Alcohol licensing: the late night levy

Licensing authorities have the power to introduce a “late night levy” on premises licensed to sell alcohol in the authority’s area. The levy applies during a “late night supply period” (ie between midnight and 6am). The authority chooses the length of time within this period that the levy will apply.

The net revenue raised goes towards the costs of policing the late-night economy. This must be split between the licensing authority and the relevant police and crime commissioner (PCC). At least 70% of the net revenue must be given to the police. The licensing authority can retain up to 30% to fund the services it provides to manage the night-time economy.

The levy only applies in England and Wales.

Changes to the levy (July 2023)

Section 142 and Schedule 18 of the Policing and Crime Act 2017 reformed the levy by:

• allowing licensing authorities to target specific geographical locations.
• extending the levy to include late night refreshment outlets.
• enabling PCCs to request the licensing authority to propose introducing a levy.
• requiring licensing authorities to publish information about how funds raised by the levy are spent.

The changes came into force from 13 July 2023. The Government has said they “will make the levy more flexible for local areas, fairer to business and more transparent.

The Home Office has published amended guidance on the levy (July 2023).