LGA blasts Home Office delays on move to locally-set alcohol licensing fees

The Local Government Association (LGA) has criticised the Home Office for delaying the abolition of nationally-set alcohol licensing fees until October 2014, a move estimated by the LGA to cost taxpayers £1.5m each month.

Since 2005, councils have only been able to levy fixed national licensing charges, depending on the type of application, which the LGA said failed to reflect the full costs to licensing authorities of dealing with from applications from pubs, nightclubs and off-licences.

Fees generally range from £21 to £37 for a personal licence and £100 to £635 for a premises licence. The LGA estimated that the deficit between fees and costs has reached more than £150 million since the system began which, it said, represented a taxpayer-funded subsidy for the drinks trade.

The commitment to introduce locally-set licensing fees was contained in the Police Reform and Social Responsibility Act 2011. Once enacted, the proposals will enable councils to charge fees that reflect what they consider the actual costs of an application to be, although they will be prohibited from making a profit from licensing fees.

Councils already have the ability to set the fees for licensing and regulating gambling premises following the introduction of the Gambling Act 2005. The fee levels enable the council to recover all reasonable costs associated with these licensing functions, including the cost of determining and issuing premises licences and as well as associated functions such as inspections and enforcement.

Calling for the government to implement locally-based as soon as possible, Cllr Mehboob Khan, Chair of the LGA’s Safer and Stronger Communities Board, said: “Councils want to support good local pubs but cannot be expected to continue picking up the tab for licensing fees which are outdated and not fit for purpose.

“There is common ground among councils and the industry on the need for reform, along with a growing body of opinion that nationally-set fees are unfair, and some even say illegal, but the Government continues to drag its feet and break its promise to allow locally-set fees.

“As well as meaning more taxpayers' money could be spent on frontline services, a more flexible licensing system would help councils support responsible venues which enrich local communities and put pressure on those which encourage excessive drinking, noise and high street mess."

In a statement, the Home Office said that it expects  the changes to be in place by "next summer". It said: "The government has acted swiftly to give local councils much stronger powers to tackle irresponsible premises and cut red tape, including enabling them to impose a levy on businesses which sell alcohol late at night.

"The introduction of locally set licensing fees affects a wide range of businesses and community groups and we need to get it right. The government remains committed to introducing locally set licensing fees and will progress this as fast as possible."