Police Reform and Social Responsibility Bill

Debate between Baroness Hamwee and Lord Stevenson of Balmacara

Thursday 14th July 2011 Lords Chamber

[Lord Stevenson of Balmacara]

My Lords, we discussed this matter in Committee and we want to probe further whether the Government have moved in their thinking. We welcome the Government’s move through Clause 123 to allow licensing authorities the ability to set fees locally on the basis of full cost recovery. Operating the licence system since 2005 has cost council tax payers over £100 million more than they anticipated due to the current, centrally set fee structure, which does not allow licensing authorities to set cost-neutral local charges. Given the economic climate, there is a real imperative to allow cost-neutral fees to be set as soon as possible. However, as we discussed last time, there is a drafting error within Clause 123, which would mean two-tier authorities not being able fully to recover all the costs associated with licensing. This was debated in Committee. When the Minister replied, he acknowledged that, as drafted, the Bill would exclude the relevant costs of trading standards and social services departments and that, even though they were discharging duties under the Licensing Act, they would not be able to recover them. He concluded by saying:

“I see sense in the intention of [the amendment] and, if I may, I shall reflect on it further”.—[Official Report, 16/6/11; col. 911.]

The purpose of the amendment is to press the Government for their response on this issue. I hope that they have some good news for us.

[Baroness Hamwee]

I support the amendment. I reacted rather to the suggestion that what is a marginal cost is therefore almost irrelevant in the case of the authorities affected. I, too, look forward to hearing the outcome of the reflection.

--- Later in debate ---

[Baroness Hamwee]

My Lords, I think that the noble Lord opposite and I would have heard if there had been a discussion. I put that rather gently but firmly.

[Lord Stevenson of Balmacara]

There was, I think, a hint of menace in what the noble Baroness was saying. She was leaning forward slightly, and it was well judged to deliver that blow.

The LGA has indeed been concerned about this issue and has circulated documents widely which address the issue and make the main points that I repeated in the discussions earlier. It has also made it clear that it is very concerned about this matter. Although the Minister said that it was a marginal cost, every pound is important to local government. It is unfortunate that the Government have said that the cost of the bureaucracy of this might outweigh its benefits when those who are responsible for delivering it say that they want it to happen.

The Government are hiding under the question of bureaucracy. They promised a very important principle—that there would be a full cost recovery basis for licensing. They have gone so far down the line but they are not prepared to go the further stage. This is a disappointing result and we would like to test the opinion of the House.

Police Reform and Social Responsibility Bill

Debate between Baroness Hamwee and Lord Stevenson of Balmacara

Thursday 16th June 2011 Lords Chamber

[Baroness Hamwee]

My Lords, I have Amendments 241DA, 241H, 241J, 241K, 241N, 241R and 241S in this group. There is a concern that the late-night levy will not be used very much because of the bureaucracy and costs involved in the scheme, and because only a few local authorities have enough late-night venues to make it worth them running the scheme. We wait to see but, again, my concern is about central prescription.

I understand that the Government regard the levy as a tax and so say that it must be prescribed centrally. I wonder whether that is a bit circular. Can you be a bit circular? You either are or you are not—perhaps it is elliptical. If a local authority had discretion regarding the amount of the levy to reflect the costs, would that make it a charge rather than a tax? Therefore, to mix my metaphors, I am not sure which is egg and which is chicken in all this, but I firmly believe that the levy should be locally determined on the basis of full cost recovery.

I asked the Local Government Association about the costs associated with late-night operation, and your Lordships will not be surprised to learn that the list includes things such as street cleansing, taxi marshals and clearing up in the widest way after the large amount of activity late at night.

The consultation with local authorities on the regulations that relate to all this will be very important but there is a big cost. Because of that, I have transposed the 70:30 split so that in my amendment 70 per cent goes to local authorities to deal with things such as community safety initiatives, regulatory costs and other matters which I have already mentioned. After all, although I know that the police, too, could do with lots more money, they are already funded for areas of high-priority policing. The LGA has commented to me that police commissioners will be attracted to the idea of acquiring 70 per cent of the levy and may place significant pressure on their local authority to bring in the scheme. However, how the police’s 70 per cent should be spent or, perhaps more importantly, where, is not specified. The money could be raised in one area of the police force but used in another.

Amendment 241D reflects the concern of my noble friend in his amendment that local authority areas are not homogenous. If this new power is to be brought in it would be sensible for it to be focused and directed. Amendment 241H would take out the prescription of the amount of the levy. It is fair enough for it to be calculated by way of the formula, which is what Clause 129(1)(b) provides, but not the amount—Clause 129(1)(a) refers to that. I mentioned the 30:70 split which is referred to in Amendment 241N. Amendments 241R and 241S are about prescription and Amendment 241K is a proposed new clauseto provide a power for each licensing authority toset the levy for the reasons to which I have already alluded.

[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.

Police Reform and Social Responsibility Bill

Debate between Baroness Hamwee and Lord Stevenson of Balmacara

Thursday 16th June 2011 Lords Chamber

[Baroness Hamwee]

My Lords, this takes us to the clause on fees and non-payment. I shall speak also to Amendments 240XB, 240XC, 240XD, 240XE and 240XG. These amendments are anti central prescription and pro local discretion. In many places, the Bill seems not only very prescriptive but unnecessarily prescriptive. For instance, it mandates the issuing of a receipt in a specific format in a set timescale. Is that really necessary? The word “nanny” was used, and rightly denied, but at this point, it would be an appropriate accusation. Other fee-paying regimes work out how to deal with these peripheral matters. We have a lot of legislation. This alone is a big Bill, but did it need to contain all this? At the most, it could be a matter for guidance, although I do not think that that should be required either. The Government are seeking to reduce regulatory burdens. This seems to be adding to them.

I shall be very brief on the detail of the amendments. Amendment 240Z would take out the provision for written acknowledgement of receipt of the fee—I cannot believe that that will not be done because people paying money require receipts—and the time periods to which I referred. Amendments 240XC and 240XD increase the grace period. Again, is this prescription absolutely necessary? The grace period is 21 days in the Bill, but I have suggested eight weeks. It is fairly obvious that I oppose my noble friend’s amendment in this group, Amendment 240XH. That follows from what I have just said. I support Amendment 241ZB, to which I think the noble Lord, Lord Stevenson, will speak. I am very glad that the Local Government Association spotted what, coming up to Wimbledon, I can perhaps describe as an unforced error in the legislation. I beg to move.

[Lord Stevenson of Balmacara]

My Lords, I welcome what the noble Baroness, Lady Hamwee, said and support her amendments. The provisions in the Bill are very detailed and our amendments, taken together, are an attempt to try to tidy up some of that and to reflect on the regulatory burden that is being imposed.

I shall speak to Amendment 241ZB, which has been mentioned. Someone spotted what appears to be a simple error: at present, it does not look as though the costs incurred by some parts of the licensing system can be recovered, particularly in two-tier areas. As is well known, when a licensing application is made, copies of the licence are sent to those parts of the council classified as responsible authorities under the Licensing Act. In unitary authorities, including London boroughs, metropolitan councils and Welsh councils, all those bodies exist within the same council, which is also the licensing authority. Therefore, the costs would be recoverable under Clause 122 as presently drafted. However, in two-tier areas, the licensing authority sits within the district council, whereas social services and trading standards sit at the county level. As a result, in two-tier areas, the costs incurred by social services and trading standards would not be recoverable should the clause remain unchanged. Our amendment is therefore imperative to ensure that all costs are recoverable, regardless of the local government structure in the area, thus fulfilling the commendable approach which has been taken in the Bill to allow full cost recovery through licence fees.