Explanatory note

These Regulations prescribe a number of matters relating to application of the late night levy (“the levy”). The framework for the levy is set out in Chapter 2 of Part 2 of the Police Reform and Social Responsibility Act 2011 (“the 2011 Act”). This framework enables a licensing authority in England and Wales to introduce a late night levy in its area if it considers it desirable to raise revenue in relation to the costs of policing crime and disorder connected to the supply of alcohol in that area between midnight and 6am. If the levy is introduced, it is payable by holders of premises licences or club premises certificates which authorise the supply of alcohol at times beginning at or after midnight and ending at or before 6am (the licensing authority may determine the times but these must be the same each night). Section 126(2) of the 2011 Act defines such licences and certificates as relevant late night authorisations.

The framework for the levy confers a number of powers on the Secretary of State to prescribe by regulations a number of matters relating to the administration or application of the levy. These matters include the basis on which licensing authorities may deduct their expenses of administering the levy from levy receipts, and the categories of holders of relevant late night authorisations which the licensing authority may decide are exempt from the levy (“permitted exemption categories”) or are afforded a reduction to their liability for the levy (“permitted reduction categories”).

Regulation 1 makes provision to enable these Regulations to come into force simultaneously with the commencement of the provisions in Chapter 2 of Part 2 of the 2011 Act, because these Regulations prescribe matters which are necessary to give effect to those provisions.

Regulation 3 prescribes the descriptions of expenses which a licensing authority may deduct from levy receipts for the purpose of calculating the net amount of levy payments for any levy year. These are a licensing authority’s expenses in relation to:

• the procedure it must follow when introducing or amending the levy in its area,

• its collection and enforcement of the levy,

• the authority’s application of the net amount of levy payments (whether by virtue of payment to the local policing body or in its application of its share of this sum in relation to arrangements it has put in place under section 131 of the 2011 Act), and

• its publication of a statement of estimated expenses (before the beginning of the levy year) and a statement of the net amount of levy payments (after the end of the levy year).

Regulation 3 also prescribes the basis on which payments of the levy to a licensing authority and its expenses are each attributed to a levy year.

Regulation 4 prescribes the permitted exemption categories. These are categories of holders of relevant late night authorisation (defined in section 126 of the 2011 Act) which a licensing authority may decide should not be liable to pay the levy. The categories include holders in relation to premises which are hotels, theatres, cinemas, bingo halls, community amateur sports clubs, community premises, public houses entitled to rural rate relief, participants in business improvement districts for relevant purposes and licensed premises which supply alcohol in the early hours on New Year’s Eve.

Regulation 5 prescribes the permitted reduction categories. These are categories of holders of relevant late night authorisation which a licensing authority may decide should be entitled to a reduction from their liability to pay the levy. The categories include holders in relation to premises which are members of best practice schemes established for relevant purposes and which require active participation by their members, and certain licensed premises which are entitled to small business rate relief.

The reference in regulations 4 and 5 to “relevant purposes” in relation to the requirement which business improvement districts (in relation to permitted exemption categories) and best practice schemes (in relation to permitted reduction categories) must meet is defined as purposes which result in, or are likely to result in, the reduction or prevention of crime and disorder in connection with the supply of alcohol at premises in relation to which a relevant late night authorisation has effect.

A full regulatory impact assessment on the effect of this instrument is annexed to the Explanatory Memorandum which is available alongside this instrument on www.legislation.gov.uk.