E-Malt.com News article: United Kingdom: Scottish licensees say new licence fees will run the struggling pub industry into the ground

Scottish licensees have urged Justice Minister Kenny MacAskill to reconsider plans that will see pubs paying thousands of pounds in licence fees, the Publican reported on January, 8.

Venues that want to sell alcohol in Scotland only have until the end of this month to lodge their applications for licences as part of the new Licensing Act that comes into force in September.

And licensees have complained to the Scottish government that initial fees of between £1,000 to £2,000 are going to cause huge problems for pubs.

Patrick Browne, chief executive of the Scottish Beer and Pub Association, said fees paid in Scotland had more than trebled.

“In Scotland £20 mln has already been paid over the licensing period compared to £6 mln during the previous year. Even if there is a review of the system there is no prospect of getting that money back,” he said.

Robbie Howie, licensee of the Meadows Bar in Buccleuch Street, Edinburgh said it was another blow to the industry.

He said: “I don’t understand why they have to change a system that has been running fine for the past 30 years especially when some places are really struggling.”

And Danny MacNeil from the Argyll Bar in Edinburgh, said: “Any hike is bad news in such difficult trading conditions. This government seems hell bent on running this industry into the ground.”

A Scottish government spokesman confirmed there had been a number of complaints about the surge in fees and was considering a review after the Act is in force.

He said: “We are aware of concerns regarding the impact of the licensing fees, in particular on rural businesses. Clearly it is for local licensing boards to set fees for their local area, within the levels set out in regulations. However we’ve asked the Accounts Commission to review the fee system following completion of the transition period on September 1, 2009.”

Colin Wilkinson, secretary of the Scottish Licensing Trade Association, said such complaints were inevitable. “It doesn’t surprise me that there have been complaints because the rise in fees was twice as high as expected,” he said.


09 January, 2009