Alcohol Late Night Levy Explained: Reforms and Your Business

The Late Night Levy is a charge on premises licensed to sell alcohol between midnight and 6 am in England and Wales. Implemented by local authorities, its primary purpose is to help fund policing costs for the late-night economy. At least 70% of the net revenue goes to the police, with the rest supporting local authority services that manage the night-time economy, such as reducing crime and public nuisance. Significant reforms introduced in July 2023 aimed to make the levy more flexible, including targeting specific areas, extending it to late-night refreshment outlets, and increasing transparency.

Key Takeaways:

• The Late Night Levy is applied by local authorities to businesses licensed to sell alcohol during a specific "late night supply period," typically between midnight and 6 am.
• Net revenue from the levy is split, with at least 70% going to the Police and Crime Commissioner (PCC) and up to 30% retained by the licensing authority for night-time economy management services like crime reduction and public safety.
• Key reforms came into force on 13 July 2023. These changes allow licensing authorities to target specific geographical locations, include late night refreshment outlets, enable PCCs to request a levy, and require publishing how funds are spent.
• Licensing authorities can offer a 30% reduction for premises in best practice schemes or those qualifying for small business rate relief.
• Specific types of premises, such as hotels with overnight accommodation, theatres, cinemas, and community pubs, can be considered for exemptions from the levy.
• The reforms followed concerns that the levy was "inflexible" and had not been widely adopted by local authorities.

Definitions and Concepts:

• Late Night Levy: A charge imposed by local authorities on premises licensed to sell alcohol during a specific "late night supply period" (midnight to 6 am).
• Licensing Authority: The local council or body responsible for granting alcohol licenses and implementing the late night levy in its area.

Source: Alcohol licensing: the late night levy
Research Briefing
Published Tuesday, 22 July, 2025

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