UKHospitality calls late night levy extension 'damaging blow' for the industry

UKHospitality has yet again called on the Home Office to abolish the late night levy after the government adapted the law for local authorities.

The hospitality trade body said the extension of the “costly and unsuccessful levy flies in the face of evidence and common sense”.

Updates to the law will allow local authorities to create levy areas smaller than their boundaries from 13 July, as well as extending the tax to late night refreshment premises, such as cafés or takeaways.

The tax on late-night businesses was introduced in 2014 with the purpose of offsetting the cost of policing the night-time economy.

“It’s really frustrating that the Home Office has proceeded with this extension of late night levy powers, particularly when the evidence base is seven years old and horribly out of date,” said UKHospitality chief executive Kate Nicholls.

“Introducing more powers for local authorities to implement the levy and making more venues eligible to pay is a damaging blow to the late night economy, which already paid hundreds of thousands of pounds in late night levies last year.

“Given the challenging economic circumstances businesses face, the government should be focused on reducing regulation and easing cost burdens. Instead, they have chosen to add more. This will simply stymie investment and limit economic growth.

“I would continue to urge the government to show that it’s on the side of businesses and abolish the late night levy as soon as possible.”

The Campaign for Real Ale (CAMRA) said the changes were a "step in the right direction" as they would allow councils to apply the levy to a smaller area like a city centre rather than penalising a wider area.

However, it said the tax should be abolished and was a "punitive and blunt measure" that applied to businesses "even if they don’t open late into the night or aren’t a source of anti-social behaviour.”