Review of Alcohol Licensing Fees - Steering Group: Recommendations to Scottish Ministers

Background

4. The alcohol licensing regime is administered at local authority level by Licensing Boards. These Boards carry out a range of functions including granting and reviewing licences, writing policy statements, and considering if there is overprovision of licensed premises in a particular area.

5. The Licensing (Scotland) Act 2005 s136 enables Scottish Ministers to make provision for the charging of alcohol licensing fees by Licensing Boards in a range of situations, such as applying for premises licences, personal licences and occasional licences; annual fees and transfers or variations of licences.

6. Some of these fees are fixed, however for others such as premises applications or annual fees, Licensing Boards are empowered to set their own fee levels as long as they do not exceed the maximum limits outlined in the Licensing (Fees) (Scotland) Regulations 2007. The fees are intended to reflect the Scottish Government's intention to make the system self-funding, i.e., to cover both direct and indirect costs incurred by Licensing Boards (over time, not at the level of individual applications). As stated in the Licensing (Fees) (Scotland) Regulations 2007 s13,

"a Board is to have regard to the desirability of ensuring that the total fees payable under these Regulations to that Board in respect of any period are likely to be broadly equivalent to the expenses incurred by the Board and the council for the area of that Board, in administering the Act generally during that period."

7. Although the fees are set by Licensing Boards, as stated in the above quote, the fees should also include Local Authority costs such as Licensing Standards Officers (LSOs), and other indirect costs such as use of local authority staff/buildings etc. Some Boards do not currently keep a record of these costs, and it can be a complicated process to calculate these retrospectively.

8. Most of these fees, such as those charged for occasional licences or extended hours, are the same for all applicants regardless of the size of their business, however premises applications and annual fees are linked to the business's rateable value (with a number of exceptions such as members clubsMembers' Clubs, visitor attractions, etc.).

9. The fee payable for a premises licence application is to be determined by the relevant Board but is not to exceed-

(a) £200 in the case of premises within category 1
(b) £800 in the case of premises within category 2
(c) £1,100 in the case of premises within category 3
(d) £1,300 in the case of premises within category 4
(e) £1,700 in the case of premises within category 5
(f) £2,000 in the case of premises within category 6

10. In addition to the initial payment for premises licence applications, licence holders must pay an annual fee. Licensing Boards are empowered to set their own annual fees for premises licences as long as they do not exceed the maximum limits outlined in the Licensing (Fees) (Scotland) Regulations 2007.

11. The annual fee payable is to be determined by the relevant Board but is not to exceed-

(a) £180 in the case of premises within category 1
(b) £220 in the case of premises within category 2
(c) £280 in the case of premises within category 3
(d) £500 in the case of premises within category 4
(e) £700 in the case of premises within category 5
(f) £900 in the case of premises within category 6