Newcastle Late Night Levy Moves Closer To Abolition As Councillors Back Reprieve For Hospitality Businesses

Newcastle City Council has taken a significant step towards ending its Late Night Levy, with councillors backing proposals to withdraw the charge imposed on licensed premises trading after midnight.

The move could provide a financial reprieve for pubs, bars, clubs and other late-night venues across the city, although the levy will remain in place until a formal consultation has been completed and the proposal receives final approval from the full council.

Introduced in 2013, Newcastle’s Late Night Levy currently applies to 281 licensed premises permitted to sell alcohol between midnight and 6am. Depending on the premises, the annual charge ranges from £299 to £4,400.

The scheme has generated approximately £3.46 million since its introduction, with revenues used to support measures aimed at improving safety and managing the city’s night-time economy.

These have included additional policing, taxi marshals, CCTV and the Safe Haven vehicle operating around the Bigg Market.

However, the levy has increasingly come under pressure from hospitality and business representatives, who argue that the charge places an unfair additional cost on venues already facing significant financial pressures.

At a meeting of Newcastle City Council’s licensing committee, councillors agreed that the levy should be revoked. Subject to consultation and a decision by the full council, the charge is expected to cease from 31 October.

Reform UK councillor David Orr, who chaired the meeting, described the proposed abolition as an opportunity to provide businesses with a “reprieve”. He also questioned whether the current charging structure was proportionate, particularly for venues that remain open only until around 1am compared with businesses operating significantly later.

Concerns were also raised about how levy income allocated to policing had been used, with councillors questioning whether the money had always been directed specifically towards policing the night-time economy.

Council licensing chief Ed Foster told the committee that cities which had previously withdrawn their levies, including Nottingham, had not reported adverse consequences as a result.

Newcastle City Council leader Colin Ferguson has also backed the proposal, arguing that the levy places an “additional and disproportionate pressure” on late-night businesses.

Newcastle is currently one of only two cities outside London operating a Late Night Levy.

The proposed abolition is not expected to mean an end to funding for measures designed to keep Newcastle’s night-time economy safe.

If the levy is removed, Newcastle City Council and Newcastle Business Improvement District (BID) company NE1 Ltd are expected to explore establishing an alternative funding arrangement to replace money currently generated through the levy.

Stephen Patterson, chief executive of NE1 Ltd, has indicated that removing the charge would not mean a reduction in the city’s commitment to safety.

Under the existing arrangement, levy income has been divided between Northumbria’s Police and Crime Commissioner and the council. Following administration costs, around £2.26 million has been allocated to the PCC and approximately £968,000 to the council.

An independent assessment of the levy also found substantial support among the city’s licensed trade for its removal, with 93% of respondents backing abolition.

The assessment highlighted concerns that the existing system can disproportionately affect businesses which trade for only a short period beyond midnight, as well as premises situated away from the city’s principal night-time economy areas.

The council’s consideration of the levy comes against a changing picture of crime and public safety in Newcastle city centre.

Analysis included in the council’s assessment found reductions since 2022 in a number of areas, including violent and sexual offences, theft, arson and criminal damage, alcohol-related anti-social behaviour and assault-related hospital presentations.

However, other issues have moved in the opposite direction, with reported increases in drug offences, robbery, noise complaints and litter.

Councillor Nick Hartley, leader of Newcastle’s Green group, welcomed the committee’s decision, saying the proposed replacement of the levy could reduce the burden on smaller businesses while maintaining investment in measures designed to improve safety and cleanliness.

The proposals will now be subject to consultation before being considered by the full council.

If approved, Newcastle’s Late Night Levy would end on 31 October, bringing to a close a charging scheme that has been in place for more than a decade.