Council lobbies Government for support for licensed trade

In 2013 the council became the first in the country to implement the Late-Night Levy – an annual fee of between £299 and £4,440 imposed on 240 licensed premises across the city.

It raises about £350,000 a year which is spent by the council and the Police and Crime Commissioner on reducing crime, disorder and the impact of the night-time economy on the city centre. 

But in recent weeks the licensed trade and CAMRA have urged the council to reduce the levy to help struggling pubs which have been forced to close since March as part of the Government’s lockdown.

The fees are set centrally by Government – not the council – but now city council leader Cllr Nick Forbes has written to the Government asking them for councils to be given new freedoms so they can waive or reduce the fees according to local need.

In his letter to Simon Clarke, Minister for Housing, Communities and Local Government, Cllr Forbes, said the council was “acutely aware of the impact of COVID-19 on the local economy, and our local businesses.”

He continued: “In the current climate, we are being asked by the licensed trade to reduce their Levy Fee due to forced closure and lack of income. Our Lawyers and the LGA have confirmed that councils currently do not have discretion to waive or alter fees due under the Licensing Act 2003 with the exception of those set out in regulations (reductions for Best Practice, exemptions for certain types of businesses).  

“Whilst we value the income from the Levy Scheme and the best practice it is underpinning, I urge you to consider what additional flexibilities can be given to local councils to set their own fee structures and have discretion for waiving or altering fees under certain circumstances.” 

Cllr Forbes concluded: “We need you to do this as soon as practically possible so that we can support our local licensed businesses during this unprecedented crisis.”

Northumbria Police and Crime Commissioner Kim McGuinness said: “The Late Night Levy plays an important role in helping keep the city centre safe and popular, funding services that make sure everyone can enjoy a good night out.

“But the bars and clubs that pay this levy have faced a difficult time as a result of the Coronavirus restrictions, and that has placed many jobs at risk.

“It’s vital the Government acknowledges this and allows some local flexibility on the rate they set. There is always a balancing act on how and when to use this levy, but these venues are an important part of our regional economy and right now they need our support.”

The amount of levy a business pays is dependent upon the rateable value of the property. The Newcastle scheme has been deemed a model of best practice and has been used to fund taxi rank marshalls, Street Pastors and extra police patrols as well as street cleansing. Businesses who meet the council’s high standards can qualify for a 30% reduction as part of a Best Practice Scheme but the new freedoms the council wants would allow it to waive or reduce the fee at their discretion.