The late night levy, introduced in 2011, is a discretionary tool that local authorities may introduce to assist with the costs associated with premises opening between the hours of 12 am and 6 am and which sell alcohol.
Under section 142 of the Policing and Crime Act 2017, several changes to the late night levy were introduced. This will allow licensing authorities the power to apply the levy to late night refreshment premises to assist with the cost of policing the night time economy if they choose to do so and dependent on the outcome of a local consultation.
These changes were not commenced at this time following recommendations from the House of Lords Select Committee which carried out post-legislative scrutiny of the Licensing Act 2003. It requested that the Government delay the commencement of the 2017 Act provisions until they had considered the Committee's recommendations. As a result of these recommendations, the Government committed to consult on the application of the levy to LNR providers prior to commencing the changes that the 2017 Act would make. The consultation was delayed largely due to the pandemic but is now complete. The outcome of the public consultation was to give local authorities the option to offer a 30% reduction to late night refreshment providers that qualify for small business rate relief. This reduction is already available in relation to premises that supply alcohol.
Now that the consultation is complete, we are commencing the wider changes made via the Policing and Crime Act 2017 which will come into effect as of today. These include permitting PCCs the right to request that a licensing authority formally propose a levy and will require licensing authorities to publish information about how the revenue raised from the levy is spent. These changes will make the levy more flexible for local areas, fairer to business and more transparent. The levy will be an optional tool that local authorities can utilise to address alcohol-related crime and disorder.
Updated guidance to reflect the changes will be published on gov.uk.
[HCWS935]