Be ready for councils' new licensing powers
To curb late-night drinking local authorities now have the power to tax premises that trade beyond midnight. Matthew Phipps explains the Late Night Levy and Early Morning Restriction Orders
THE PROBLEM As part of the Government's strategy to curb late-night drinking, local authorities have been given the responsibility of introducing, at their discretion, Late Night Levys (LNL) and Early Morning Restriction Orders (EMROs).
THE LAW The LNL will act as a tax on premises that trade beyond midnight. However, those premises that have the benefit of a licence beyond midnight, even if they do not actually use those hours, will still be liable to pay. The levy is based on the licensing fee bands and will range from £299 to £4,440 per annum. However, it is likely that most premises will pay between £768 and £1,493.
All premises in areas where EMROs are introduced will be prohibited from selling alcohol after a set time until the following day. Specific "zones" can be targeted, in the same way as cumulative impact zones, which gives the council the flexibility to set up EMROs.
EXPERT ADVICE All premises licensed to sell alcohol will be caught unless they fall within a prescribed exemption. Both the LNL and EMRO have limited exemptions, which are discretionary and therefore for the council to choose whether they apply. For example, premises with overnight accommodation are potentially exempt from the LNL, but only where alcohol is served to overnight residents. However, there is no exemption for restaurants that sell alcohol past midnight.
There will be the potential for up to 30% reduction from the LNL for premises that are accredited by certain best practice schemes such as Best Bar None. Again, it will be at the discretion of the authority whether these will apply.
When it comes to EMROs, hotels that have room service or mini bars, will be exempt in the bedrooms only. Those whose bars stay open into the early morning will be forced to close like all other premises. It is likely that a terminal hour of around 2am in the week and 3am at weekends may be applied. However, local authorities can introduce EMROs from midnight onwards. The only other exemption to trading late in an area subject to an EMRO is New Year's Eve.
A council thinking about implementing LNL or EMRO should seek the views of those having to pay first. Leisure operators may want to consider, if introduced, whether there is a benefit in cutting back any hours on your licence and look at whether there are reductions available for joining best practice schemes.
If both are introduced, a premises currently selling alcohol into the early hours could find arbitrary last orders imposed by the EMRO and a tax being levied on their business for going after midnight by the LNL.
TO DO CHECKLIST It's expected that consultations will begin toward the end of this year, with possible first introductions from spring 2013. There is a mandatory consultation period for EMROs during which those likely to be affected can have their say. As such, leisure operators should:
â- Perhaps form a pressure/lobbying group with other affected businesses if there is a consultation.
BEWARE Those who serve alcohol should check their existing licensing agreements and if in doubt seek expert advice to make sure your business is compliant with the potential introduction of LNL and EMRO or face costly repercussions.
Contact Matthew Phipps is head of the licensing team at TLT Solicitors
matthew.phipps@TLTsolicitors.com
