Police Reform and Social Responsibility Bill
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Lord Stevenson of Balmacara
My Lords, we seem to be running into a little more difficulty with this group of amendments in terms of what the Bill is trying to achieve, and I look forward to the Minister’s response. Although, you can see where this idea has come from in the sense of the additional costs and other burdens on those with responsibilities in licensing areas, it seems to be a rather overbureaucratic approach. The overlap with the EMRO is not clear to understand—that point has already been made by other noble Lords. The reason why some aspects of this form of imposition are centrally determined and run by the Home Office and some are left to local areas is not at all clear. There is a problem about the scale and extent to which in any authority it would be sufficiently worth while for the licensing authority to introduce a local levy of this type. The case has yet to be made for a late-night levy.
Alongside that runs the argument that businesses already contribute to the community through their business rates. A proportion of revenue from business rates goes to fund local police and fire services—indeed all services—that will be drawn on in the sense that the Bill addresses this point. It seems to us that the late-night levy unfairly penalises responsible retailers by applying a levy to all licence holders and not just those who are trading irresponsibly. Funds raised in out-of-town centre premises will finance additional policing and other measures targeted at the late-night disorder in town centres because that is where it happens. Is it really fair for a village shopkeeper to pay for reducing disorder that they could not possibly have caused?
Businesses that sell alcohol and put on live music contribute to the community through their licence fees. Licence fees for selling alcohol and for regulated entertainment reflect the costs to the licensing authority of administration and enforcement of the licence. The point has been argued before and we think that it is fair. The proposed late-night levy would be a third tax—an additional cost and a stealth tax on the ability to operate at odd times of the day and night. It would affect small music venues that operate past midnight with entirely disproportionate consequences.
I wonder whether the Minister is aware that the CBI said recently that the late-night levy proposal contradicts the Government’s ambition for the creative industries to provide a key pillar of growth in the economic recovery and seems to be undoing some of the Government’s good work in supporting small live music venues.
Baroness Browning
My Lords, it might be appropriate if I begin by reminding the House that the late-night levy was a coalition commitment that we would permit local councils to charge more for late-night licences to pay for additional policing. Unlike other measures that we have discussed so far in relation to this licensing section of the Bill, which specifically give more tools to licensing authorities to deal with the problems that they experience with crime and disorder related to drinking and alcohol, this clause is quite different. I am well aware that the noble Lord, Lord Brooke of Alverthorpe, asked in our debate on an earlier amendment whether there was a change in the Government’s approach to this. If I say yes, it is clearly demonstrated in this particular clause because the clause is not about a measure under which licensing authorities would intervene to address specific problems of alcohol consumption. This is exactly what it says on the packet; it is a tax that is specifically for the repayment to the public services funded by taxpayers for the on-costs that they incur as a result of the late-night economy.
I welcome the opportunity to put on record the principles and thinking behind this levy. First, the levy, as set out in the existing framework, will provide a much needed power for licensing authorities. It will allow them to raise a valuable contribution toward policing costs resulting from the late-night supply of alcohol. To meet this purpose, it must be paid by all who profit from the practice, wherever they are placed. Secondly, the levy will be simple for licensing authorities to adopt; I do not agree that it will be bureaucratic. Thirdly, and finally, the levy will be a fair and proportionate contribution from businesses to enforcement costs. Processes will be transparent and local services will be accountable. In many of our towns and cities, the police experience considerable costs in keeping the late-night environment safe. Alcohol-related crime and disorder are rarely isolated to specific premises. Those on a night out will often visit a variety of premises. Just as businesses share the benefits of customers moving around, they should also share some of the costs generated by the supply of alcohol late at night.
The application of the levy must be as wide as possible. It will be paid by all businesses that profit from supplying alcohol late at night, subject to some exemptions and reductions. On this point, I will consider the lead amendment in the group. A wide variety of premises operate under club premises certificates. Removing all liability would exclude contributions from many businesses that also profit from selling alcohol in the late-night environment. We will consider exemptions and reductions in consultation before writing secondary legislation. I hope to explore the different types of business that operate under a club premises certificate before preparing our consultation. Therefore, we should not put this blanket exemption in the Bill. I say to my noble friend Lord Clement-Jones that I did not mean to be flippant in my earlier remark about club premises. I hope he will take it from me that while club premises benefit from the late-night economy, I accept that there are different types of clubs and I hope that he will take some comfort from the fact that we will consider very carefully in consultation the exemptions and reductions before secondary legislation is introduced.
If we gave a licensing authority the power to target the levy on a specific part of its area, this, too, would mean that fewer businesses would contribute. This would risk the levy raising barely enough to cover administrative costs and failing in its objective of raising a meaningful amount for the police. That is what we intend to do where the levy is applied: raise a meaningful amount of money for the police, who in turn must cover the costs of policing.
I am aware of concern that the levy is not sufficiently targeted. However, we must be clear that it is not designed to target specific pockets of crime and disorder. Clauses and amendments that we debated earlier focused on the need for the licensing authority to have the flexibility to target and focus on the areas that it deems have problems. The levy is not about that; it is about raising money for the police. I am still committed to helping communities tackle areas with specific alcohol-related problems, and I hope that other measures in the Bill will address that. We have already discussed early-morning restriction orders, which are there to address those sorts of problems. This power will enable licensing authorities to restrict the sale of alcohol in specific areas, at specific problem times on specific days. We have addressed the need to enhance the powers of the licensing authority, but that is not the purpose of the amendment.
Many other changes have been proposed in the amendments, and many ideas expressed. Some amendments would remove the burden of licensing authority accountability processes. The processes are necessary; licensing authorities should not worry about incurring costs from introducing the levy. They can deduct their administrative expenses from the levy receipts. As well as the levy funding the additional costs—not total or hypothecated costs, but as a contribution to the overall cost of policing—there is a facility for the local authority to deduct its administrative expenses from levy receipts.
Baroness Hamwee
I shall make two points on the Minister’s comments. First, she said that the standard level of the levy needs to be set nationally to ensure that there is a proportionate contribution from business. Is it not the case that there will be different costs in different areas? That is in the nature of the diversity of the country and of local authorities. Therefore, to set a standard levy may not reflect that diversity.
My second point is about Part 1—that seems so long ago that I wrote down the title of the Bill and then realised that we are still on it. We talked a lot about the need for police forces and local authorities to work in collaboration and co-operation, and I hope we will come back to this on report. In proposing that more resources go to local authorities, perhaps the Government will see that in the context of local authorities working with their police forces to deal with the impact of some of the difficulties arising from the late-night economy.
Baroness Browning
I hope I can reassure my noble friend that this levy has been designed to raise money for the police, who bear the brunt of late-night enforcement costs. As such, we believe they should receive the majority of the levy revenue after administrative expenses have been deducted. The local authority now works with the police and in future will work with the police and crime commissioner, so there will be a very close working relationship between the two to identify whether a licensing authority wishes to apply the levy.
My noble friend mentioned disproportionality in the levy charges. They have yet to be set. We have published only indicative figures. We currently plan to structure the levy charges on the existing licence fee bands, which, as my noble friend will know, are predicated upon the rateable value, so although this will be nationally set, it will be indicative of regional differences in bandings. In that way, we hope to have fairness and proportionality in the way in which the charges are structured.
Lord Clement-Jones
My Lords, I thank the Minister for her response, which I found to be rather a curate’s egg. Of course, I accept that the levy proposal was in essence contained in the coalition agreement. She will notice that no clause stand part debate is proposed from this or any side of the House. I do not think there is a great quarrel around the House with the principle of the levy. Certainly, I did not pick that up during the debate. It is all about the way in which the levy will operate and the interrelationship with EMROs. In particular, it is about the nature of the exemptions and the blanket nature of the levy.
I am pleased to hear that the Minister in the consultation will reflect the different types of clubs and will specifically look for different types of exemption, which is welcome. I would never apply the word “dusty” to this Minister’s replies, but I did think that the Home Office is erecting quite a brick wall to the idea that one can be rather more flexible about the way in which the levy operates. I know that the Minister said that it was not a crime and disorder provision but was all about policing. However, it seems grossly unfair that in a local authority with a mixture of rural and urban, the rural pubs, many of which are struggling, have to pay a levy when they will not see a policeman in a million years. Why on earth should they pay for this?
A huge issue is involved, which seems contradictory. This Government are, I think, the first Government to appoint a Minister with responsibility for community pubs, which was a great thing. He is doing a great job but in a rather different department from the Home Office. However, the policy does not seem to be joined up. Here we have a great deal of work going on in DCLG about planning and the various aspects of the survival of the community pub. We have the Government in a very welcome fashion supporting a Private Member’s Bill that I have put forward about live music, which is designed to preserve the community pub, and certainly the smaller community pub, in many ways. However, here we are with a provision that will directly impact on them if their local authority is a large one that includes a lively, to say the least, city centre. That is a major problem.
Baroness Browning
I have heard what my noble friend says, and I of course understand the situation for rural pubs, having represented 650 square miles of rural Devon for nearly 20 years. I will take away what he has said. I cannot make any promises today, but I hope he will remember that I said that there would be a consultation on exemptions. The point that he has made today will be noted.
Lord Clement-Jones
My Lords, I can be brief on this amendment and Amendment 241Q, which is grouped with it. These new clauses would ensure that there is accountability for the funds raised and distributed to the police and the licensing authority, which are not obliged under the Bill as it stands to apply the moneys to the late night levy area. They are able to use the funds within their general expenses as they see fit. These proposed new clauses will ensure that those who are subject to the levy are informed about the application of the funds, which are to deliver improvements in the area to which they are applied. I beg to move.
Baroness Browning
My Lords, while other amendments have tried to reduce administrative processes, these two amendments attempt to add a publishing requirement on the police and the licensing authorities. I hope that noble Lords will agree that transparency already exists in the late night levy design. I believe that the levy will achieve an appropriate level of transparency and no further reports are required. We will require licensing authorities to consult on proposals and publish the expenses they incur in administering the levy. The police are being reformed to make them more accountable.
Let me deal first with the police. The money given to the police from the late night levy will go into the police fund for the force area and be subject to the relevant scrutiny processes. We believe that it will be a waste of police resources and unnecessary bureaucracy to require the police to provide a report for the levy spend in particular. Further checks and balances will exist under police and crime commissioners. The PCC will be publicly scrutinised by the police and crime panel. Any data used in that scrutiny will be made public unless they are operationally sensitive, and PCCs will also be subject to freedom of information provisions.
With regard to the licensing authority, transparency is provided in the pre-levy consultation process. This consultation will consider, among other things, the services which the licensing authority intends to provide from its levy revenue. The authority will then write to all affected premises to inform them of its final decision. The public will not need yet another publication setting out how the licensing authority spends the levy funds. Further, the Bill will require licensing authorities to publish a statement of the administration expenses which they have deducted from the levy revenue. The licensing authority, as an integral part of the council, is of course accountable to the public.
The late night levy is light on administration and process. It has been designed as a contribution towards policing costs from those who profit from the sale of alcohol in the late night. To require an assessment of the impact of the levy on crime and disorder, as these amendments seek, would confuse the objective of the late night levy with tools such as early morning restriction orders which, as I have already mentioned in response to previous amendments, are specifically designed to tackle particular pockets of alcohol-related crime and disorder. I believe that necessary transparency is adequately provided for to ensure that levy receipts are spent in an appropriate way.
Lord Stevenson of Balmacara
My Lords, I support the previous speech and the amendments that it introduced. On this side of the House, we believe that premises that work with the police and local authorities to minimise crime and disorder should qualify for a reduction in the late night levy. I take the point made by the noble Lord, Lord Clement-Jones, that it would be helpful if this could be put in the Bill, not just because we like to see things in legislation but because it is so important that we recognise what they are doing.
In many cases, for example, these venues are safe havens for young people. If you put young people in a protected environment rather than having them out on the streets you are doing some public good. In a sense, that is something that we want to encourage and we would be grateful if it could be considered in that way. Well run and responsible venues already participate in voluntary schemes to combat anti-social behaviour, and if they are forced to close at midnight to avoid the levy then they will effectively be throwing their young clientele out of a safe venue onto the streets.
Baroness Browning
My Lords, licensing authorities will have the discretion to decide which of the exemption and reduction categories they will apply in their application of the levy. Although I am unable to accept these amendments, I welcome their overall intention. It is precisely these types of premises and the schemes that they run that we want to consider for reductions from the levy charge. However, the amendments would prejudge our public consultation on exemptions and reductions, which we will introduce through regulations.
We have already begun the design of that consultation through a number of working groups, with representatives of the trade, licensing authorities and the police. I would urge noble Lords to await this consultation so that we might have the opportunity fully to consider the views of our partners. There are many schemes, such as the ones mentioned this afternoon, that allow the business community to work together to address some of the negative effects of the sale of alcohol in the night-time economy. I support the principle that drives these local initiatives. However, there is a range of such initiatives and we need to consider the breadth of these schemes and how we might define workable categories for reductions. On that basis, I ask noble Lords not to press their amendments.
Lord Clement-Jones
My Lords, I thank the Minister for that reply, which gives all the right signals in terms of the kind of scheme that would be included. Of course, I was trying to prejudge the consultation to a degree, but I elicited a response from the Minister that is helpful.
Having reached the last amendment dealing with the licensing and levy in Part 2, I must say that an awful lot of weight is now being borne on the consultation. On many occasions replying to groups of amendments today, the Minister has relied on the efficacy and fairness of that consultation to business, particularly, but also to residents and local authorities. I hope that she gets it right because it is of huge significance that the balance and outcome of that consultation are fair. I beg leave to withdraw the amendment.