Consultation: Late Night Levy

The Home Office has launched a new consultation regarding charges which apply to late-night refreshment (LNR) providers under various Late Night Levy (LNL) schemes across England and Wales.  The consultation does not concern other licensed premises such as pubs, bars and clubs which can also be subject to LNL schemes. 

Legislation allowing LNL schemes was introduced in 2021, since that time there has been limited uptake of the powers by Local Authorities and we have recently reported a net reduction in the modest number of existing schemes.

Nevertheless, the Home Office is proposing two options regarding the setting levy rates:

Option 1

Base LNR levy charges on the current licence fee system as for alcohol venues, with no option for licensing authorities to apply a discount.

• The Government does not feel it is justified to bring in any new levy bands as the current system already takes into account the size and revenue of businesses.

As such, the levy charges that will be applicable to LNR premises will be linked to the current licence fees system under the Licensing Act 2003, with LNR premises being placed in bands based on their premises rateable value.

Option 2

Base LNR levy charges on the current licence fee system as for alcohol venues, with the option for licensing authorities to offer a 30% discount to LNR premises qualifying for the Small Business Rate Relief.

• Under Part III of the Local Government Finance Act 1988, licensing authorities can offer a reduction to licence holders in relation to premises that are in receipt of Small Business Rate Relief (SBRR). This reduction is currently only available in relation to premises that supply alcohol for consumption on the premises.

• This option is similar to option 1 above, with the difference that licensing authorities will also be able to offer this SBRR reduction in respect of qualifying LNR premises. The Government is mindful of not imposing unnecessary or disproportionate charges on LNR premises as many are small businesses and, by definition, are licensed to be open late at night.

This consultation begins on 9^th January 2023 and ends on 3^rd April 2023.

We shall keep you updated.