Portsmouth Costcutter faces losing alcohol licence over illegal worker claims

A Portsmouth Costcutter faces losing its alcohol licence after the Home Office accused its operators of employing an illegal worker and failing required checks.

Portsmouth City Council’s licensing committee will consider an application to review the premises licence for Costcutter, at 2-4 Outram Road, on Tuesday, July 7.

The Home Office has asked the committee to revoke the licence.

The committee report states that officers visited the shop on 6 August 2025, where they encountered an individual who was working illegally.

Following the visit, the business was issued with a £45,000 civil penalty for employing a person who had “no right to work in the UK”.

According to the review application, the penalty was issued on October 7 last year and was due to be paid by December 10. The Home Office says no payment has been received and the penalty remains unpaid.

Officers said the worker was the only person in the shop when they arrived and was seen serving customers while carrying what appeared to be the premises keys.

During an interview, the individual reportedly admitted working at the shop for around six months after approaching the business for work. He is said to have told officers that responsibility for his employment later transferred to director Kumarasamy Uthayatharan, who directed his “working hours and daily tasks”.

The Home Office said the worker was paid a flat rate of £100 per week in cash, regardless of the number of hours worked.

It also claims the employer admitted no right-to-work checks had been carried out because he was unaware the worker did not have permission to work in the UK.

The review application states officers observed the employer appeared “nervous” and “laughed nervously” when asked difficult questions.

The Home Office argues the licence holder “permitted illegal working”, failed to carry out mandatory checks and allowed “an untrained individual with no lawful status” to take responsibility for the premises.

Representations supporting the review have also been submitted by Hampshire police and the council’s licensing manager.

The licensing committee will decide whether to revoke the licence, modify its conditions, suspend it or take no action following the hearing.