A plan to axe late-night fees so bars and clubs in Nottingham can stay open past midnight may end up "doing more harm than good". Venue owners say most are already exempt from the charges anyway and slashing the income generated through the fees may ultimately lead to a decrease in investment in the city's nightlife.
Nottingham City Council is proposing a review of its 'Late Night Levy', which venues must pay to remain open and trade in the city after midnight, because it "was deemed appropriate given the significant financial pressures faced by businesses" amid the coronavirus pandemic. The fees were introduced back in 2014.
The charges differ depending on the size of a venue, with Band A venues being charged £299 a year, while Band E venues are charged £1,495. There are an additional two venues in 'Band E plus', the largest of venues, which are charged £4,440.
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Many venues - 109 - are however exempt and instead pay into the Nottingham Business Improvement District (BID). Owners of bars and clubs have therefore questioned whether the plans to scrap the fees would be of any benefit, and could hurt investment as no money is brought in from the venues who do pay.
Jamie Barnes, operations manager at Fletchergate Industries which owns venues including Blind Rabbit, Das Kino and Penny Lane, said: “On the surface, the removal of the Late Night Levy seems like a great way to put money back in businesses’ pockets and help the city’s nightlife to recover, protecting the Nottingham hospitality industry. However, in reality, many bars are exempt from the Levy as members of the Nottingham BID.
"Without the incentive of avoiding the levy, businesses might choose not to join the BID, reducing its overall impact. The BID does some great work in the city and takes steps to improve Nottingham for everyone, including a valuable lighting project that illuminated walkways in the city and continues to make Nottingham a safer night out.
"While we’re always in favour of boosting the hospitality industry, reducing the Late Night Levy might end up doing more harm than good and other ways of increasing investment into Nottingham’s nightlife could be more beneficial.”
And Andy Hoe, the owner of the Ocean nightclub in Greyfriar Gate, added: "We don't pay it, we pay into the BID pot instead, so it makes no difference to most city centre venues."
There are 144 premises in the city which are liable for the charges and for the period from November 1, 2020, to October 31, 2021, the level of income received from the levy was £133,851, according to the council. The fees in this period were however paid for by the council using a Government grant, because of the pandemic.
Responding to the concerns the city council’s chief environmental health officer, Paul Dales, said: “The Late Night Levy review has to follow a formal statutory process so we can’t comment on individual viewpoints, however it is really reassuring that businesses are interested in providing their perspective. I would encourage such views to be channelled through the consultation when it begins, so that a variety of opinions can be carefully considered as part of the decision making process.”
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