In the beginning of August 2024, Barnab has written to the Home Office, The Rt Hon Jonathan Reynolds MP, Secretary of State for Business and Trade, Gareth Thomas MP, the Parliamentary Under-Secretary of State for Services, Small Business and Exports, the House of Commons Business and Trade Select Committee, and called on the government to review the exorbitant fees charged by local newspapers for advertising premises licence applications.
It is apparent that local newspapers are exploiting applicants, taking advantage of their legal obligation to place such advertisements. These fees pose a significant financial barrier to many small businesses and individuals who are attempting to start their own business and include alcohol sales as part of their offerings. Around 81% of alcohol retailers are small firms (with fewer than 50 employees). The vast majority of these have fewer than 20 employees (74% of the sector).
The UK hospitality sector is already grappling with high business costs, and the excessive fees for newspaper advertisements exacerbate this issue. The businesses we work with—cafes, restaurants, takeaways, new pubs, and bars—frequently express their shock and frustration over these high costs. There is no economic justification for the current level of prices for placing a tiny notice in a newspaper — these high prices pose a significant barrier and a financial strain for SMEs which intend to apply for a premises licence.
Therefore, we called on the UK government to remove the obligation to advertise in the newspaper included in the Licensing Act 20003. Assuming that the average cost of the newspaper advertisement is £350-£450, the total estimated annual savings for the business would be £6.3m-£8.2m.