Newcastle City Council Axes Late Night Levy Amid Mounting Cost Pressures

Newcastle City Council has agreed to end the charges, which saw hospitality businesses that are open after midnight collectively pay more than £215,000 a year towards services that support the night time economy.

Cllr Colin Ferguson, leader of Newcastle City Council, said: “The Late Night Levy was a measure introduced when the character of the city’s nightlife was different to what it is today.

“Now, at a time when our pubs, bars and clubs are under so much pressure, it is no longer fit for purpose, and places an unfair burden on a small number of licensed venues in the city.

“I am therefore pleased that, in line with the wishes of the trade and public expressed during extensive consultations, we can revoke the Late Night Levy and give those who were paying some breathing room.

“However, our commitment to safety in the night-time economy remains as firm as ever. The positive work that the Levy supported will continue, and we believe that working with NE1, Northumbria Police and the Police and Crime Commissioner, we can deliver ongoing, focused, and ultimately improved measures to support the safety of everyone, particularly women and girls.

“We’re committed to supporting the incredible hospitality offer Newcastle is famed for, and we will continue to lobby Government for new measures to solve pressures facing the sector and ensure our city can thrive.”

Newcastle’s Late Night Levy was introduced in 2013 as a way of hospitality businesses contributing to the cost of policing and a range of support services, including street cleaning, CCTV, street and taxi marshals, the Safe Haven van in the Bigg Market and training for venue staff to help them spot and help vulnerable people.

In the 13 years since then it has seen businesses – who were each charged between £299 and £4,400 a year – pay almost a total of almost £3.5 million.

However in that time circumstances have significantly changed, with increased government taxation placing extra financial burdens on licensees, and both the Covid-19 pandemic and cost-of-living crisis changing customer behaviours.

Stephen Patterson, chief executive of business improvement district NE1, said: “We are delighted that Newcastle City Council has repealed the Late Night Levy, and we commend them for their willingness to discuss and understand its impacts on the city’s hospitality sector.

“Hospitality businesses are some of the most heavily regulated and highest taxed in the city. They are currently facing significant and well-documented challenges, with the Levy seen as an outdated anomaly that no longer reflects Newcastle’s late-night economy.

“We listened to licensees’ concerns and worked with partners quickly to ensure that they were properly heard and that the challenges they faced were fully understood.

“The abolition of the Levy is great news for Newcastle’s hospitality businesses and provides some financial relief for the sector, which still faces challenging times.
“More importantly, it provides a solid foundation to build on this work, with the council, police, licensees, and NE1 all pulling together to create the best possible environment for the sector to thrive.

“Newcastle has an eclectic, diverse and creative licensed trade sector, and that exceptional hospitality offer is central to Newcastle’s global reputation.

“We will ensure that licensees continue to have a voice and are placed at the heart of decisions made about their sector.”

Following the agreement of full council on Wednesday 7 October 2026 no new levy bills will be issued and the scheme will end on October 31 (though businesses with outstanding bills for the previous year will still be expected to pay them).

NE1 will establish a new governance board and administer a fund – backed by itself and the city council – specifically for activities relating to safety in the night-time economy.

That fund is expected to be at the same level as the last full financial year of the levy and provide £216,000, with £151,000 going to the Police and Crime Commissioner for policing work and £65,000 to Newcastle City Council.

This new arrangement will also give opportunity for the board to consider applications from voluntary organisations working to promote safety in the late-night economy, especially those that deal with violence against women and girls.

Northumbria Police’s chief superintendent Barrie Joisce, area commander for Newcastle, said: “Newcastle is renowned worldwide for its fantastic nightlife and we are committed to keeping it that way through effective policing of the night-time economy.

“The public should rest assured that alongside our partners and licensees we remain steadfast in doing all we can to keep everyone safe.

“We will also carry on our regular proactive officer patrols, both uniformed and plain-clothed, to prevent crime and disorder and keep people, including the vulnerable, safe in the process.

“Together, we are doing our utmost to ensure Newcastle continues to be the thriving and welcoming city centre it is for all to visit and enjoy.”