Department for Culture Media and Sport
3. question and answer
- Who sets the fees?
- Why have fees been set centrally?
- What is the fee for?
- How are premises allocated to fee bands?
- Which NDRV will apply when I convert my existing licences and certificates, given that rates will change in April 2005?
- Are there any exemptions to the payment of the fees?
- When do the "additional" premises licence fee, and annual fee apply?
- What premises pay the multiplier charge?
- Will clubs have to pay the additional fee for making variations relating to alcohol during transition?
- These figures are more than I pay for my current licence - why is this?
- Will it cost more for a premises licence to be authorised for the provision of regulated entertainment or late night refreshment?
- What about the fees for giving temporary event notices?
- What about fees for variations and other notices etc?
- When will I have to pay the annual fee?
- What will happen if I don't pay my annual fee?
- Can I pay in instalments?
- Why were premises licence fees increased following public consultation?
- Will the fees stay the same forever?
Who sets the fees?
The fees were set centrally by the Secretary of State for Culture, Media and Sport, following public consultation.
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Why have fees been set centrally?
The central setting of fees removes the considerable and widespread regional inconsistencies that previously existed with fee levels in relation to the provision of regulated entertainment and late night refreshment. For example, the cost of a public entertainment licence under the old system varied by as much as 600% between neighbouring authorities.
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What is the fee for?
The fee is to fully recover the administration, inspection and enforcement costs of licensing authorities, which arise out of carrying out their licensing functions under the Act. This is to avoid any need for council tax payers to subsidise these costs.
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How are premises allocated to fee bands?
The Government has used the non-domestic rateable value (NDRV) as the means of allocating premises to fee bands. NDRV is considered the fairest method of allocating fee bands because it:
- Appears fair in ensuring that larger premises pay more than smaller businesses
- Is an indicator of business size and turnover
- Takes into account the location of the business
- Reflects higher overheads falling on local authorities in certain areas
- Is reviewed regularly
Particular types of premises which do not have non-domestic rateable values are allocated to Band A.
New NDRVs for all premises come into force on 1 April 2005. You can check your current and new non-domestic rateable value at the Valuation Office Agency website.
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Are there any exemptions to the payment of the fees?
There is an exemption from the payment of fees in relation to the provision of regulated entertainment at church halls, chapel halls or premises of a similar nature, village halls, parish or community halls, or other premises of a similar nature. The costs associated with these licences will be met by central Government. If, however, the licence also authorises the use of the premises for the supply of alcohol or the provision of late night refreshment, a fee will be required for those activities.
Schools and sixth form colleges are also exempt from the fees associated with the authorisation of regulated entertainment where the entertainment is provided by and at the school or college and for the purposes of the school or college.
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When do the "additional" premises licence fee, and annual fee apply?
The Government believes that fee levels need to take account of exceptionally large events where over 5,000 people attend at any time, and which give rise to exceptional considerations and licensing authority costs. Such events might include major festivals and other events, which often involve the building of substantial temporary structures. In such circumstances, it may be appropriate for an extra fee to be charged, in addition to the standard application and variation fee.
Venues that are permanent or purpose built or structurally altered for the activity are exempt from the additional fee. Other premises may be able to obtain a permanent premises licence and would then pay an additional annual fee. However, this may depend on the practicalities of drawing up plans that are not subject to variation each year, and an operating schedule that satisfies responsible authorities and interested parties. Otherwise, they may have to apply for a new licence each year.
Regulations prescribe that the additional fee for large scale events would not be payable where the premises is a structure which is not a vehicle, vessel or moveable structure, and has been constructed or structurally altered to allow:
- The proposed licensable activities to take place
- The premises to be modified temporarily, from time to time, if relevant for the proposed licensable activities
- The proposed number of people on the premises at any one time
- The premises to be used in a manner which complies with the operating schedule
The full details of where the additional fee is applicable can be found in Regulation 4(5) of the The Licensing Act 2003 (Fees) Regulations 2005. If an applicant is unsure about whether the additional fee will apply, they should seek legal advice or consult with their local licensing officer.
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What premises pay the multiplier charge?
The multiplier charge is applied to premises in bands D and E, used exclusively or primarily for the supply of alcohol for consumption on the premises, when applying for the grant or variation of a premises licence. The multiplier charge does not apply to club premises certificates.
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These figures are more than I paid for my licence under the old regime – why is this?
The Government believes that licensing fees must be set at a level to recover fully the licensing authorities' costs of administration, inspection and enforcement.
Unless an applicant requests otherwise, a premises licence will be valid until it is surrendered or forfeited, it lapses or it is revoked, so there will not be the annual application for the grant of an authorisation for regulated entertainment, which was previously the case with public entertainment licences, or the three yearly renewal which was previously the case with justice's licences. Overall, we estimate that industry will save almost £2 billion over the first ten years as a result of the reforms contained in the Act, largely through savings in legal costs and the applications for the many additional permissions, renewals etc which were required under the previous law.
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Does it cost more for a premises licence to be authorised for the provision of regulated entertainment or late night refreshment as well as the sale or supply of alcohol?
No. The fee for a premises licence or club premises certificate is the same regardless of whether you apply at the same time for it to authorise one, two or all of the licensable activities.
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What about the fees for giving temporary event notices?
Temporary event notices (TENs) replace the previous system of occasional permissions and licences, with TENs costing £21 per event. More details on a TEN can be obtained in the permitted temporary activities section of this website.
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What about fees for variations and other notices etc.?
Fees for variations (excluding changes of name and address etc or changes of designated premises supervisor) will be between £100 and £635, depending on the rateable value band.
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When will I have to pay the annual fee?
The annual fee for premises licences and club premises certificates will become due and payable each year on the anniversary of the date of the grant of the licence or certificate.
If you are unsure about when your annual fee is due, you should contact your licensing authority to check.
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What will happen if I don't pay my annual fee?
If you do not pay your annual fee, the fee will be recoverable as a debt by the licensing authority.
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Can I pay in instalments?
No. The fee will be payable in full at the time of application and when the annual fee is due.
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Why were premises licence fees increased following public consultation?
One of the key findings from the consultation was that the overall level of premises fees – the main generator of income for licensing authorities – was insufficient to recover the administration, inspection and enforcement costs of the new regime. This resulted in a general uplift in the level of premises fees.
We were also persuaded that larger premises that mainly serve alcohol require greater levels of inspection and enforcement and were more likely to generate representations and therefore costs to licensing authorities. This is why we decided to apply a multiplier to premises in bands D and E used exclusively or primarily for the supply of alcohol for consumption on those premises.
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Will the fees stay the same forever?
Not necessarily. The Secretary of State can alter fee levels at any time by means of amending regulations. Fee levels will be monitored to ensure that they are enabling licensing authorities to recover fully their costs, without placing an unreasonable burden on licensees. An Independent Fees Review Panel has been set up for this purpose. If it proves necessary to raise the fees in the future, they would be increased. Similarly, the fees could be reduced if experience showed that they had been set too high.
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