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Southwark Council becomes latest London borough to back introduction of late night levy

The London Borough of Southwark has approved the introduction of a late night levy across the whole borough from 1 September 2019.

A report ahead of a meeting of the council assembly on 17 July said:

  • The levy would apply from 00:01 to 06:00 hours.
  • Net monies raised by the levy after the payment of administration would be used as follows: to pay for the full costs of the police night time economy team; to pay for the council resources within the night time economy team; the surplus to be decided by a board made up of representatives for the council, Police, licensed trade and residents.
  • No 30% reductions were to be applied.

Exemptions to the levy are to be applied to the following categories:

  1. a hotel or guest house, lodging house or hostel at which the supply of alcohol between midnight and 6am on any day may only be made to a person: (i) who is staying at the premises, and (ii) for consumption on the premises;
  2. a theatre at which the supply of alcohol between midnight and 6am on any day may only be made to a person for consumption on the premises who is: (i) a ticket holder in relation to a relevant production at the premises; (ii) concerned in the performance, organisation or management of the relevant production, or (iii) invited to the premises as a guest to attend an event to which the public do not have access;
  3. a cinema at which the supply of alcohol between midnight and 6am on any day may only be made to a person for consumption on the premises who is: (i) a ticket holder in relation to the exhibition of a film at the premises, or (ii) invited to the premises as a guest to attend an event to which the public do not have access;
  4. a club which is registered as a community amateur sports club by virtue of section 658 of the Corporation Tax Act 2010(2); and
  5. a licensed premises which is authorised to be used to supply alcohol for consumption on the premises between midnight and 6am on 1st January in every year (but are not so authorised at those times on any other day in any year).

A copy of the report can be viewed here.

Commenting on the decision, UKHospitality Chief Executive Kate Nicholls said: “Obviously, we are incredibly disappointed that Southwark Council has chosen to ignore the concerns of local businesses and residents. Pubs, bars and nightclubs that have helped drive the revitalisation of the area and foster a fantastic community spirit are now going to be penalised.

“By introducing a discredited tax, that the House of Lords recommended be abolished, Southwark Council has proven it only cares about revenue-raising, rather than supporting the local community. Local businesses, their employees and customers are the ones who will suffer.”