Newcastle has scrapped its Late Night Levy on bars and clubs with immediate effect, despite concerns over the future of safety measures the charge funded. Councillors delivered a final vote on Wednesday evening to revoke the levy, ending months of debate over the controversial scheme.
Levy raised over £3 million since 2013
The levy, an annual fee of up to £4,400 charged to Newcastle venues licensed to sell alcohol between midnight and 6am, has raised more than £3 million since its introduction in 2013. That money funded extra police patrols, taxi marshals, the Safe Haven van on the Bigg Market, and sexual harassment training.
Tyneside’s hospitality trade had lobbied for the levy’s removal to ease businesses’ financial burden amid rising costs. City council leader Colin Ferguson told colleagues the sector wanted “some crumb of comfort from politicians” at a time when it is struggling, and that post-midnight venues had borne a “disproportionate burden”.
Replacement funding guaranteed for one year
While bosses insisted there would be no decline in safety as a result of the levy’s end, Coun Ferguson admitted alternative funding to replace its revenue is only guaranteed for the next 12 months. The Gosforth Lib Dem councillor told a full council meeting that city partners were “committed to maintaining the funding for the next year and to work together to commit to the funding and the provision in the years in the future”.
Business improvement district company NE1 Ltd will establish a new board and administer a replacement fund for nighttime safety measures. A council report states the fund is “expected to be at the same financial level as the last full financial year of the levy and provide funds of £216,000”, though the specific sources of that cash have not been named.
Safety concerns raised
Ged Bell, leader of Newcastle’s Labour group, warned the existing promise “isn’t strong enough” and called for a “guarantee that police resources will not be reduced”. Jamie Anderson, a Green councillor in Byker, told the meeting the levy was “not working fairly”, particularly impacting venues that do not trade long after midnight and are outside the busiest areas. But he said its removal “absolutely cannot mean stepping backwards of safety”, following concerns from safety organisations that abolition could increase the risk of violence towards women and girls.
NE1 chief executive Stephen Patterson called the levy, one of only two remaining outside London, an “outdated anomaly that no longer reflects Newcastle’s late-night economy”. He added: “The abolition of the late-night 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.”
Jack Taylor, chair of Pubwatch and owner of Cosy Joes bar, said: “The conditions under which the levy was introduced differ significantly from the trading environment we currently find ourselves in, and it is right that the licensed trade will no longer pay an additional charge.” Northumbria Police’s chief superintendent Barrie Joisce, area commander for Newcastle, said the police would “remain steadfast in doing all we can to keep everyone safe”. Coun Ferguson added: “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.”
