The Licensing Act 2003 (Consequential Amendment)(Non-Domestic Rating)(Public Houses in England) Order 2006

Explanatory Note

(This note is not part of the Order)

This Order makes consequential amendments to the Non-Domestic Rating (Public Houses and Petrol Filling Stations)(England) Order 2001 (S.I. 2001/1345) (“the 2001 Order”) to take account of the commencement of the Licensing Act 2003 (“the 2003 Act”).

Article 2 of the 2001 Order prescribes conditions that public houses and petrol filling stations must meet in order to qualify for the relief from non-domestic rates established by section 43(6A) and (6B) of the Local Government Finance Act 1988 (c. 41). Qualifying premises are entitled to have their rate liability determined by reference to an alternative formula to that set out in subsection (4) of section 43, provided they satisfy the prescribed conditions.

The 2001 Order defines a “public house” by reference to the Licensing Act 1964, which Act was repealed by the 2003 Act.

This Order amends the 2001 Order so that “public house” will in future be defined by reference to the 2003 Act rather than the 1964 Act. This requires an approach based on particular descriptions of licence conditions, rather than the particular kinds of licences defined in the 1964 Act. In summary, the new definition of “public house” is intended to include any premises in respect of which there is in force a premises licence under the 2003 Act authorising the retail sale of alcohol for consumption on the premises, or for consumption both on and off the premises. It excludes cases where the licence contains conditions restricting alcohol sales to customers in premises being used as a restaurant, hotel or boarding house. This reproduces the relevant elements of the definition of a “Part IV licence” under the 1964 Act, and so preserves the position under the 2001 order in so far as it is possible to do so.

The Order also contains a transitional provision to the effect that any premises which were a “public house” under the old definition but not the new will continue to be regarded as a “public house” for the purposes of the 2001 order until 1st April 2007.