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30
Jul
‘Tin-eared and ill thought out’: local businesses react to pavement licence fee hike
Local businesses have hit out at North Yorkshire Council after plans to more than triple the cost of a pavement licence were approved this week.
Council officers backed plans to increase the price of pavement licences across the county in a bid to “harmonise” its licensing system.
Pubs, cafés and restaurants are currently charged between £0 and £100 to put outdoor seating on a pavement.
But some businesses will be left to foot a huge bill as part of the move, which comes into play on Friday (August 1), as the cost of a new licence will jump to £400 and £305 for a renewal.
The existing fee was set to help businesses after the pandemic, but a council report said this does not cover the authority’s cost of issuing licences.
However, the decision has proved unpopular with local hospitality businesses — some of which have critcised the decision.
Hoxton North, a coffee shop on Harrogate's Royal Parade with outdoor seating, told the Stray Ferret the cost to renew its pavement licence will jump from £53 to £305 — a 475% increase — as part of the changes.
Restaurant manager, Sarah, criticised the council, telling the Stray Ferret the move feels “very unsupportive” of independent businesses:
We would like to know exactly how can the council justify this? With the increase in the cost of everything from produce to national living wage, it feels like a very unsupportive move towards small, independent local businesses.
We feel we add value to our little neighbourhood community here on Royal Parade. But it’s becoming increasingly challenging to make a living/pay staff. We are not a “big business”. We are a community business. This move makes us feel like the council is working against small, independent businesses which are important for the vibrancy of the high street and local community we serve. It’s sad that the approach is not more collaborative or supportive.
Tara Stagman, finance director at Ake and Humphris wine merchants on Leeds Road, said although the site will not be impacted by the move, as its outdoor seating area is sited on private land, the council must “avoid adding further obstacles” for hospitality businesses.
I’m saddened to hear of the council’s planned increase in the price of a pavement licence fee here in Harrogate, as I feel hospitality businesses are struggling enough in the current economic climate and already reeling from the significant changes to minimum wages and national insurance.
If the council wish to see a varied and interesting hospitality offering, drawing in visitors and investors to the area, they need to avoid adding further obstacles to those who are trying to provide these services.
Jay Smith, owner of Montey's.
‘When does it stop?’
The owner of Montey’s, which has been a permanent fixture on The Ginnel in Harrogate for nearly 30 years, described the move as a “tin-eared, ill-thought-out proposal”.
Although Montey’s will not be affected by the move as the seating area is on private land, Jay Smith, who recently set up a collective to support local hospitality businesses, echoed the concerns of other local business owners.
He said:
We constantly hear about the pressures councils face on their finances, but rarely do we hear any real acknowledgement of the pressures facing the businesses that fund them.
Even with current rate relief, many hospitality venues are paying more in business rates than they are in rent. It begs the question: when does it stop? Why does it feel like the council is actively working against our success? Where is the support, rather than what so often feels like obstruction?
Business groups react
Martin Mann, chief executive of Harrogate District Chamber of Commerce, said the move could pose a risk to Harrogate's footfall.
Combined with an overhaul of parking systems, Mr Mann feels the price increase could force businesses to bump up their own prices and drive tourists out of the town.
He told the Stray Ferret:
We fully appreciate the financial pressures facing North Yorkshire Council, especially in light of the National Insurance increase and the loss of the £14.2 million rural services delivery grant from central government. However, this new tax on hospitality businesses across North Yorkshire will place an undue burden on many local operators.
An additional £400 per year for those without outdoor space unfairly penalises certain businesses. Combined with the recent removal of pay-on-exit parking, which discourages visitors who are unwilling or unable to download the app, this measure risks driving footfall away from Harrogate. Businesses may be forced to raise prices, pushing visitors toward towns like Northallerton or Thirsk, which offer some town-centre free parking and are more accessible.
These changes could have a lasting negative impact on the vitality of our local economy.
Meanwhile, Kelly Teggin, of Knaresborough Chamber and owner of Kelly Teggin Hair and Beauty in Knaresborough, added:
Knaresborough’s café culture is an important part of the ethos and character of the town and should be encouraged.
If the purpose behind the increased rates is to reinvest in street furniture or similar, it has the potential to encourage this part of the local economy, but if it’s simply about filling the council’s coffers then that’s another story.
We’re not aware of any consultation or local engagement in the council’s proposals or whether others in the town, such as the town council, have been consulted but local investment at least equal to any increased pavement license fees is a must for us.
In a council report published this week, Gareth Bentley, head of licensing at North Yorkshire Council, said:
Prior to local government reorganisation in North Yorkshire, the seven district licensing authorities operated different pavement licensing regimes, the cost of which was recovered from permit holders in accordance with district authority calculations.
Some did not charge a fee at all. The different area fees for pavement licensing remain.
Now, North Yorkshire has one licensing team, it is important to harmonise the pavement licence fee throughout the council area.
Mr Bentley added that the increase is needed to ensure the authority covers the cost of issuing the licences.
He said:
It is essential to a well-functioning licensing service that those administering and enforcing the regime are well-resourced. Licensing authorities are expected to regularly review their fees to reflect changes to costs.
Meanwhile, Cllr Richard Foster, executive councillor for managing our environment at the council, said:
The pavement licensing scheme came about during the Covid-19 pandemic, to allow social distancing and meeting up outdoors.
Government initially capped licence fees at £100 and council taxpayers have been subsidising the actual costs of administration and ongoing monitoring since then.
The new cap set by Government is £500 for an initial application and £350 for a renewal. Therefore, our fees of £400 and £305 represent good value for ongoing use of council-owned outdoor space for two years.
Businesses are free to use their own land, if they have it, without the need of a pavement licence.
We are also continuing to support businesses in many ways, including the offer of a fully funded food hygiene course to catering businesses in conjunction with the combined authority.
The new fees are set to be introduced on August 1, with the council able to issue licences for up to two years.
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