Late Night Levy for licensed premises

What is the Late Night Levy?

The Late Night Levy is an optional annual charge that licensing authorities in England and Wales can impose on premises licensed to sell alcohol during the late night supply period - between midnight and 6am.

The levy was introduced by the Police Reform and Social Responsibility Act 2011 to help fund the costs of policing and managing the late-night economy. Not all local authorities operate a levy, so check with your council whether one applies in your area.

If you hold a premises licence or club premises certificate that authorises the sale of alcohol at any time between midnight and 6am, you may be required to pay the levy - regardless of whether you actually trade during those hours.

Who must pay the Late Night Levy?

You must pay the Late Night Levy if:

• Your premises is in an area where the local authority has adopted the levy
• Your premises licence or club premises certificate authorises the supply of alcohol at any time between midnight and 6am
• You are not exempt under one of the specified categories

The key point is that it is your licensed hours that matter, not your actual trading hours. If your licence permits late-night alcohol sales, you pay the levy even if you rarely use those hours.

Late Night Levy rates 2026/27

The annual levy amount depends on your premises' non-domestic rateable value (the value used to calculate your business rates). Venues primarily used for on-premises alcohol consumption pay a higher rate through an alcohol multiplier.

Where the levy revenue goes

The Late Night Levy is specifically designed to fund late-night policing and management. The revenue is split between the Police and Crime Commissioner and the local authority, with strict rules on how the money can be spent.

Reductions and exemptions

Licensing authorities have discretion to offer reductions from the Late Night Levy for premises participating in best practice schemes or meeting certain criteria. Some premises types may be wholly exempt from the levy.

30% reduction for best practice

If your premises participates in a qualifying best practice scheme, you may receive a 30% reduction. Qualifying schemes include Business Improvement Districts (BIDs), Pub Watch, Best Bar None, and other local schemes with clear crime reduction objectives. Your local authority's Licensing Policy Statement will specify which schemes qualify.

Small business relief

If your premises has a rateable value of £12,000 or less and you are receiving small business rate relief, you may qualify for a 30% reduction in the Late Night Levy. This helps smaller venues manage the additional cost burden of late-night licensing.

To claim small business relief:

• Confirm your rateable value is £12,000 or below
• Ensure you are receiving small business rate relief on your business rates
• Apply to your licensing authority for the levy reduction
• Provide evidence of your rate relief status

Avoiding the levy altogether

If the Late Night Levy applies in your area and you do not actually need late-night alcohol hours, consider applying to vary your premises licence to remove the hours between midnight and 6am. This removes the levy obligation entirely.

A minor variation (which cannot extend hours) costs £89 and takes approximately 10 working days. A full variation costs between £100 and £1,905 depending on your rateable value band. Either option may be cheaper than paying the annual levy over time.

Early Morning Restriction Orders (EMROs)

Separately from the Late Night Levy, licensing authorities can make Early Morning Restriction Orders to prohibit alcohol sales during specified hours between midnight and 6am in problem areas. EMROs restrict trading rather than impose charges.

Relationship between EMROs and the Late Night Levy

EMROs and the Late Night Levy are separate powers that can operate simultaneously. A local authority could:

• Operate a Late Night Levy across the whole area (charging premises for late-night licensing)
• Implement an EMRO in a specific problem zone (preventing late-night sales in that zone)

If an EMRO applies to your premises, you cannot sell alcohol during the restricted hours regardless of your licence. However, if your licence still technically permits those hours, you may still be liable for the Late Night Levy unless you vary your licence.

No EMRO has been successfully implemented in England and Wales to date, though the powers remain available to licensing authorities.

Cumulative Impact Policies

Local authorities can also adopt Cumulative Impact Policies (CIPs) to control the concentration of licensed premises in specific areas. Unlike the Late Night Levy (which affects existing premises) and EMROs (which restrict hours), CIPs primarily affect new licence applications.

Cumulative Impact Areas: planning your application

Home Office data recorded 182 Cumulative Impact Areas across 75 local authorities in England and Wales as of March 2024 (the most recent published figures - check your local authority's current licensing policy statement). If you are planning to open new premises or vary your licence in a CIP area, be prepared to:

• Demonstrate your premises will not add to cumulative impact problems
• Propose robust management conditions in your operating schedule
• Consider limiting your requested hours to reduce objections
• Engage early with police and environmental health officers
• Budget for potential legal representation at a hearing

Check your local authority's Licensing Policy Statement to see if your proposed location falls within a CIP area and what specific premises types are affected.

Extended scope: late-night refreshment

From July 2023, the Late Night Levy can also apply to premises licensed for late-night refreshment (serving hot food and drink between 11pm and 5am), not just alcohol premises. This means takeaways, fast food outlets, and late-night cafes may be brought within scope where local authorities choose to extend the levy.

If your business serves hot food between 11pm and 5am, check with your local authority whether they have extended their Late Night Levy to include late-night refreshment venues.

Payment and administration

The Late Night Levy is typically collected annually alongside your annual premises licence fee. Your local authority will notify you of the amount due and the payment deadline.

Failure to pay can result in automatic suspension of your premises licence under the Police Reform and Social Responsibility Act 2011. If your licence is suspended for non-payment:

• You cannot sell alcohol until payment is received
• Trading while suspended is a criminal offence with unlimited fines
• Suspension ceases on the day payment is received

Strategic considerations for late-night operators

If you operate or plan to operate during late-night hours, consider these factors:

Financial planning

• Factor the Late Night Levy into your operating costs if you need hours after midnight
• Calculate whether the revenue from late-night trading justifies the levy cost
• Explore whether best practice scheme membership offers worthwhile savings

Licensing strategy

• Only apply for hours you genuinely need - each hour between midnight and 6am could cost you
• Consider terminal hours that end just before midnight if your business model allows
• Review your licensed hours annually and vary them down if late-night hours are unused

Community engagement

• Join local Pub Watch or Best Bar None schemes for reductions and police cooperation
• Engage positively with the night-time economy coordinator if your area has one
• Demonstrate responsible operation to protect your licence at review hearings