The cost of selling booze from a chain of 50 stores could rocket from £1,500 to between £8,00 and £47,500 over three years under government plans to revamp the alcohol licensing system in England and Wales.

Under the proposed fee structure for the new licensing Act, retailers that previously paid £30 for a three-year drinks licence will have to pay between £160 and £950. This will comprise of a one-off fee of £80-£500 in year one depending on the rateable value of he business and an annual fee of £40=£225 thereafter.

Under he new system, the cost of licensing Aimes’ three convenience stores in Clacton for three years will go up from £90 to £1,200.

Director Deepak Patel said: “It’s just ridiculous and it comes straight off your bottom line.”

Multiply the new fees by the 46,600 premises in England and Wales that hold one-off licenses and the total bill for retailers could be between £7.5m and £44.3m.

The new system might be simpler and cheaper for pubs and clubs, which no longer have to apply for separate licences for entertainment, extended opening hours and other activities, but represented a massive cost increase for the average retailer, said Association of Convenience Stores ceo David Rae. “When the government describes the cost-saving benefits, they refer to nightclubs and theatres that undertake more than one licensing function.”

For further details read The Grocer dated November 13, 2004.