Tower Hamlets backs late night levy after second consultation

The London Borough of Tower Hamlets has backed the introduction of a late night levy after holding a second consultation on its proposals.

The levy will apply to all businesses that sell alcohol between midnight and 6 am. Businesses will pay between £5.75 and £85.38 per week, depending on their size and rateable value of the premises.

The council said it planned to offer exemptions to some businesses such as: hotels; theatres and cinemas; community premises including sports clubs; and premises open after midnight on New Year’s Eve only.

The levy will be collected by the council’s Environmental Health and Trading Standards team at the same time as they collect the annual fee from all licenced premises.

In May the council halted plans to introduce a levy from the beginning of June, following a judicial review challenge by the Association of Licensed Multiple Retailers (ALMR).

After the ALMR claimed that there were flaws in the consultation, Tower Hamlets launched a fresh consultation.

The Mayor of Tower Hamlets, John Biggs, said: "The borough has a vibrant night time economy which we want to support. The late night levy is a way to ensure a financial contribution from businesses that sell alcohol between midnight and 6 am is ring fenced for this purpose.

"This will ensure as a council we can then tackle anti-social behaviour through the work of our anti-social behaviour officers and police to reduce alcohol-related crime."

Cllr Asma Begum, cabinet member for community safety, said: "The night time economy is a vital part of Tower Hamlets but premises serving late into the night can also incur extra costs for our borough, such as anti-social behaviour. By introducing a late night levy we can ask these businesses to pay a fair share of the costs."

The move was criticised by the British Beer & Pub Association. Chief executive Brigid Simmonds said: “This is very disappointing, and will damage the economy of a vibrant, inner London borough with a beer and pub sector that employs over 2,800 people – a point we had made very clear to the council on two occasions.

“Other authorities have turned away from a levy, and a recent House of Lords report has concluded that the late night levy has ‘failed to reach its objectives and should be abolished’.

“When it comes to addressing any issues in the night-time economy, there are far better solutions than this punishing new tax on local business, such as business improvement districts.”