The Licensing Act 2003 (Consequential Amendment)(Non-Domestic Rating)(Public Houses in England) Order 2007

EXPLANATORY NOTE

(This note is not part of the Order)

This Order modifies the consequential amendments to the Non-Domestic Rating (Public Houses and Petrol Filling Stations)(England) Order 2001 (S.I. 2001/1345) (“the 2001 Order”) made by the Licensing Act 2003 (Consequential Amendment)(Non-Domestic Rating)(Public Houses in England) Order 2006 (S.I. 2006/591) (“the 2006 Order”). The original consequential amendments were made 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 afforded 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 a formula different to the one set out in subsection (4) of section 43, provided they satisfy the prescribed conditions.

The 2001 Order originally defined a “public house” by reference to the Licensing Act 1964, which Act was repealed by the 2003 Act. The 2006 Order modified this, and related definitions, to remove references to the 1964 Act. This Order substitutes a new definition of “public house” and revokes the definition of “relevant public house” inserted by the 2006 Order in order to ensure that the provisions will continue to reflect the manner in which the 2003 Act operates in practice. The new provisions will have effect for financial years beginning on or after 1^st April 2007.

In summary, the new definition of “public house” will include any premises as defined in the 2003 Act which has a premises licence authorising the sale by retail of alcohol for consumption on the premises. In addition, the premises must be used principally for retail sales of alcohol to members of the public for consumption on the premises, and the sales must not be subject to the condition that buyers reside at or consume food on the premises.