The Government's new licensing act has changed the way bars and clubs apply for a drinks licence, and that could be disastrous for small sports and social clubs in Essex, reports Piers Meyler.

Soaring fees for drinks licences could threaten the future of hundreds of Essex sports and social clubs.

The new Licensing Act changes the way pubs and clubs apply for permission to sell alcohol.

Instead of going to a magistrate to apply for a drinks licence, clubs must now apply to their local council.

And instead of paying a flat fee of £15 the clubs now face charges based on their rateable values.

These will range from £170 to a potential £985 in the first year, followed by an annual fee ranging from £70 to a potential £350 a year.

The Central Council for Physical Recreation, which represents about 4,000 clubs across Essex, fears the new charges, which came into force on February 7, will wipe out the small profits made at the bar - profits that are often essential to cover the costs of running the clubs.

Don Taylor, chairman of Falcon Bowling Club in Chelmsford, said: "The impact of higher licensing fees on this club may put our necessarily increased subscription beyond the financial capacity of some of our senior members."

The new rules are part of the Government's desire to see pubs, clubs and bars pay a greater share towards the cost of dealing with alcohol-related problems in towns and cities.

The Government argues that the previous system meant tax payers were left to pick up the bill for these problems. The new rules aim to make pubs and clubs bear a greater share of these costs.

But Dawn French, commercial services manager of Chelmsford Borough Council, said it was unfortunate that small social clubs would be adversely affected by the new fees - especially as some larger commercial premises may end up financially better off.

Paul Bohannan, secretary of Chelmsford Sports warned that clubs could see their members moving to other clubs if the social element was affected. That could be the death knell for some clubs, he said: "We must recognise that there are some clubs that are there for social sport."

Sarah Woolnough, policy officer at the Central Council for Physical Recreation, said: "The fees announced are 50 per cent higher than those proposed only two months ago. This shows a typical knee-jerk reaction to the concerns about problem drinking. But the effect is doubly likely to drive sports clubs out of business."

Perversely, some commercial venues are set to save hundreds of pounds.

Under the old system a commercial bar, which had capacity for between 501 to 1,000 people, had to pay £984 a year for a public entertainment licence.

Now, any bar with rateable value between £33,000 and £87,000 will have pay an initial fee of £610 and an annual fee of just £295 for a licence that will include public entertainment.

Ms French said: "It is unfortunate that the winners may have a greater ability to pay and the losers are the ones who do social good."

Writtle Bowling Club faces similar uncertainty. Club chairman, David Garrett, said it would be unfeasible to raise prices at the bar - there was not enough drunk to see small increases in bar prices cover the increase in cost.

Club members would therefore expect about three pounds to be added onto their present subscription of £70 for women and £75 for men.

However, Bob Ward, secretary of Witham Hockey Club was concerned that any increases would just put more financial pressure on its members.

He said: "Already each team has to pay about £2,000 per year."

Published Thursday February 24, 2005

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