Newcastle City Council has moved a significant step closer to abolishing the Late Night Levy, a charge on pubs, bars, and clubs that has raised more than £3 million since 2013. The Lib Dem-led council's licensing committee agreed at a meeting on Monday afternoon that the levy should be revoked.
The levy is an annual fee of between £299 and £4,400, currently charged to 281 Newcastle businesses with a licence to sell alcohol between midnight and 6am. It has funded city centre safety measures including extra police patrols, taxi marshals, CCTV, and the Safe Haven van on Bigg Market.
Industry Pressure and Council Support
Industry leaders have called for the levy to be dropped because of the financial pressures facing the hospitality sector. Reform UK councillor David Orr, who chaired Monday's meeting, said it was an "opportunity to give businesses a reprieve." He raised concerns about the disproportionate impact on venues that open until 1am compared to clubs that open much later.
Coun Orr also highlighted complaints over a lack of transparency over how the levy is spent, saying the portion allocated to the police "just went into a pot and wasn't necessarily spent on night-time economy policing." Civic Centre licensing boss Ed Foster told the committee that other cities that had cancelled the levy, like Nottingham, had reported no negative feedback.
Expected End Date and Next Steps
It is expected that the levy will end as of October 31, though its removal must first be subject to a consultation exercise and a final decision made by a meeting of the full council in October. Ahead of the meeting, city council leader Colin Ferguson made clear that he wanted to see the levy axed, saying it placed an "additional and disproportionate pressure" on late night venues in Newcastle, one of only two cities outside London to apply the charge.
Stephen Patterson, chief executive of Newcastle Business Improvement District (BID) company NE1 Ltd, has pledged that its removal will not result in a decline in safety. If dropped, it is expected that the council and NE1 would set up a new fund to match the finances being lost and dedicated to the kind of safety measures the levy has funded.
Safety Funding and Trade Support
Byker councillor Nick Hartley, leader of the city's Green group, said after Monday's meeting: "I want us to do everything we can to back Newcastle's small and independent businesses while making our city safer, cleaner and more welcoming."
The Late Night Levy isn't working fairly, and replacing it removes an unnecessary extra burden from small business while protecting the funding that keeps people safe at night and helps keep our city clean. Greens will keep pushing for the bigger changes hospitality needs too, including fairer business rates and investment in our streets and neighbourhoods."
According to a report, analysis of crime trends in the city centre since 2022 shows a decline in violent and sexual offences, theft, arson and criminal damage, alcohol-related anti-social behaviour and assault-related A&E presentations. However, drug offences, robbery, noise complaints and litter reports have increased.
The levy has generated £3.46 million since its introduction in 2013. After administration costs, £2.26 million was allocated to the Northumbria Police and Crime Commissioner (PCC) and £968,432 to the council. An evaluation found that 93% of Newcastle's licensed trade support its abolition, highlighting concerns over the disproportionate impact on premises trading only briefly after midnight or located outside major hotspots.
