Businesses could pay hundreds more for pavement licences in Portsmouth to bolster council coffers
Businesses could pay hundreds more for pavement licences to tackle a Portsmouth City Council budget deficit.
A pavement licence allows businesses to place furniture, stalls, umbrellas, barriers and heaters adjacent to their premises. In 2020 the price was capped at £100 under new legislation introduced during the pandemic to stimulate economic growth – the council decided to halve the fee. The Levelling Up and Regeneration Act 2023 made the new “pavement licensing regime” permanent with changes that include raising the caps to £500 for new applications and £350 for renewals.
Now the council are raising the fees to the maximum amount to address a deficit within their licensing budget. Pavement licences were originally granted under the Highways Act 1980, the fees for which varied between councils.
A report, which councillors will discuss on July 8, says the introduction of the £100 price cap has seen a deficit “within the licensing budget” due to applications shifting away from a more lucrative process.
In the 2023/24 financial year, there was a deficit of £3,500 against the budget estimate of £18,000. The deficit “will continue to increase exponentially” with new “legislative requirements as opposed to the Highways Act 1980,” the report states.
The report also notes that fees will be reviewed annually by the licensing committee and “if necessary can be reduced if income exceeds expenditure”.
Applications involve a 14-day public consultation period starting the day after it’s submitted. If the council fails to decide within 14 days after this period, the licence is automatically granted for two years. The authority can determine the duration of the licence, with a minimum period of three months. It is generally expected that local authorities will issue licences for 12 months, unless there are valid reasons to grant a shorter duration, like changes in the use of roads.
Businesses found placing furniture on highways without a valid licence may receive a notice to remove it. Failure to comply could result in the council removing and storing the furniture, with the business left to bear the cost.
If these costs remain unpaid after three months, the council may dispose of the furniture and keep any proceeds.