Agenda item

A report from the Executive Director (Operations) is attached.

The Executive Director (Operations) submitted a report relating to the review of a decision taken by the Council in respect of annual fees under the Licensing Act 2003 during the Covid 19 Pandemic. 

It was reported that the Licensing and Safety Panel had received a report at its meeting on 26 November 2020 where it had been agreed to defer a decision of the Emergency Powers Group in relation to Annual Fees under the Licensing Act 2003 during the Covid-19 Pandemic to this meeting of the Panel in order that a further detailed report be submitted.

On the 14 July 2020, the Emergency Powers Group was consulted about an urgent decision that was required in relation to the suspension of annual fees payable under the Licensing Act 2003 in respect of Premises Licences and Club Premises Certificates.

The Greater Manchester Combined Authority had agreed a consistent approach which has been referred to the Wider Leadership Team as part of a number of measures to assist licensed premises as part of the lockdown easing as businesses reopen.

Members of the Emergency Powers Group (EPG) agreed to the proposed decision not to suspend any Licensing Act 2003 premises licences for non-payment of the annual fee until 1 December 2020. In addition it was noted that a review of this urgent decision would be referred to the Council’s Licensing and Safety Panel for consideration in November 2020.

The second lockdown was implemented by Government on 5 November 2020 and ended on the 2 December 2020. 

On the 26 November 2020, a report was considered by the Licensing and Safety Panel to review the urgent decision taken on the 14th July 2020. Members resolved that the implementation of the decision, i.e. to commence the recovery of the annual fees that are payable under the Licensing Act 2003, be deferred so that a further detailed report could be prepared for consideration at the next meeting of the Licensing & Safety Panel in January 2021.

Since the meeting of the Licensing and Safety Panel on the 26 November 2020, the Government placed Greater Manchester in Tier 3 on the 2 December 2020.

The Licensing Service would like to inform members, no further guidance on a consistent approach has been issued by the Greater Manchester Combined Authority or the Wider Leadership Team on this matter.

The Licensing Service have liaised with the Council’s finance department and the annual fees are set up as a subscription. The invoices are then sent when required via this automated system to the licence holders of premises licences and club premises certificates, to advise them that the annual fee is payable. During the pandemic this invoices have still been being issued, but the Licensing Service have not been suspending premises licences or club premise certificates when payment has not been made. This is as a result of the direction of the Wider Leadership Team, the Combined Authority and the urgent decision in July 2020.

In light of the decision of the Licensing and Safety Panel on the 26 November 2020, the licensing service have requested details of the payment information for the period 1 April 2020 until the 1 December 2020:

The total value of the fees payable from 1 April to 1 December 2020 was £101,855. Approximately two thirds of licensing invoices issued have been paid by businesses (£70,185) and a total of £31,670 remains outstanding. 

Other businesses will be due to receive invoices between 1 December 2020 and 31 March 2021 which will have a value of £17,200. Based on the experience of the first three quarters payments (two thirds paid) then £11,352 is likely to be paid, which would leave £5,848 unpaid. 

This totals a potential of £37,518 that would be outstanding for payment (based on outstanding fees to date and the projection for the rest of the year). 

It should be noted that the outstanding payments include a variety of business types including Off Licences, pubs, restaurants, takeaways.

The Licensing Act 2003 requires the Council to suspend a premises licence or club premises certificate if the annual fee is not paid when it is due.

The outstanding income outlined in the report will represent a budget deficit if not recovered in this financial year.

It was also explained that the annual fees for next year will still be payable on the anniversary of the issue of licences and certificates and this may require venues to pay two annual fees in a short period.

The Council has a debt management process in place that would be followed in recovering the outstanding payments. This process allows companies to contact the finance team if they are struggling to pay and discuss payment options. Finance staff will be briefed to check that anyone struggling has accessed all the support they are entitled to.

Delegated decisions:

1.     That the Licensing Service will take steps to suspend any licence for non-payment of the annual licence fee.

2.     It is noted that any unpaid annual licence fee will be recovered using the Council’s debt recovery process.