Cheltenham Late Night Levy
2015
As previously reported, Cheltenham Borough Council (Cheltenham) introduced their own Late Night Levy (LNL) on 1st April 2014.
In response to a Freedom of Information request following the Levy's first anniversary, Cheltenham's answers reveal a substantial reduction in the number of premises trading in the late night levy period (00:01 to 06:00) resulting in a much smaller recovery from the Levy.
In December 2013 the Council's Officers produced a document regarding the proposed adoption of a LNL. At that time Officers reported 208 premises would potentially subject to the levy leading to an estimated gross revenue of £199,152.
Following the announcement of the LNL premises affected were permitted to seek a variation of their licence in order to avoid the LNL, achieved by reducing the terminal hour for the sale of alcohol to midnight.
Between the announcement of the LNL and its implementation 61 premises (29.3%) made such applications.
On the 1st April 2015 the number of premises subject to the LNL had fallen further:
| Fee Band | Levy | # of premises 09/12/13 | # of premises 01/04/2015 | Reduction |
| A | £299 | 11 | 3 | -8 |
| B | £768 | 120 | 50 | -70 |
| C | £1259 | 41 | 23 | -18 |
| D | £1365 | 13 | 4 | -9 |
| E | £1493 | 23 | 15 | -8 |
| 208 | 95 | -113 (54.3%) |
On the date the LNL took effect Cheltenham had reduced the forecast revenue for full collection (disregarding any applicable discounts applicable) to £90,000 (45% of the December 2013 estimate).
58 premises qualified for the full 30% reduction on levy in the first year with a value of £22,458.90. Adjusting the projected income to reflect these discounts a projected income of £67,541.10.
Cheltenham went on in the first year to collect £76,889. Cheltenham's administration costs for the first year were £6,268.51, however, the Council subsidised these costs deducting only £1,017.51 from the sum collected.
Following the first year, £75, 871.49 was available for a spending programme agreed between Cheltenham and Gloucestershire Police.
The lost tax revenue from premises closing or reducing hours is currently unquantified.
The magnitude of over estimation for initial revenue that would be raised and the substantial reduction of premises trading in the late night period are eye catching.