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Late Night Levy

Late Night Levy

Published: 3 March 2016

What do the London Borough of Camden, Islington and City of London all have in common? The answer is that they have all introduced a Late Night Levy.

Camden Council voted to introduce a Late Night Levy from 25th April 2016 which means that operators opening between midnight and 6:00am will be ordered to pay up to £4,400 a year to the Local Authority.

Now, Tower Hamlets has become the latest London Borough to consult on introducing Late Night Levy. The council argue that £336,752 is spent every year on extra police presence to deal with problem drinkers at weekends and 200 alcohol related ambulance call outs take place in the borough each month. If the Late Night Levy in Tower Hamlets goes ahead, this charge will apply to all premises that sell alcohol from midnight to 6:00am, although members of the Best Bar None scheme would receive a 30% discount. Tower Hamlets operators, just like their counterparts in Islington, City of London and Camden could have to pay the same amount of up to £4,400 a year to the council.

Tower Hamlets have stated on their website that:

"The Government considers businesses that profit from selling alcohol between these hours should contribute towards the costs of managing the night-time economy, rather than relying on other tax payers in the community to bear the full cost.”

Trade bodies have long argued that the Late Night Levy is an unfair burden on local businesses and threatens the work of schemes like Best Bar None. Camden Council had fierce opposition from locals and the Association of Licensed Multiple Retailers. Some local bar owners have complained that the combined impact of the Levy, rent increases and the living wage may wipe out profits and mean that they can no longer employ apprentices.

The London Borough of Towers Hamlets is now consulting with stakeholders who have until Sunday 17th April to give their views.

To comment on the consultation, please click here.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.