Ideal Business Consultants

Pubs in the UK should be aware of changes that are likely to have a negative effect on their bills.

Pubs are expected to face a major hike in licence fees, sending their bills soaring after lobbying by the Local Government Association (LGA). The British Beer and Pub Association (BBPA) however, has pledged set things straight.

Local councils will be allowed to set their own fees after convincing the Government that the current system cannot be sustained and has cost tax payers £100 million more than expected. As a result, the Coalition has introduced an amendment into the Police Reform and Social Responsibility Bill, which is due to become law next year.

Nick Bish, chief executive of the Association of Licensed Multiple Retailers said:

“The new plans will have a devastating impact on pubs, bars and restaurants across the country.”

“Councils are already facing significant budget cuts so the temptation will be all too great to use licensing fees as a revenue raising exercise.”

However, there will be a cap on fees. A spokeswoman from the Home Office explained this is due to consult on this later in the year. She said that under their proposal, Licensing Authorities will be able to set the level of the fee within a nationally-set cap. The level of the cap will be set out in regulations which will be consulted on before being introduced.

Martin Rawlings, director of pub & leisure at the British Beer & Pub Association said:

“In our meetings with the Home Office we have consistently made the point that if the government is intent on introducing locally set fees, then they must be capped in the same way as gaming licence fees. We will continue to lobby hard for a national cap on licensing fees in the regulations.”

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