Issue details

Pavement Licences were initially introduced under the Business and Planning Act 2020. The Act provided a streamlined and cheaper route for businesses such as cafes, restaurants, and bars to secure a licence to place furniture on the highway during the Covid period.
The Levelling Up and Regeneration Act 2023 makes permanent the pavement licensing regime under the Business and Planning Act 2020, with several changes that commenced on 31st March 2024. The Levelling Up and Regeneration Act introduces a standard fee cap for both new and renewals of licences as well as increased consultation and determination periods, lengthens the maximum duration of licences and provides local authorities with new powers to remove unlicenced furniture.
The statutory guidance states that the fees will be set locally, and it is for the licensing authority to determine the appropriate charge. Fees are capped at a maximum of £500 for first time applications and £350 for renewals.
Locally set fees are a vital means of ensuring both that full costs can be recovered by us, reducing the risk of a subsidy from local taxpayers, and that businesses do not pay more than they should. The Provision of Services Regulations 2009 have important implications for licence fee setting, and there have been legal challenges to licensing fees based on the Regulations in the past.
The fee setting exercise undertaken in Bath and North East Somerset Council in 2023 for the 23/24 financial year calculated the actual cost of processing a license application to be £267. These are reviewed on an annual basis.
The change to the charges as set out within this ODD will be updated and reflected within the Place Management Fees and Charges schedule for 2024/25 in line with the delegated authority to the Director of Place Management, in consultation with the appropriate Cabinet Portfolio Holder as agreed within the Councils Budget report (E3500) at annex 11, approved at full Council on the 20th February 2024.