Alcohol licensing: the late night levy

In England and Wales, local authorities have the power to introduce a “late night levy” on premises licensed to sell alcohol. The levy applies during a “late night supply period” (between midnight and 6am). The local authority chooses the length of time within this period that the levy will apply.

The net revenue raised goes towards the costs of policing the late-night economy. This must be split between the licensing authority and the relevant police and crime commissioner (PCC). At least 70% of the net revenue must be given to the police. The licensing authority can retain up to 30% to fund the services they provide to manage the night-time economy. These must be in connection with the supply of alcohol during the late-night supply period and related to arrangements for:

• the reduction of crime and disorder
• the promotion of public safety
• the reduction or prevention of public nuisance
• the cleaning of any relevant highway or relevant land in the local authority area

In July 2023, the levy was reformed to:

• allow licensing authorities to target specific geographical locations
• extend the levy to include late night refreshment outlets
• enable PCCs to request the licensing authority to propose introducing a levy
• require licensing authorities to publish information about how funds raised by the levy are spent

Further detail on introducing and designing a levy is available in Home Office guidance.