NE1 Welcomes Repeal of Late-Night Levy After Months of Campaigning
NE1, the Business Improvement District company for Newcastle City Centre, has welcomed Newcastle City Council’s decision to abolish the Late-Night Levy following a concerted campaign led by NE1 and city-centre hospitality businesses. This will save licensees up to £4,400 per year.
NE1 represents the interests of 1,400 city-centre businesses, over 30% of which are in the hospitality sector. Nearly a year ago, hospitality businesses raised concerns about the challenges facing the sector, including the levy, warning that it placed an additional financial burden on their already hard-pressed sector and threatened the survival of many late-night venues.
NE1 took these concerns to Newcastle City Council. It worked closely with the Council, Northumbria Police and licensees to review the levy, including organising joint forums for licensees to provide feedback and discuss how the levy affected their businesses. This collaborative approach helped partners fully understand how the late-night economy has changed since the levy was first introduced and contributed to the historic decision to repeal it with immediate effect. The decision was taken at a full council meeting on Wednesday 7th October.
Newcastle was the only city outside London to apply a late-night levy in this way for operators trading after midnight.
The levy was introduced in 2013 at a time when Newcastle had 13 nightclubs and a late-night economy dominated by vertical drinking and offers-led promotions. Over the past 13 years, the city’s late-night economy has changed dramatically. Just four nightclubs now remain while licensees have developed a more diverse, experience-led and high-quality offer.
Commenting on the repeal of the Late-Night Levy, Stephen Patterson, Chief Executive of NE1 said: “We are delighted that Newcastle City Council has repealed the Late-Night Levy, and we commend them for their willingness to discuss and understand its impacts on the city’s hospitality sector.
“Hospitality businesses are some of the most heavily regulated and highest taxed in the city. They are currently facing significant and well-documented challenges, with the late-night levy seen as an outdated anomaly that no longer reflects Newcastle’s late-night economy.
“We listened to licensees’ concerns and worked with partners quickly to ensure that they were properly heard and that the challenges they faced were fully understood. The abolition of the late-night levy is great news for Newcastle’s hospitality businesses and provides some financial relief for the sector, which still faces challenging times. More importantly, it provides a solid foundation to build on this work, with the council, police, licensees and NE1 all pulling together to create the best possible environment for the sector to thrive.
“Newcastle has an eclectic, diverse and creative licensed trade sector, and that exceptional hospitality offer is central to Newcastle’s global reputation. We will ensure that licensees continue to have a voice and are placed at the heart of decisions made about their sector.”
Cllr Colin Ferguson, Leader of Newcastle City Council, said: “The Late-Night Levy was a measure introduced when the character of the city’s nightlife was different to what it is today. Now, at a time when our pubs, bars and clubs are under so much pressure, it is no longer fit for purpose and places an unfair burden on a small number of licensed venues in the city.
“I am therefore pleased that, in line with the wishes of the trade and public expressed during extensive consultations, we can revoke the Late-Night Levy and give those who were paying some breathing room.
“However, our commitment to safety in the nighttime economy remains as firm as ever. The positive work that the Levy supported will continue, and we believe that working with NE1, Northumbria Police and the Police and Crime Commissioner, we can deliver ongoing, focused and ultimately improved measures to support the safety of everyone, particularly women and girls.
“We’re committed to supporting the incredible hospitality offer Newcastle is famed for, and we will continue to lobby Government for new measures to solve pressures facing the sector and ensure our city can thrive.”
Jack Taylor, Chair of Pubwatch and owner of Cosy Joes in Newcastle said:
"As Chair of Pubwatch and owner of a hospitality business within the city, I welcome the decision to repeal the Late-Night Levy and am thankful to NE1 for their significant work to help us get to this point. The conditions under which the levy was introduced differ significantly from the trading environment we currently find ourselves in, and it is right that the licensed trade will no longer pay an additional charge. It is a great decision by Newcastle City Council, and we look forward to working productively together moving forward.”
Zafer Saygilier, CEO, Sayturk Group said:
“Sayturk Group operates many venues within Newcastle, and we are extremely pleased to see the repeal of the Late-Night Levy. The hospitality industry is facing pressure on many fronts, and this additional charge made trading even more difficult. I commend NE1 for their exhaustive work in championing the interests of the city’s businesses, and Newcastle City Council for taking this positive step to support the licensed sector, which is, after all such a key element of what makes Newcastle a truly special place.”
Featured image: Assorted liqour wines and whisky on display by Paolo Bendandi via Unsplash / Free to use under the Unsplash License
