Late Night Levy - update

There are currently 7 Late Night Levy (LNL) Schemes operating in England, although Welsh Authorities also have this power, they are yet to join in. Most schemes (4 of 7) were introduced on the 1st November 2014; Newcastle were the leaders introducing their scheme a year earlier than anyone else on the 1st November 2013.

We are aware that many operators have taken advantage of right to make an minor variation applications without fee, to avoid the LNL schemes. JD Wetherspoons implemented an innovative approach seeking to condition their affected licences in such a way as to avoid the LNL while retaining the right to reinstate the later licence hours should the LNL scheme be scrapped. In Nottingham and Newcastle they faces opposition to these proposals but were ultimately successful.

We have conducted our own research using Freedom of Information requests to find out what were the actual number applications which were made to avoid the LNL.

Here are our findings:

Which venues have been most affected? Precise details are not available; however more than one Licensing Authority, when addressing our request, commented that many of the premises choosing to limit their licence were premises that did not ordinarily trade beyond midnight in any event, the permitted hours either being historic or rarely called upon. It would appear that the city centre bar and nightclub have generally chosen to bear the additional costs and trade on.

Has the reductions in the number of premises had a positive effect on crime and disorder? Although we have sought data from the relevant police forces, the available crime figures provide only a rough estimation to any impact. In general, crime figures appear to be unaffected with alcohol related crime continuing to drop at average yearly rates, flat line or, in the case of Newcastle, increase. Alcohol related crimes in the Newcastle LNL Area increased during the first year of the LNL, a trend mirrored in the wider Northumbria Police region.

Does this mean that the LNL schemes are failing? It would be premature to write off the LNL schemes and label them as failures; indeed it may be entirely wrong to measure the LNL against this aim altogether. When looking at government literature announcing LNL schemes a crime reduction objective was not the stated goal, simply that business pay more for the policing that already takes place:

What is the policy's aim? The levy will empower local areas to charge businesses that supply alcohol late into the night for the extra enforcement costs that the night-time economy generates for police and licensing authorities. - Home Office - Police Reform and Social Responsibility Act 2011 - Late Night Levy

By this measure the LNL may be deemed a success; following the many reductions of licences only those premises operating in the LNL period contribute additional funding, we are yet to establish the full extent of how this money is spent and what effect this is having. Our initial findings would suggest the LNL schemes have been effective in raising additional revenue but their impact on crime and disorder is yet to be established.

We will continue to update.