The West End Commission, an independent body established by Westminster City Council in 2012, has issued a new report which calls for changes to be made to the licensing policies of local authorities in the West End of London (i.e. Westminster City Council and the London Borough of Camden). The report, published on 30 April 2013, recommends that a distinction be made between premises used for evening activities and those for night-time activities. The Commission noted that, in particular, this distinction should be drawn with regard to the introduction of the late-night levy.

Introduced under the Police Reform and Social Responsibility Act 2011, the late-night levy provides licensing authorities with the power to raise contributions from late night alcohol suppliers. These suppliers may be required to pay towards the cost of policing the night time economy if they authorise the sale or supply of alcohol beginning at or after midnight and ending at or before 6:00am. Each licensing authority may decide whether to adopt the late night levy and if deciding to adopt it, may determine any exemptions or reductions which are to apply. The Late Night Levy Regulations 2012 came into force in October 2012 to provide for the implementation of the levy although the Home Office notes that the earliest a licensing authority can expect to impose the levy is June 2013.

The Commission believes that the venues causing issues should be the ones to make the largest contribution in the levy. In its report, it highlighted that there are higher reported levels of alcohol consumption and alcohol-related crime in the West End, as opposed to in other parts of London and the rest of the UK. It drew a distinction in this regard between evening premises (use of which ends around 1:00am, such as restaurants and theatres) and night time premises (which tend to be alcohol-based, such as bars and clubs, the use of which goes beyond 1:00am). The Commission noted that greater flexibility should be afforded to those trading in the evening, as opposed to the night time venues, as it is the former which provide more employment and less nuisance.

The Commission called for a redesign of the current late night levy. It suggested that the following provisions would assist in creating a more effective and fairer levy:

- Applying the levy across a Special Policy Area, which is an area with a mix of uses where particular characteristics need to be protected and where particular issues, (i.e. high concentrations of alcohol-related crime and public nuisance), need to be addressed;
- Providing that certain types of Premises that are not alcohol-led, such as restaurants and casinos, be exempted from the levy;
- Basing the levy on venue capacity and not merely the rateable value of the premises; and
- Allowing the licensing authority to decide which conditions, if included, would allow for a reduced levy rate.

The Commission recommended that any such reform of the levy would need to be undertaken by the Home Office together with the Association of Chief Police Officers and the Local Government Association.

The attractiveness of the levy as a policing mechanism will be seen in the next few months, as many local authorities begin to consult as to its possible implementation. The integration of the Commission’s recommendations may depend on the success of the levy in its current state, a position which will be clearer by June of this year. It is unlikely that the levy in its current state will have a substantial impact on restaurant premises, as these type of premises usually end the sale and supply of alcohol at midnight, if not before. It will however penalise those premises, such as bars and night clubs, which trade into the early hours of the morning.

Please note that this information is provided for general knowledge only and therefore specific advice should be sought for individual cases.

 

For further information, please contact Andrew Nicklinson at or Paul Jagger at