Police Reform and Social Responsibility Bill

Diana Johnson Excerpts

Thursday 31st March 2011 Commons Chamber

[The Parliamentary Under-Secretary of State for the Home Department (James Brokenshire)]

I beg to move, That the clause be read a Second time.

The new clause addresses the point about the local setting of licensing fees that was debated in the Public Bill Committee. I welcome the hon. Member for Kingston upon Hull North (Diana Johnson) to the Opposition Front Bench. She will recall the discussions that we had on this point in Committee. I welcome other Members who sat on the Committee, and other hon. Members who are present.

In my response to the consultation on the Bill, I said that we intended

“to enable licensing authorities to set licensing fees based on full cost recovery”.

Since then, as I confirmed in Committee, I have been working with colleagues across Government to ensure that we achieve that aim in a way that is fair to all sides. I know that fee payers will be concerned about a change that is likely to see fee income rise overall. However, the fact is that licensing fees have not been increased, even for inflation, since the Licensing Act 2003 came into force in 2005.

The new clause does not represent a change of principle. The current fees are supposed to cover the legitimate costs of licensing authorities in discharging their functions under the 2003 Act. However, there has been widespread agreement for some time that they do not achieve that. The previous Government recognised the problem, and promised an independent review of their proposed fees as early as 2004. The independent panel published its report, known as the Elton report, in December 2006. The recommendations included an increase in fees, but no action was taken. Therefore, the question for this Government is not whether the situation needs to be addressed, but how best to address it.

We could set the fees centrally again, which would have the advantage of providing consistency for fee payers. However, I have chosen to move to set fees locally because I consider that it may be difficult to achieve a close approximation to full cost recovery with nationally set fees. Different areas do not have the same costs, and it is unavoidable that a blanket fee level would leave some councils with a deficit or provide an excessive income to others. No system is ideal, but as a matter of principle, council tax payers in areas with higher costs should not subsidise the administration of the licensing regime, and fee payers in lower-cost areas should not fund wider council activities.

Fee payers should be reassured that locally set fees will not mean that licensing authorities can set whatever fees they like. First, they will only set the level of the fee. They will not be permitted to design new fees or their own fee structure; nor will they be able to use licensing fees as an income stream. The only basis on which they will be able to set fees is to recover their costs in discharging their functions under the 2003 Act. I will issue guidance to local authorities on the setting of fees, including statutory guidance under section 182 of the 2003 Act. To ensure that costs are kept to appropriate levels, that will include guidance on the principles of good regulation, including risk-based and targeted inspection.

To provide further reassurance to fee payers, there will be a nationally set cap on fee levels. Under the new clause, that is provided for by the ability of the Secretary of State to apply constraints to the licensing authority’s ability to set fees. I intend that the level of the cap will be set in regulations after consultation. The consultation will contain a detailed impact assessment of the proposal.

In short, this measure is an important step towards ensuring that the Licensing Act 2003 works as it was intended to work, with fees fully funding licensing authorities’ administration of the Act.

[Diana Johnson (Kingston upon Hull North) (Lab)]

As the Minister pointed out, we debated this issue in the Public Bill Committee on the basis of an Opposition amendment. I am pleased, because he has obviously listened carefully to the arguments that we made. The Opposition were clearly championing the localism agenda, which I know is close to the heart of the coalition Government, so I am pleased that they have decided, at this late stage, to bring forward an amendment of their own on the issue.

We have heard from local government that since 2005, when the regulations of the Licensing Act 2003 were implemented, the licensing system has cost council tax payers more than £100 million more than was anticipated because of the centrally set fee structure. As the Minister said, that structure does not allowing licensing authorities to set cost-neutral local charges.

As the Minister pointed out, the Government had indicated that they were considering giving licensing authorities the power to set licensing fees based on full cost recovery. I am sure that there has been considerable interdepartmental wrangling on this issue, and that that is why the new clause has been brought forward rather late in the day on Report. A number of trade organisations, the Local Government Association and others were concerned to see the original clause in the Bill, so no doubt they will be pleased to see this new clause. However, I wish to raise a number issues with the Minister.

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[James Brokenshire]

This has been a useful debate, and I welcome the contributions from the hon. Members for Kingston upon Hull North (Diana Johnson) and for Cambridge (Dr Huppert)—I am grateful for the hon. Gentleman’s kind comments and thank him for his support and participation in Committee—and my hon. Friend the Member for North Swindon (Justin Tomlinson).

Obviously, new clause 1 relates to the general setting of licensing fees and the administration of the Licensing Act 2003 locally, rather than to the late-night levy. I recognise the points that my hon. Friend the Member for North Swindon has just raised, and perhaps we will debate the late-night levy in further detail when we debate another group of amendments in this part of our consideration of the Bill.

The late-night levy is a discretionary arrangement, so local authorities can decide whether one is appropriate in their area. The Government have indicated that there could be exemptions for establishments that make arrangements under schemes such as Best Bar None. Further detail will come forward in regulations and guidance, as I indicated in Committee, which I hope my hon. Friend accepts.

The hon. Member for Birmingham, Selly Oak (Steve McCabe) mentioned in an intervention the business improvement district in Broad street, Birmingham, which I have had the pleasure to visit. I saw how that partnership-type approach of drawing together the relevant licensed premises and other businesses to provide funds to look after and manage the area. A sad and tragic occurrence led to the establishment of that business improvement district, but it is a good example of how partnership working involving the police, the local authority, licensed premises and other businesses can work.

The Government do not seek to prescribe one specific model of partnership or how partnerships operate, or to say how a local authority should approach its management of licensing-related issues. Those things can be done in various ways, including through a business improvement district, a late-night levy, an early morning restriction order or voluntary arrangements such as community alcohol projects. I went to see the St Neots project when that started, and it is now being rolled forward. We support many such consensual voluntary arrangements whereby various parts of business work with local councils to come up with innovative, practical solutions to address problems on the ground.

The hon. Member for Kingston upon Hull North and others highlighted a number of specific points in relation to new clause 1. As she said, the previous Government tasked the independent fees review panel with consideration of the deficit between the costs and income of licensing authorities. In 2006, it estimated that a 7% increase in fee income was necessary for full cost recovery. Obviously, important points were made in the course of that review and, as I indicated, it was first and foremost in our considerations in introducing the new clause. The Government did not suddenly alight on the new clause at the last moment. Indeed, the original consultation document, which we published last summer, clearly refers to fees. In addition, full cost recovery was very much part and parcel of the consultation, to which we are therefore responding.

We will issue statutory guidance under section 182 of the 2003 Act on the application of good regulation, including risk assessment and targeted inspection, to which licensing authorities must have regard. That will be important as a further framework to the structure of the new arrangements.

Hon. Members mentioned burdens on business. We are obviously cognisant of statements in the recent Budget and the intention to introduce a moratorium to exempt micro and start-up businesses from new domestic regulation. There will be exemptions from the moratorium, and we will obviously need to consider the new licensing legislation, including locally set fees, within that framework. However, I say to the hon. Member for Kingston upon Hull North that there is a clear need to address the gap highlighted in the Elton report. It does not seem right for local authorities effectively to subsidise the processing and activities of the 2003 Act when dealing with licensing arrangements, and I shall say more about that.

[Diana Johnson]

Will the Minister therefore confirm that the one-in, one-out principle will not apply in relation to the Bill, which certainly places a range of regulatory burdens on business?

[James Brokenshire]

The hon. Lady actually made that point in Committee. The Government take one-in, one-out seriously. Regulatory burden was considered closely and carefully during the approvals that led up to the Bill, as part of our broader consideration of the wider arrangements concerning burdens on business. We want to strip away things that are not needed, bureaucratic and unnecessary, but we will come to that in due course when we consider the next group of amendments, which relate to alcohol disorder zones, which clearly have not worked, because no one has taken them up. We obviously consider the new clause to be an important step towards getting the right balance.

The hon. Lady mentioned periodically reviewing the maximum fee level. That is certainly something that we will do. As I said in my opening comments, we also intend to consult properly on the details of the proposals, so that we can take on board the different opinions. There will, therefore, be an opportunity for a number of these matters to be considered further. The hon. Lady asked about the time scale for that. We anticipate that the necessary regulations will be laid in October 2012 to allow that detailed consultation to take place. That is the time scale we are working to in the laying of the relevant regulations. She also asked about guidance. There will be guidance on how locally set fees will operate and on how to set the fees. It is important that there is transparency on how this is undertaken—in many ways, that reflects the comment from my hon. Friend the Member for North Swindon—and clarity on how the fees will be set locally.

A question was asked about what the assessment for setting fees locally will include and what full cost recovery will encapsulate. The new clause makes it clear that the costs that a licensing authority may recover in its fees include those of other responsible authorities and other relevant parts of the licensing authority. That means that marginal costs that relate to duties arising from the Licensing Act can be included. However, policing costs would not be included. In other words, we are looking at the administration of the Act by the relevant local authority. That is how the new clause has been framed. Obviously, however, further consideration of the details can take place as part of the consultation as we move towards introducing the regulations that will sit behind this provision. That also applies to the necessary guidance that will help to inform the framing of the arrangements. Obviously, fees must not represent a blank cheque for local authorities, and fee payers need to be reassured of that. As I have said, a maximum level for each fee will be set in regulations. We will consult formally on the level before we introduce it, and will take evidence from a variety of authorities and fee payers to ascertain the satisfactory maximum sum for each fee.

I hope that I have addressed hon. Members’ comments made during the debate. I also hope that all hon. Members will recognise that this is a sensible proposal, that we have listened to representations made from different quarters and that this provision will deal with the shortfall for local authorities. We are introducing the measure in a considered way, recognising the pressures on local authorities and businesses, and we believe that it is appropriate. We consulted on the new clause last August, and I hope that hon. Members will be minded to support it.

Question put and agreed to.

New clause 1 accordingly read a Second time, and added to the Bill.

New Clause 2

Alcohol disorder zones: repeal

‘Sections 15 to 20 of the Violent Crime Reduction Act 2006 (alcohol disorder zones) are repealed.’.—(James Brokenshire.)

Brought up, and read the First time.

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[James Brokenshire]

It would be fair to say that it probably was not the biggest selling point of the policy to have that tag attached to a local area. It was probably, therefore, one of the disincentives. However, the problem had more to do with the levels of bureaucracy, including the impact of making some of the extremely challenging calculations necessary. I do not think that any local authority has felt brave enough to come forward. The Government are committed, therefore, to reducing the burden. The tools and powers available to local authorities must be simple to adopt and proportionate to the problem. Early morning restriction orders, for example, will, by stopping the sale of alcohol, be a simple way for local authorities to tackle specific problems at specific times and on specific days. That is something that we recognise and have taken forward in the Bill. We have sought to apply a more flexible approach through early morning restriction orders.

The late-night levy will be an optional power for local authorities to raise a contribution to the large policing costs incurred in the late-night economy, as well as supporting costs of local authorities in managing the late-night economy. The levy has been specifically designed to be simple for licensing authorities to adopt. We considered the repeal of alcohol disorder zones in our public consultation last year. The responses overwhelmingly supported repeal. Local authorities and the police spoke of the evidential burden, while businesses identified the policy as ineffective. I am sure that hon. Members will agree that alcohol disorder zones should no longer be on the statute book. I therefore ask that the new clause be incorporated in the Bill so that we can finally put this failed policy to rest.

[Diana Johnson]

Clearly, the new clause is a housekeeping matter for the Government in tidying up licensing legislation. I listened carefully to the Minister’s comments on the need for simplicity and a proportionate response to alcohol problems late at night. However, I do not think that the blanket approach being adopted under the late-night levy is proportionate. I would caution the Minister. Let us consider a large area of the country such as the East Riding of Yorkshire. If the local authority was minded to apply a late-night levy to the whole of the East Riding, small country pubs with no problems would have to pay the levy as well as places in more built-up areas, such as Bridlington, that do have problems late at night. The Government’s approach through the late-night levy might almost be described as the son of the alcohol disorder zones.

[Mark Tami (Alyn and Deeside) (Lab)]

Does my hon. Friend also accept that the club that people end up in will sometimes not be where they start consuming alcohol? In fact, they might not even have a drink there, but that can be where the problem occurs.

[Diana Johnson]

My hon. Friend makes an important point. Indeed, when it comes to licensing, one disappointing aspect of the Bill is the failure to deal with pre-loading and the low cost of alcohol in supermarkets. This Bill would have been an opportunity for the Government to legislate to deal with those issues, and there is concern that they seem to have missed it.

I am concerned that businesses that already contribute to voluntary arrangements—they include Pubwatch and Best Bar None, to which hon. Members have referred—may feel penalised if they are then asked to make contributions to the late-night levy as well. There is also concern that because the provision will affect only licensed premises that sell alcohol, it will not deal with, say, problems with late-night takeaways. If the Minister is minded to do so, it would be worth considering whether the late-night licence should include all parts of the late-night economy. That would seem to be the fairest way of dealing with the issue.

[Dr Huppert]

I am delighted to support new clause 2. It would remove sections 15 to 20 of the Violent Crime Reduction Act 2006, which were totally ineffective and did not work. I suggest that those provisions were also slightly tokenistic. Indeed, the previous Government fell into the trap of doing a lot of things that were token demonstrations. It is an easy trap to fall into, and I do not think that doing things for tokenistic reasons was unique to the last Government. I hope that this Government will learn the lesson of not doing things because they look good, but will continue to make great efforts to ensure that whoever forms the next Government will not have the same things to say about us.

One of the lessons learned about why those provisions were ineffective is set out in clause 125(4), which deals with the late-night levy requirement. That lesson, which has just been discussed, is how we draw the boundaries of an area. We cannot take the model of the past, which involved drawing boundaries very roughly. Therefore, the Minister decided that an area must be an entire council area, as has been said, although that causes problems in Cornwall, which is a large council area. Perhaps we should learn a slightly different lesson, which is that although we should not have complete flexibility of boundaries, we could have some flexibility. Perhaps the rule should be that we can combine entire ward areas, which would avoid the problems of the provisions that we are getting rid of, but make their replacement work a little better.

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[Diana Johnson]

It has been interesting to listen to the practical experiences of the hon. Members for Brigg and Goole (Andrew Percy) and for North Swindon (Justin Tomlinson). Given his practical business experience, what does the hon. Member for North Swindon think about the possibility of having a late-night levy and an early morning restriction order operating at the same time?

[Justin Tomlinson]

There would be obvious challenges. For example, if a local authority decided to charge any venue open after midnight a late-night levy but made it close at 12.15, that would not give it an opportunity to generate enough additional income to pay for the late-night levy. My proposal would be to bring the local authority, the police and the late-night venues together to discuss the matter. No venue will openly say that it wants to pay a late-night levy, because it adds an extra cost to its bottom line, but if that money were seen to be spent on improving the safety and enjoyment of the vast majority of people, allowing them to get home safely and quickly after a night out, they would be more likely to go out again and spend money.

I am trying to strike a balance between being proactively supportive of people going out and enjoying themselves and considering those who have to deal with the minority who cause problems. To ensure that this works, I would make it compulsory for those responsible for running venues—the managers, the keyholders, the licence holders—to sit round the table with the local authority, the licensing people and the police. This practice can encompass schemes such as Best Bar None and Pubwatch, and approaches that bar troublemakers from all the venues in an area if they cause trouble in just one. In that way, the vast majority who go out to enjoy themselves on Friday and Saturday nights will have their experience enhanced, and the industry will benefit because its perception and reputation will be greatly improved.

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[James Brokenshire]

I think I made it clear in Committee that in those circumstances we would allow people to change their licence conditions to avoid the levy. Temporary event notices for specific issues would be considered under the TENs regime.

[Diana Johnson]

Will the Minister confirm that if a pub or venue operates just once in a year for which the late-night licence after midnight or 1 am applies, it will be subject to a late-night levy? Will the Government consider allowing, say, five or 10 opportunities for a pub to open during the year before the late-night levy kicks in?

[James Brokenshire]

Again, I think I said in Committee that we would want to look at such issues in the detail of the regulations. There are some specific points, as I said in Committee, that it would be appropriate to examine further. As part of that, we would want to give flexibility to encapsulate the schemes we have debated this afternoon—the Best Bar None and other voluntary schemes—so that some credit could be applied. I stress that the provisions are intended to be flexible, but if it became clear that the levy was not effective, at that stage—once implementation has taken place and an appropriate period had elapsed—it would be appropriate, as with any measure, to review it. We believe, however, that the provisions already have the required flexibility and are workable, and that they will not have the same bureaucratic problems as alcohol disorder zones. We believe that they are an important means of aiding the management and control of the late-night economy, many areas of which have been badly affected by the introduction of the Licensing Act 2003, without necessarily taking account of the consequences that have occurred.

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[James Brokenshire]

On the venue-specific point, if there are problems, a review of licensed premises can be conducted. That is also why we included provisions to strengthen the enforcement of the laws against under-age sales.

Can problems with pre-loading, post-loading and so forth be pinned down to one specific area or not? We think that setting the levy on a time basis is fair and equitable, involving the provision of funding for local authorities to look at taxi marshals and manage the late-night economy in its broadest sense. By narrowing it down, the provision might start to lose some of the intent behind it, which is to help the police and local authorities to manage the late-night economy—if that is what they choose to do. I remind hon. Members that this is a discretionary power for local authorities to determine.

[Diana Johnson]

The Minister has made it clear again that this is a discretionary power that local authorities can exercise, but he has also made it clear that there were no alcohol disorder zones, so I wonder how many local authorities he expects to apply the late-night levy. That knowledge will help us to gauge its success in the future.

[James Brokenshire]

Strangely enough, this Government do not believe in central targets. The hon. Lady tempts me down that path, but I have to say that I have no specific target. I refer her to the regulatory impact assessment, which she will have read assiduously, as it sets out the level of fees forecast. The regulatory impact assessment sought to examine possible options and estimate what might be recovered by the late-night levy. Rather than count up the number of local authorities, however, I point her to that assessment. We hope it will be successful.

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[James Brokenshire]

My hon. Friend makes some powerful points, which bring us neatly back to the subject of alcohol disorder zones. I do not think that they met the tests that my hon. Friend has just identified. For that reason, we think it right to end a policy that sadly became an alcohol disarray zone, given the challenges that stood in the way of its being brought to fruition. We believe that there is merit in providing local authorities and the police with funds enabling them to manage the late-night economy; we believe that the right way in which to do that is through the late-night levy; and we believe that it is time to end the ADZ episode, which has clearly been a failure.

Question put and agreed to.

New clause 2 accordingly read a Second time, and added to the Bill.



New Clause 3

General duties of licensing authorities

‘(1) The Licensing Act 2003 is amended as follows.

(2) In section 4 (General duties of licensing authorities) insert—

(a) protecting and improving public health.”.’.—(Diana Johnson.)

Brought up, and read the First time.

[Diana Johnson]

I beg to move, That the clause be read a Second time.

The Licensing Act 2003 sets out the four licensing objectives that must currently be taken into account when a local authority carries out its licensing functions: the prevention of crime and disorder, public safety, the prevention of public nuisance, and the protection of children from harm. The new clause would introduce a fifth objective: to protect and improve public health. We tabled it to deal with three key issues. First, there is the fact that public health is far more prominent and talked about than ever before. Secondly, there is the role of primary care trusts and, in future, local authorities, which is relevant to clause 104. Thirdly, there is the current position in Scotland.

Let me explain first why we think the issue of public health is so important. As an Opposition spokesman, the Secretary of State for Health made clear his strong commitment to it. So committed was he that he planned to rename the Department of Health “the Department of Public Health” if the Conservatives came to power. Obviously that has not happened, but the Secretary of State is very busy with his Health and Social Care Bill, and we know that he is trying to rename the NHS “the HS”—to get rid of the “national”.

The widespread view is that there is a proper role for Government in the promotion of good public health. We know from the provisions of the Health and Social Care Bill that one of the few budgets that will be ring-fenced in future is the public health money that will pass from the PCTs to local authorities in 2013. However, the Government have experienced big problems in their approach to public health. This month we have seen the fall-out from their stance on self-regulation by the drinks industry through the responsibility deal. A number of health groups have walked away from the discussions and the agreement, including the British Heart Foundation.

Don Shenker, the chief executive of Alcohol Concern, made clear his view that the Government’s approach to public health will not work. He said that the responsibility deal was

“the worst possible deal for everyone who wants to see alcohol harm reduced”,

and that it had no sanctions to impose if the industry failed to fulfil its pledges. He described those pledges as “half-hearted”,

and that the

“government has clearly shown that when it comes to public health its first priority is to side with big business and protect private profit.”

Let us consider what has already been said about this issue, and the action that the Government have taken so far. Yesterday the hon. Member for Totnes (Dr Wollaston) presented a ten-minute rule Bill to restrict the marketing of alcohol to children and young people. She made a telling point in expressing concern about the fact that the Government were putting the fox in charge of the chickens. They have, for instance, set their face against the idea of making personal, social and health education compulsory. That would have provided an excellent opportunity for young people to be taught about the effects of alcohol and the long-term health consequences of drinking too much.

In January, the Minister set out the coalition Government’s plans in relation to minimum pricing. He said that they wanted alcohol to be sold at the level of duty plus VAT. Many people, including representatives of many health organisations, have pointed out that that will have little effect on the price of alcohol in supermarkets, many of which will continue to sell alcohol that is cheaper than bottled water. It also contradicts the view of Liam Donaldson, the former chief medical officer, that there should be a minimum price of 50p per unit.

[Dr Huppert]

I wonder whether the hon. Lady can help me, given that I am a new Member, by reminding me what the minimum price was under the last Government.

[Diana Johnson]

As I am sure the hon. Gentleman knows, because he pays close attention to these issues, there has been a continuing debate for some time about the need to reach a conclusion that everyone considers appropriate. The problem with the announcement from the coalition Government is that it is causing most people to think that it will have no effect at all.

I know that the hon. Gentleman sets great store by academic research and evidence. According to research carried out by Sheffield university, pricing measures will only be significantly effective from around the 40p per unit mark. It is feared that the coalition Government’s preferred level will be not 40p but much lower, and that they have missed the opportunity to make significant strides in dealing with the problem of alcohol abuse.

As I pointed out during a previous debate, the Bill contains no provisions dealing with minimum pricing, and I think most people would consider that a great shame. We were looking forward to legislation shortly after the announcement in January. The Government are clearly in some disarray when it comes to public health and alcohol, but the new clause offers them a real opportunity to reassert their commitment to improving public health and dealing with some of the public health problems associated with alcohol. We believe that we are helping them to achieve what I am sure all Members agree is the very proper aim of ensuring that alcohol-related problems are dealt with properly by the House. Therefore, if the Government were to add in health and this further objective in respect of licensing, it would show that they are serious about the problem of public health, and it would also deal with the problems they have faced since taking office last May.

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[James Brokenshire]

That was an interesting contribution from the hon. Lady. She said that she felt public health had been ignored for a long time, but she made a slight mistake by highlighting that. That is why I am delighted that my colleagues in the Department of Health are taking this matter seriously in their approach to Public Health England, which is giving proper attention to public health. It is a shame that the hon. Lady made those comments because we have had a reasonable debate and she unfortunately decided to make more partisan attacks during that contribution. Perhaps it is worth reminding ourselves of how we reached this point on the accident and emergency issues and of all the pressures that are brought to bear on our health service and on the police. The vibrant café culture had been promised and written up as part of the reforms introduced by the Licensing Act 2003, but it failed to materialise. That is why we are taking steps in this Bill to address licensing issues.

I agree with the hon. Lady that public health issues are involved here and that there is merit in making health a material consideration in the 2003 Act. The Government stated that in their response to the “Rebalancing the Licensing Act” consultation, which contained a specific consultation point on the matter, and we committed to considering the best way to take this issue forward. However, my view is that the issue requires further consideration, alongside wider Government work, to address the harm alcohol causes to health.

It is important to highlight the fact that the Bill has sought to bring certain changes into effect, such as enabling primary care trusts, as health bodies, to make representations. Health bodies have a clear interest in the existing 2003 Act objectives of “public safety” and “crime reduction”, as illustrated in: alcohol-related accident and emergency attendances; ambulance journeys following road traffic accidents and other accidents; glassing and other injuries; alcohol poisoning cases and so on. That directly relates to how those health bodies are able to make representations under the Bill. Drunken accidents and injuries comprise a high proportion of accident and emergency attendances—the estimate is up to 70% on Saturday nights. When added to ambulance costs, they cost the NHS about £1.1 billion a year, so this is a legitimate focus for licensing.

[Diana Johnson]

Members on both sides of the House want to ensure that we get the best possible policy on alcohol and public health—we all have an interest in doing that—but can the Minister explain to me what he expects the PCT to provide on an individual licence application? A lot of bureaucracy will be involved if the individual licence application has to involve accident and emergency statistics. Are they what he expects the PCT to provide?

[James Brokenshire]

In some areas, NHS organisations already share anonymised A and E data with the police. Such intelligence can highlight where violent incidents occur and any hot-spot premises, thus supporting police representations at licensing hearings and wider law enforcement. Making local health bodies responsible authorities will encourage the effective collection and sharing of anonymised A and E data and other robust and targeted evidence for licensing authorities to consider.

The hon. Lady specifically asked how the role of local authorities will be managed in the context of Public Health England. She will be well aware that licensing authorities become responsible authorities under the Bill and are therefore able, in essence, to make their own representations. Obviously, different functions are carried out by different parts of the local authority, as happens in planning. The licensing committee is able to consider applications and relevant legislative issues, so there is a broad read-across in how a local authority is able not only to make representations but to determine things. A local licensing panel will have an almost quasi-judicial role in that situation, as does a planning authority.

I want to return to some of the hon. Lady’s other points.

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On pricing, which has been raised by the hon. Member for Kingston upon Hull North and the hon. Member for Birmingham, Selly Oak (Steve McCabe), we have announced that we intend to ban below-cost sales, setting at the level of duty plus VAT. That is an important first step in setting out a framework that we can evaluate and work from, so I see it as an important first step in dealing with the impact of alcohol prices on public health and on crime and disorder. These are complex issues, which is why it is important to do things in a measured way.

[Diana Johnson]

The Minister announced in January his intention to legislate on minimum pricing. Can he update us on when those measures will come before the House?

[James Brokenshire]

We are considering this matter very carefully so that it is introduced in a less bureaucratic and a straightforward way. We will put further proposals before the House in due course because this is something we are committed to. Having made the announcement, we will be following through on this. It is important to ban below-cost sales and introduce the duty-plus-VAT measure that we announced at the start of the year. The Government are committed to following through on that.

The Government have already made provision in the Bill to make primary care trusts and local health bodies responsible authorities. That will ensure that local health bodies can influence licensing determinations by making representations based on local health evidence such as accident and emergency statistics. Those representations will need to be linked to existing licensing objectives to be relevant. Health bodies have a clear interest in the existing Licensing Act objectives, as I have mentioned, so we think it is an important step to recognise their role in that way.

For the reasons I have given, I ask the Opposition not to press the new clause and to allow the Government to examine this issue further and learn from the evidence and experience that is emerging from elsewhere. We can then consider what is the best way of legislating to make public health a material consideration within the licensing process, thereby recognising the points that have been made this afternoon and, equally, that this is a complex area. Doing things effectively and in the right way is the best course of action.

[Diana Johnson]

I am grateful to the Minister for his warm words about looking at public health and alcohol and I hope that we will see some more action on this. On minimum pricing, I am concerned that the announcement was back in January but I think there is genuine willingness to move forward on this. I have set out my concerns that the minimum pricing level that the coalition has announced is not high enough, but if we are going to do this, let us get on and do it. I do not quite understand why there is delay, because the coalition has made its announcement and stated its position. I listened to the Minister’s comments about the time frame, but “in due course” can mean quite a few things in the House of Commons, so I will certainly be looking to see what progress is made, because it is time to get on with this.

It is disappointing that the Bill does not address the issues of pre-loading and the concerns that people are expressing up and down the land about the low cost of alcohol in supermarkets. I am keen to work positively with the coalition on this important issue and I strongly hope that there will be real progress in the coming months. I hope also that the health organisations that have walked away from the responsibility deal negotiations can be brought back in and reassured that there is genuine commitment on the part of the coalition to deal with health and alcohol issues. On the basis of what the Minister has said, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

[James Brokenshire]

I beg to move amendment 22,  page 87, line 26, leave out ‘authorisations’ and insert

‘premises licences and club premises certificates’.

[James Brokenshire]

These are minor amendments to the late-night levy clauses in part 2 that clarify the effect of the provisions. To avoid possible misinterpretation, the Bill should use consistent terminology. Amendments 22 and 30 intend to achieve that end. Amendments 26 and 27 amend clause 133 merely by making it clear that if licensing authorities amend the categories of premises in their area that benefit from an exemption or reduction in their levy liability for a subsequent year there may already be none as well as one or more premises in those categories for the existing year.

Amendments 28 and 29 remove a drafting error in clause 133 and clarify the basis on which licensing authorities must ensure that any exemption or reduction categories that apply in their areas in a subsequent year accord with the categories prescribed in regulations. Amendments 23, 24 and 25 ensure that local authorities do not suffer a burden in introducing the late-night levy. They do not change the intention underlying the levy, nor do they change the burden on business.

The Bill as it stands allows licensing authorities to deduct the costs that they incur in the “collection, administration or enforcement” of the levy from the levy revenue. However, it has become clear that that phraseology, including the reference to administration, does not include the specific costs of introducing the levy. A licensing authority will need to carry out a number of administrative procedures before collecting the levy. First, it will hold a consultation on the way in which it wishes to operate the levy. That is an important process, and it ensures that the community’s opinions are heard. Following a decision to adopt the levy, the licensing authority will announce its intentions. Some businesses will decide that they do not open long enough in the levy period to make it worth while to pay it. To avoid the levy, those businesses will be able to make a free change to their licence. However, that means that licensing authorities must process the licence variations without recovering costs. Amendments 22, 23, 24 and 25 will ensure that licensing authorities can deduct the costs of those introductory processes from the levy revenue.

I do not want the levy to become a burden on licensing authorities. It has always been my intention that it should be self-funding while raising a significant amount of money for the police and other organs of local government. The amendments ensure that that is the case. Let me reiterate that the amendments will have no further impact on business. We have published indicative levy charges, which will remain the same. To make some simple clarifications and to ensure licensing authorities bear no burden as a result of the late-night levy, I urge the House to accept the amendments.

[Diana Johnson]

May I ask the Minister to clarify a few points? There will be a number of changes to the licensing provisions in the months and years to come, and I should be grateful if he set out his intentions on whether additional support or resources will be provided for local authorities when those new schemes are adopted. For instance, will additional financial resources be made available to assist local authorities with the late-night levy and early morning restriction orders in ensuring that information is provided to businesses? Clear guidance should be issued about what that will mean for businesses.

We have held a number of short debates about the late-night levy and the possibility that operating just one night a year can make a business liable for the levy. Businesses are often busy just trying to operate on a daily basis without having to get to grips with the minutiae of new legislation. Will the Minister set out what the Home Office intends to do to ensure that businesses are fully acquainted with the requirements of the new legislation and exactly what it will mean for them? Costs can be deducted from the late-night levy if someone has participated in the consultation on whether to have a late-night levy. Will that all be set out in a clear and transparent way so that businesses understand exactly why they will have to pay a certain amount? Setting things out in a clear format that is easy to understand will be the key to ensuring that the new licensing provisions operate well. If the other amendments in the group are intended just to tidy up the legislation and make it read more smoothly, my only question is on how the operation of getting information out to businesses would be provided.

[James Brokenshire]

I thank the hon. Lady for her comments. Her point on guidance is relevant. As I have indicated, as part of the implementation of the late-night levy it is intended that guidance would be drawn up on the process and that it would deal with some of the detail in regulations on the issues I have already highlighted. [Interruption.] I have only started and already the hon. Lady wants me to give way.

[Diana Johnson]

Will the guidance provided on that basis be statutory guidance, or guidance that can be ignored?

[James Brokenshire]

I am not sure that guidance can be ignored. It is intended to be of assistance in the implementation of the proposals on the late-night levy. The key element that the hon. Lady has highlighted relates to costs and resourcing. We are bringing forward some of these changes to ensure that licensing authorities can take account of the set-up costs relating to the late-night levy, which might otherwise be an issue. We think that it is important to introduce the amendment to ensure that, as with the different examples I have already given, there are no unintended consequences and that, if we are seeking to ensure that costs are properly attributed, that is built into the structure of the late-night levy.

The hon. Lady made a general point on transparency and how costs are to be drawn up. That is a fair point which I take on board, and we will work through that in detail on implementation so that businesses are clear about the calculation and which costs will be brought into effect for the deduction. It is worth saying, however, that it is a deduction and the levy itself is a fixed figure; we are talking simply about what is being deducted and the 70:30 split, with which she will be familiar. In some ways that relates to our previous debate on the general licensing fees and the costs that can be attributed for the maintenance of the Licensing Act. Some of her comments may be addressed in that direction as well.

Clearly, we want to ensure that the late-night levy is a success. We want local authorities to come forward with it. We believe that allowing the set-up costs is an important part of ensuring that the levy operates well and does not have unintended consequences. That will ensure—this reflects some of the comments in the preceding debate—that the levy will be used by local authorities, will be useful and will contribute to managing the late-night economy and dealing with some of the challenges we have heard about this afternoon. That is why we believe that the Bill and its provisions on the late-night levy mark an important step forward in assisting local communities and local authorities to manage the problems of alcohol and the late-night economy. I therefore hope that hon. Members will be minded to support the amendment.

Amendment 22 agreed to.

Clause 130

Net amount of levy payments

Amendments made: 23, page 89, line 20, leave out from ‘of’ to ‘may’ in line 22 and insert ‘relevant expenses which’.

Amendment 24, page 89, line 23, leave out third ‘the’ and insert ‘any’.

Amendment 25, page 89, line 28, at end insert—

‘(2A) In subsection (2)(a), “relevant expenses” means expenses incurred by a licensing authority in the administration of the late night levy requirement including, in particular, such expenses incurred in, in connection with or in consequence of—

(a) any decision mentioned in section 134(1);

(b) collection of payments of the late night levy;

(c) enforcement of the late night levy requirement.

(2B) Expenses incurred by a licensing authority which fall within subsection (2A)(a) include, in particular, expenses which it incurs in connection with any application made by virtue of section 134(2)(c).’.—(James Brokenshire.)

Clause 133

Amendment of late night levy requirement

Amendments made: 26, page 90, line 38, leave out ‘different’ and insert ‘any’.

Amendment 27, page 90, line 39, after ‘apply’, insert

‘in addition to any that currently apply, or to cease to apply,’.

Amendment 28, page 91, line 7, leave out 'by virtue of section 132(1)(b) or (iii)'

and insert

‘as the result of a relevant decision’.

Amendment 29, page 91, line 11, at end insert—

‘( ) In subsection (4)(b), “relevant decision” means a decision under—

(a) section 132(1)(b)(ii) or (iii), or

(b) subsection (1)(c) of this section.’.—(James Brokenshire.)

Clause 135

Permitted exemption and reduction categories

Amendment made: 30, page 92, line 41, leave out from ‘all’ to ‘that’ in line 42 and insert

‘holders of relevant late night authorisations in’.—(James Brokenshire.)

Clause 140

Demonstrations in vicinity of Parliament: repeal of SOCPA 2005 provisions