City centre hospitality venues could be set to receive a boost after council leaders said they wish to see the end of Newcastle’s Late-Night Levy.
The new Liberal Democrat administration at Newcastle City Council has called for the Council to look at ending the annual charge imposed on venues selling alcohol between midnight and 6am.
It has been in place since 2013 with the levy managed by Newcastle City Council and the Northumbria Police and Crime Commissioner.
Venues pay between £299 and £4,400 a year depending on their size, with funds used to support public safety initiatives and extra police patrols.
However, Newcastle and Liverpool remain the only cities outside of London to charge a levy, at a time where nationally the hospitality sector is under huge financial pressure.
A review into the city’s Late-Night Levy has been taking place in recent months and now a report is set to go before the council’s Licensing Committee.
It will be for the committee to make their judgement, before a report to all elected councillors at a meeting of full council.
But today the council’s Leader, Cllr Colin Ferguson, has said he wants to see the levy to be revoked, but with a commitment to maintain many of the initiatives it supports, within a new funding framework.
He said: “I have said publicly that I was sceptical of the levy given the additional and disproportionate pressure that it put on some of our city’s hospitality venues.
“It was only right that we allowed the consultation to end but now I think it is clear the correct decision would be for Newcastle’s Late-Night Levy to be revoked.
“Ultimately, this Cabinet does not think it is fair that Newcastle is one of just two cities outside of London that expects hospitality venues to contribute towards policing and public safety initiatives.
“We want to see the positive work in the city centre continuing, and we believe working with the Police and Crime Commissioner, Chief Constable and NE1 to ensure shared management and funding will support the safety of everyone, particularly women and girls.
“However, we need to ensure we do this without putting undue pressure on venues in our city and make sure we are doing everything we can to protect the incredible hospitality offer Newcastle is famed for.
“We also recognise simply ending the levy doesn’t solve pressures facing the sector, so we will also continue to lobby Government for new measures to ensure our city can thrive.”
Newcastle’s Late Night Levy has generated £3.46 million since its introduction in 2013. After administration costs, £2.26 million was allocated to the Police and Crime Commissioner and £968,432 to the council.
The income has supported policing and a range of council and partnership activities, including street cleansing, CCTV, Street Marshals, Taxi Marshals, Safe Haven and additional police patrols.
A city council report summarises how circumstances are “significantly different” since the levy was set up, including the changing nature of the nighttime economy, government taxation which has placed additional financial burdens on licensees and the cost-of-living crisis.
The City Council said that if the levy was revoked, an alternative Governance structure would be put in place to manage a fund with contributions from the city council and the Newcastle Business Improvement District (BID) NE1.
The decision will need to be approved by the Licensing Committee on Monday, August 24, before also needing to be approved at the full meeting of council on October 7.