Westminster council will now licence pubs and restaurants

On 7 February local authorities take control of issuing licences to pubs, clubs and restaurants, previously under the control of magistrates.

Conservative councillor Audrey Lewis claims the plans have not been thought through and will leave them facing a �4.2m shortfall.

She said the tax payer was the "only place the money will come from".

All councils must publish their licensing policy by Friday.

Rateable value

Cllr Lewis said while the number of licensed premises under their control would go up dramatically the council would get a smaller income than in the past.

Westminster City Council currently licenses about 410 nightclubs, theatres and cinemas and 160 night cafes at a cost of �2,823,000.

Under the new law the council will be responsible for licensing around 3,600 premises - taking on responsibility for pubs and restaurants.

As a result the council predicts it will incur costs of �5.2m from November 2005-6, while receiving only �993,093 in revenue, leaving the council having to cover the deficit.

Cllr Lewis said licensing fees were currently based on what it actually cost to license premises in the city but under new laws fees would be based on the rateable value of a building.

This would result in the council receiving less money from pubs, clubs, hotels and restaurants.

"Licensed premises differ and because of that have different costs and risks associated with them," she added.

"Our existing fees take this into account and we are asking the government to take this on board in the final fee structure and not just use the rateable value of premises."