WIREDGOV

Councils could have paid for eight million hours of home care visits and filled almost three million potholes with money they have been forced to spend settling a £1.5 million monthly bill subsidising the drinks industry.

The Local Government Association (LGA), which represents more than 370 councils in England and Wales, is calling for an end to nationally-set licensing fees as part of its Autumn Statement submission and with funding cuts stretching council services to breaking point.

The Home Office has not made any progress on its commitment to introduce locally-set fees, set out in the 2011's Police Reform and Social Responsibility Act.

It means town halls remain unable to recover the actual costs of applications from pubs, nightclubs and off-licences. These include paying for site visits, public consultation, liaising with police, committee hearings and investigating and taking action on breaches.

It is costing councils almost £1.5 million a month with the current bill at £150 million since the system began in 2005. LGA analysis reveals this money could have:

• Provided 8.9 million hours of home care or 24.8 million Meals on Wheels.
• Filled 2.8 million potholes or paid for one fifth of total council spending on street cleaning.
• Funded the annual running costs of 520 libraries.
• Paid for 8,430 care workers or 11,290 lollipop men and women.

Cllr Mehboob Khan, Chair of the LGA's Safer and Stronger Communities Board, said:

"With council budgets, on average 43 per cent less than they were, councils are having to find £20 billion worth of savings. At a time when councils need every penny for vital services, it is totally unacceptable that councils are being forced to subsidise the drinks industry to the tune of £1.5 million a month.

"With our road network crumbling and social care budgets being stretched to breaking point, this ever-rising bill would already fill millions of potholes and help councils provide more than eight million hours of home care.

"The Government must act now to reform the system so councils are able to recover the actual costs of applications from pubs, nightclubs and off-licences and not divert taxpayers' money in such a needless way.

"As well as meaning more money could be spent on essential services, a flexible licensing system would help councils support responsible venues which enrich local communities and put pressure on those which encourage excessive drinking, noise and high street mess."

Notes to editors 

1. The LGA's Autumn Statement submission can be found below: 
LGA Autumn Statement submission

2. Government commissioned an independent review of licensing fees, chaired by Lord Elton. It found that between the financial years 2004/05 and 2009/10 there was an estimated deficit of around £100 million, equating to just under £17 million a year.

3. The current application fee structure was set in 2005. Fees generally range from £21 to £37 for a personal licence and £100 to £635 for a premises licence.

Contact

Greg Burns, Senior Media Relations Officer
Local Government Association
Telephone: 020 7664 3184
Email: greg.burns@local.gov.uk
Media Office (for out-of-hours contact): 020 7664 3333
Local Government House, Smith Square, London SW1P 3HZ 

www.local.gov.uk

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