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Licensing boards given power to set fees |
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Wednesday, 12 December 2007 |
Local licensing boards will be able to set fees for licenses to sell alcohol at levels that allow them to recoup the costs of their work under new reforms introduced by Justice Secretary Kenny MacAskill.
Research shows that boards currently receive only £2.85m in fees but face £4.5m in costs for operating and managing the licensing system. Fees will be capped to stop the system being used as a revenue-raiser.
MacAskill said the reforms to the system were indicative of the new relationship between local and central government.
“The new Licensing Act gave us an opportunity to make sure we've got the right arrangements in place. I've looked very closely at the current system for charging fees and I don't think it's fair that the taxpayer has to subsidise the cost of providing a licensing service. We must ensure local boards have the resources to monitor and implement the legislation - licensing standards officers and licensing clerks need paid and boards must be able to administer and supervise licensees. This all costs money and it's right that these costs should be paid by the alcohol sector - after all those who are given the right to sell alcohol also have a responsibility to meet the costs.
“That's why I've decided to bring in a system that lets local boards set fees in their area. This is the only approach that avoids a situation where some boards fall short of meeting their costs. It will allow boards to make sure their costs are fully met by the fees they charge, and will stop councils, and taxpayers, having to subsidise licensing boards to the tune of around £1.65m. But this is not about giving boards a blank cheque at the expense of licensees - so we have set capped limits which are based on the value of the premises. The use of rateable values to determine the fee levels has received general support. There have been no suggestions of a better, fairer alternative.”
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