Drink law 'costs town halls £97m'

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Enforcing round-the-clock drinking laws in England and Wales has cost local councils £97m, a report suggests.

It said council decisions were to blame for £54 million of that shortfall and local authorities should therefore meet this cost themselves.

But the report panel, chaired by Sir Les Elton, said the government should reimburse the remaining £43 million.

Councils took over licensing from magistrates when the 2003 Licensing Act came into force in November 2005.

However, they incurred costs before that date as they had to prepare for the new law's introduction.

Despite repeated assurances to the contrary, local authorities have been left facing a financial black hole Local Government Association

Licensing minister Shaun Woodward said he would fully consider the report's request before announcing his response.

The government intended that income from fees would cover administration and enforcement costs.

But the Local Government Association (LGA) says both the government and Sir Les, who was responsible for examining the act's impact, failed to reflect the pressures the new laws placed on councils.

The LGA wants ministers to reimburse the full £97m cost and is warning that the deficit could have an impact on future council tax bills.

'Meet full costs'

LGA chairman Lord Bruce-Lockhart said: "Councils have pressed ministers at every possible opportunity to fulfil their pledge that the new licensing regime would not leave council taxpayers out of pocket.

"Despite repeated assurances to the contrary, local authorities have been left facing a financial black hole."

He added: "The key issue now is that ministers respond to the report as quickly as possible so that local authorities can know who will get what cash, when and where.

"The bottom line is the government must make good its pledge that it would meet the full costs to local government of the Licensing Act."

Sir Les also said that licence fees should be increased by 7% over the next three-year period from 2007/08 to close the gap between the cost of implementation and the amount licences bring in.

The British Beer and Pub Association is opposed to the increase, which it says is inflationary and "not helpful" to business.

Consultation pledge

Mr Woodward said that any proposals to increase fees would be followed by a public consultation exercise so give licensees, local authorities and the public their say.

He said the government would publish its full response to the report shortly. The act allowed pubs, bars and clubs to apply to extend their drinking hours.

Premises selling food or alcohol after 2300 all needed to apply for a new licence, even if they did not intend to change their opening hours.

Residents are also now able to ask local authorities to review licences.