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Nottingham to scrap late-night levy to ease pressure on businesses

The council said the Levy is placing a difficult burden on existing licensed trade businesses and could be a barrier to incoming or expanding businesses

A levy on late night licensed premises in Nottingham is set to be revoked from 31 October in a bid to ease financial pressure on local businesses.

Nottingham City Council said the economic situation for the hospitality industry has changed since the introduction of the Levy eight years ago, due to the impact of the Covid pandemic and the cost-of-living crisis. 

The council added the Levy is placing a difficult burden on existing licensed trade businesses and could be a barrier to incoming or expanding businesses.

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Nottingham’s Late Night Levy was introduced in 2014, levying a charge on licensed premises across the city operating between midnight and 6am. The funds raised were split between the council and police to tackle late night alcohol-related crime and disorder by providing support to help police and manage the night-time economy.

An exemption agreed for members of the Business Improvement District (BID) reduced the expected income from the Levy to around £67,000 a year – with the BID continuing to fund other late night support schemes, such as street pastors and taxi marshals through its membership subscriptions. 

It is anticipated that the loss of this income will be offset by Nottinghamshire’s Police and Crime Commissioner receiving an extra £13m towards recruiting more Police Officers.

Nottingham City Council said: “It is expected the licensing regime can provide the necessary safeguards against the potential for more premises seeking to open late at night and any associated anti-social behaviour.”

Councillor Neghat Khan, portfolio holder for Neighbourhoods, Safety and Inclusion, added: “A lot has changed since the Late Night Levy was introduced eight years ago, with the hospitality industry really struggling during the pandemic – only to be hit by the cost of living crisis bringing them higher bills and lower incomes from reduced customer numbers.

“It was the right time for us to consider whether the Levy should be revoked, to ease the financial burden on existing businesses and to help encourage businesses looking to expand or invest in Nottingham’s late night economy.”

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