Expert Insights
NEWS FROM
The old expression about London buses has unhelpfully reared its head recently. You know the one about waiting for ages then a pair of them come along at the same time?
The world of cinema seems to provide numerous examples of that pronouncement. You wait forever for a film about giant comets then Armageddon and Deep Impact come along in the space of three months. Or you look for an animated romp about insects and Antz and A Bug’s Life rock up almost alongside each other. Early 1997 was a golden age for volcanologists, with Dante’s Peak and Volcano bothering cinema screens at roughly the same time. Unfortunately for us, that old pest the late-night levy, of which we hoped we had heard the last, has made an unwelcome reappearance in not one, but two, London Boroughs; adding credence to the old saying in the most infuriating way.
In February, the boroughs of Southwark and Redbridge both announced they intend to consult on the possible introduction of the tax in their areas, the news of both coming to light within the space of 24 hours. This is obviously unhelpful and unwelcome news, but it is even more disappointing if one considers that there was reason to hope we’d heard the last of the levy.
Last year, the House of Lords Select Committee reviewing the Licensing Act 2003 delivered a damning criticism of the levy. It stated that it was not effective in tackling issues around the late-night economy, had failed to achieve its objectives and should be abolished. The report
6 March 2019
also noted that businesses such as late-night takeaways and fast food shops could contribute to crime and disorder, yet do not need to pay the levy. Such a serious criticism of the measure, one would hope, would hasten its downfall, yet a year on, we are staring down the barrel of a pair of potential levies.
You do not need me to tell you that the late-night levy is an ineffective, potentially disastrous, blunt tool that has the potential to ruin the late-night offering in town and city centres, while completely failing to address any perceived problems. Unfortunately for those of us trying to promote hospitality, despite scrutiny by Parliament and a weight of evidence against it, the levy still exists as an option for local authorities. Southwark and Redbridge Councils have decided that they wish to push ahead with a potential levy, despite the likelihood it will not address alcohol-related harms in their boroughs. There is no guarantee that the money raised will even be spent by the Metropolitan Police in the areas in which the businesses are forced to pay. Only last month, the Night Time Commission published a report outlining advice for local authorities to develop their night-time offerings. The report advises avoiding the levy and recommends partnership work. It is a shame to see two councils ignore advice and consider a retrograde tax.
www.venue-insight.com
Kate Nicholls UKHospitality Chief Executive
Minimum wage regulations must be clear and flexible
UKHospitality has welcomed Government measures to introduce more flexibility to the National Minimum Wage regulations but has warned that guidance to industry must be clearer to ensure businesses remain compliant.
UKHospitality has responded to the Government’s consultation on salaried workers and salary sacrifice schemes expressing support for the regulations but outlining the need for business support.
The submission identified examples where businesses had unwittingly been non-compliant due to lack of clarity in the regulations.
UKHospitality Chief Executive Kate Nicholls said: “We are fully supportive of National Minimum Wage regulations and efforts to ensure that hardworking team members are rewarded fairly for their work by all employers. Any businesses paying below the minimum wage rates should be punished and we fully support the recent crackdown on genuine underpayment.
“There does, however, need to be additional clarity and flexibility around the regulations. We have some significant concerns about the current interpretation and clarity of the regulations and worry that some businesses believe they are complying when they are not.
“Recently, we have seen some of our members punished because HMRC compliance officers appear to be making up the rules as they go along. Businesses have ensured that they comply with the rules and then the goalposts move again. This makes it increasingly difficult for businesses to keep on top of the constantly-changing rules and they find themselves being caught out despite their best efforts.
“The Government needs to work with industry to provide enhanced guidance as soon as possible to ensure the rules are clear and businesses aren’t tripped up by random interpretation.”
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