21.07.17
Council wins ‘landmark’ Supreme Court battle to recoup £1.3m licensing costs
A London council has this week celebrated a landmark judgement which could see it recover up to £1.3m in regulatory and enforcement costs.
Westminster City Council has been embroiled in a lengthy legal battle with Simply Pleasures Ltd over licensing fees paid to operate a sex shop in the area.
The company had argued that the costs for paying for licensing and enforcement charges, which relate to the running costs of its establishments, should fall on the head of the council. But now the Supreme Court has overturned a decision by the Court of Appeal.
The council will now be given repayments of £1.3m, and a further ruling over the return of these repayments is expected soon.
Westminster Council said that the result of the case will affect council and other licence fee charging bodies across the UK in allowing them to recoup costs for regulatory and enforcement costs instead of just administration costs, and could see other authorities enter similar legal cases.
Cllr Antonia Cox, the authority’s cabinet member for Public Protection and Licensing, stated that “common sense” had been restored, meaning that council tax and business rate payers did not have to bear the burden of paying for licensing and enforcement charges which relate to the running costs of these establishments.
“Sex shop operators must now return to the process of paying their licence fees for the costs incurred to the council in undertaking regulatory and enforcement activity,” she said. “The Supreme Court has confirmed its original decision to overturn the Court of Appeal ruling on this case in our favour and this matter has now been returned to the High Court to make a ruling on costs.”
The importance of this case for the country as a whole cannot be underestimated, added Cllr Cox: “We have been determined to fight this battle, not only on behalf of our residents and businesses, but for all licensing authorities across the country.”
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