Other Licences and Permits

Late Night Levy: Which Premises Pay It and How Much

The late night levy explained: how councils adopt it, the hours it applies to, the charge by rateable value band, the exemptions and reductions, and how to check whether your area has one

The late night levy is an annual charge that a licensing authority can impose on every premises in its area licensed to sell alcohol during a late night supply period, to pay for policing and cleaning up the night-time economy. It was created by the Police Reform and Social Responsibility Act 2011 and adopted by a minority of councils, mostly in cities and large towns. If your council has one and your licence permits alcohol sales in the levy hours, you pay it whether or not you actually trade late. This article explains how it works, how much it costs, the exemptions and the way most small venues avoid it.

Key takeaways

The late night levy is an annual charge adopted by some councils on premises licensed to sell alcohol between midnight and 6 am, based on the hours on the licence.

It costs £299 to £1,493 a year by rateable value band, more for alcohol-led premises in the top bands.

Exemptions and a 30% best practice reduction are decided locally.

A free variation to cut licensed hours out of the levy period is the usual way for small venues to avoid it.

How a Levy Is Adopted and When It Applies

A licensing authority adopts a levy for its whole area after consultation, setting a late night supply period that starts no earlier than midnight and ends no later than 6 am. Any premises licence or club premises certificate that authorises the sale or supply of alcohol at any time within that period is liable, based on the hours on the licence rather than the hours traded. Since 2011 around a dozen authorities have adopted levies, including Newcastle, Nottingham, Cheltenham and several London boroughs, and some have since revoked them in favour of business improvement districts. Check your council's licensing pages or ask the licensing team.

What It Costs

The charge is set nationally by the same rateable value bands as the premises licence fee. Band A pays £299 a year, Band B £768, Band C £1,259, Band D £1,365 and Band E £1,493. Premises in Bands D and E that are used exclusively or primarily for the sale of alcohol pay a multiplied rate: £2,730 and £4,440. The levy is collected with the annual premises licence fee and non-payment leads to suspension of the licence in the same way. At least 70% of the net levy goes to the police and the rest to the council for services connected with the night-time economy.

Exemptions and Reductions

Authorities can exempt categories of premises when they adopt the levy: premises with overnight accommodation, theatres and cinemas, bingo halls, community amateur sports clubs, community premises, country village pubs, premises that open late only on New Year's Eve, and businesses in a business improvement district. They can also offer a 30% reduction to premises in a recognised best practice scheme such as Best Bar None or Pubwatch. Which exemptions and reductions apply is decided locally, so two neighbouring authorities can treat the same pub differently.

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Avoiding the Levy by Varying Your Hours

Because liability follows the licensed hours, a premises whose licence permits alcohol until 1 am but which stops serving at 11.30 pm every night pays the levy for hours it never uses. When an authority adopts a levy, it must offer a free minor variation to reduce hours so that premises can take themselves out of the supply period, and many small venues do exactly that. The decision is a trade-off: giving up the late hours saves the levy but means a temporary event notice for the occasional late night.

What to do next

Compare your licensed hours to your traded hours

If you are paying a levy for hours you never use, a free minor variation removes the charge. Keep a TEN in reserve for the odd late event.

Common mistakes to avoid

Mistake

Assuming you only pay if you trade late

Instead

Liability is based on the hours the licence permits, not the hours you open. A 1 am licence pays the levy even at a pub that closes at 11.

Frequently asked questions

Which councils have a late night levy?

A minority, mostly in cities and large towns, and the list changes as authorities adopt and revoke them. Check your council's licensing pages or ask the licensing team directly.