Councils face a £54m bill to clear the £97m funding deficit, resulting from the introduction of the Licensing Act 2003, the Elton review has revealed. The independent licensing fees review panel, chaired by Sir Les Elton, found councils will have ‘spent more than they received' in licensing fees, and fee-payers incurred ‘higher costs than anticipated'. It recommends the Government pays £43m of the shortfall, but adds that the remaining £54m loss is due to decisions by local authorities, so they should foot the bill. The review also recommends fees increase by 7%. Chair of the Local Government Association Lord Bruce-Lockhart, criticised the review's failure to mention the pressures councils were under to implement the changes in the licensing law. He also urged the Government to cover the financial black hole councils were facing. ‘Councils have pressed ministers at every possible opportunity to fulfil their pledge that the new licensing regime would not leave council taxpayers out of pocket,' he said. ‘The bottom line is the Government must make good its pledge that it would meet the full costs to local government of the Licensing Act.'
