(Image: Agency)
A levy on late-night venues has been scrapped after a long campaign by hospitality leaders.
In Newcastle, this week's decision to abolish the Late-Night Levy is expected to save licensees up to £4,400 a year.
The levy was introduced in 2013 and applied to venues operating after midnight.
The levy was a charge imposed on pubs, clubs, and bars that served alcohol between midnight and 6 am.
The funds raised from this levy were used for various purposes, including late-night policing and public safety initiatives.
At the time, Newcastle had 13 nightclubs and a nightlife scene dominated by vertical drinking and offers-led promotions.
Now, just four nightclubs remain, and the city has shifted to a more diverse, experience-led offering.
The move follows a campaign by NE1, the Business Improvement District company for Newcastle city centre, and hospitality businesses.
Stephen Patterson, chief executive of NE1, said: "We are delighted that Newcastle City Council has repealed the Late-Night Levy, and we commend them for their willingness to discuss and understand its impacts on the city’s hospitality sector.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"They are currently facing significant and well-documented challenges, with the late-night levy seen as an outdated anomaly that no longer reflects Newcastle’s late-night economy."
NE1, which represents 1,400 city-centre businesses - more than 30 per cent of which are in hospitality - Hospitality businesses raised concerns about the levy nearly a year ago.
They argued it placed undue financial pressure on a sector already under strain and threatened the survival of many venues.
The organisation worked with Newcastle City Council, Northumbria Police and licensees to review the levy through joint forums and open discussions.
This contributed to the council’s decision to abolish the levy with immediate effect at a full council meeting on Wednesday, October 7.
Mr Patterson said the decision "provides some financial relief for the sector, which still faces challenging times," and praised the collaboration between the council, police, licensees, and NE1.
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."
Cllr Ferguson said the repeal reflects the "wishes of the trade and public expressed during extensive consultations" and gives businesses "some breathing room".
He stressed that "our commitment to safety in the night time economy remains as firm as ever" and that the council will continue to support "the incredible hospitality offer Newcastle is famed for".
Jack Taylor, chair of Pubwatch and owner of Cosy Joes, described the decision as "a great decision by Newcastle City Council," and thanked NE1 for its role in the campaign.
He said: "The conditions under which the levy was introduced differ significantly from the trading environment we currently find ourselves in."
Zafer Saygilier, CEO of Sayturk Group, also welcomed the move.
He 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."
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"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," he added.
Newcastle was the only city outside London to apply a Late-Night Levy in this way for operators trading after midnight.
The decision is seen as part of a wider effort to support and grow the city’s hospitality sector amid ongoing economic pressures.