Agenda item

Report of the Director of Markets & Consumer Protection.

The Committee considered a report of the Director of Markets & Consumer Protection providing Members with a 12-month review concerning the Late Night Levy covering the period 1 October 2019 to 30 September 2020.

Members were advised that this annual report differed from previous reports due to the impact of the pandemic on premises from March 2020. Paragraphs 11-14 were highlighted to Members which detailed how Officers were handling collection of the Levy fees from premises and it was acknowledged that only a very small number of premises had been able to trade after midnight. The statutory requirement to collect the Levy has remained and the licence must be suspended if not paid.

Officers provided two options regarding the City Corporation’s policy for collection of the Levy. The first was to scrap the Levy scheme altogether and reintroduce it at a later date; this would require significant work and public and stakeholder consultation. The second approach was a soft suspension giving notice of non-payment and a delayed suspension. This was the favoured approach offering as much flexibility as possible when collecting the Levy by stretching the suspension to the limit as the legislation did not specify when to suspend. When premises are able to trade past 12pm, premises will be asked how they plan to settle their Levy charge which may be two years’ worth of charges. Payment plans may also be considered.

A Member wished to understand the type of businesses paying for the Levy and, in particular, the difference between big chains versus independents as Members were keen to support SMEs. Officers confirmed approximately 90% of the premises paying the Levy belonged to larger chains.

In response to a question asking if it would take three months to stop the scheme due to the consultation process plus approximately three months to restart the scheme, Members were informed that they were already within a Levy year meaning that anyone that belonged to the scheme would still be liable to pay for the current year. If this was to be scrapped, it would have to be the next Levy year starting 1 October 2021 and it would take three months to complete consultation. Whilst this could be reintroduced at any time, approximately three months would again be required to allow for sufficient consultation.  

Members supported the soft suspension approach as most pragmatic and considerate for business owners and . It was recommended that all Levy premises also be offered a discount for the Safety Thirst Scheme.

A Member highlighted the extensive enquiries and lobbying that took place at the beginning of the first lockdown regarding the Levy and advice at the time was that the City Corporation was legal obliged to charge the Levy fee. Members considered whether it was necessary for Officers to bring a paper detailing a process of consultation to leave the scheme for 12 months and rejoin after this point and the implications.

With regards to a query concerning the annual cost of the Levy, Members were informed the bands of levy were presented in Table 1. Members agreed the costs were fairly modest and had not been challenged by premises. It was noted that premises also had the option to change their hours if the Levy was a burden. It was ultimately decided that Officers continue to monitor the situation and make a decision on the scheme following Government advice.

RESOLVED – That Members:-

·         Note the contents of this report;

·         Agree the policy regarding the collection of Levy outlined in paragraphs 11-14