West Oxfordshire District Council announced it would abolish the charge for pavement seating and displaying material on the public highway.
It previously cost £100 to apply for a pavement licence.
Pavement licences will still be required for businesses to operate outdoors, and owners will be required to fill out an application, however no payment will be required to apply for a licence.
The council has 17 active pavement licences, which normally cost businesses £100 per year. All licences issued in 2022 will be refunded and no further fees will be due for applying for pavement licences in the future.
Councillor Duncan Enright, cabinet member for economic development and deputy leader of the council, said: “During the pandemic, legislation was created to allow more businesses to trade outside, which has proved to be popular with businesses across the district.
“Outdoor drinking and dining areas have become hugely popular and we want to allow businesses the opportunity to grow by welcoming more businesses to expand their business without unnecessary fees.”
“We hope that by abolishing the payment it will encourage more on-street facilities, making our towns attractive and thriving places to eat and socialise.”
The council added that payments for all licences issued in 2022 would be refunded.
