it had to pay a levy on top of that?

Community pubs:​ May be penalised for opening an hour later at weekends for its community, despite having no record of trouble, and being out of town. This is because a levy will be applicable across the whole licensing district.