Vertical Markets

Late night levy

by Mark Rowe

New powers to help pay the nation’s £11bn a year bill for alcohol-related crime and disorder come into effect at the end of October.

According to the Coalition, the measures will give local authorities the opportunity to ensure those selling alcohol help pay towards the costs of cleaning up and policing the effects of excessive drinking in towns and cities across the country, as well as restrict the sale of alcohol in the early hours. From 31 October local authorities will have the discretion to:

charge a levy for late night licences to contribute to the costs linked to late night drinking, such as extra policing and street cleaning
introduce an Early Morning Restriction Order (EMRO) to restrict the sale of alcohol between midnight and 6am
Figures reveal that almost half (44 per cent) of all violent crime is carried out by people under the influence of alcohol and 67 per cent of violent incidents occur in the evening.

Minister for Crime Prevention Jeremy Browne said: ‘These measures are not about stopping responsible drinking but designed to tackle the minority who cause alcohol-related crime and disorder in our local communities.

‘It is reasonable to expect those profiting from the sale of alcohol to help pay the costs of policing, rather than expecting taxpayers to foot the entire bill.’

The new measures form part of the Government’s alcohol strategy which according to the Coalition aims to turn the tide against irresponsible drinking.

Both powers have been introduced as part of the Police Reform and Social Responsibility Act 2011 and according to the Home Office these measures could generate about £17m per year in England in Wales, with at least 70 per cent of that figure going to police and the remainder to local authorities.

The new Late Night Levy Regulations which come into force at the end of this month and allow local authorities to charge a new tax on pubs, off-licenses and other businesses that sell alcohol after midnight, give councils the discretion to exempt businesses that are part of Business Improvement District (BID) areas.

The Association of Town Centre Management and its National BIDs Advisory Service has worked with the Home Office, police, councils and other trade bodies on this guidance and welcomes this decision which can ensure premises within BIDs, who already pay extra rates, would not be disadvantaged by the introduction of this levy.

The legislation comes into force on October 31, and the Home Office anticipates that charges will begin being applied by councils in England and Wales as early as next June. Charges will be on a sliding scale and there are a variety of exemptions which councils can apply.

Said Jacquie Reilly, director of the National BIDs Advisory Service, “The draft guidance originally called for charges to apply unless the BID focused entirely on the night-time economy. However, a survey of our BID members showed that 97% undertook projects and services for the night time economy but less than 1% of BIDs were entirely focused on it.

“Our aim has been to ensure the Guidance does not limit the exemptions to the 1pc.”

Licensing authorities will be able to impose a Late Night Levy on all premises within their area who are selling alcohol between midnight and 6am. Requests to consider introducing a levy can come from anyone in the area but it is anticipated that the majority of requests will come from local Police forces.

The licensing authority will be required to undertake a consultation before making a decision and the levy will cover the entire Licensing Authority area. A maximum of 30pc can be retained by the Local Authority with the remaining 70pc to be spent by police.

Said Reilly, “The stark contrast between a BID, which delivers services to address issues the local business community have identified and agreed to fund through a democratic voting process and the Late Night Levy, which can be imposed by Local Authorities has not been lost on businesses.

“We remain concerned that faced with a compulsory levy with no say in how it is spent, businesses in existing and prospective BID areas will feel they have no choice but to vote against extending or introducing the managed approach to BIDs that is offered, despite their track record of success.

“We need to ensure locations which already have a positive and proactive local business community contributing to a BID are exempt from a Late Night Levy.

“This exemption is not automatic. BIDs will need to successfully demonstrate to their Local Authorities that they undertake work within the night-time economy and have a satisfactory crime and disorder focus.”

For more information on the Late Night Levy visit –

http://www.legislation.gov.uk/ukdsi/2012/9780111526309/contents

Background

The not-for-profit ATCM includes over 600 town centre, city centre and Business Improvement District locations.

Earlier this year it launched a 10-point manifesto for town centres and high streets which can be downloaded at http://www.atcm.org/mfiles/files/971-ATCMManifestoA42.pdf and this summer launched an encyclopaedia of ways to help the High Street, at http://www.100ways.org.uk

The ATCM has been involved with the Mary Portas Review since it was first announced last year and organised nine workshops across England on behalf of the Department of Communities and Local Government to help prospective Portas Pilots to put their funding applications together.

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