The decision to set sex establishment fees and charges was delegated by Council on 19th February 2018 to the Head of Law and Governance and Head of Financial Services.

The power to charge a licence fee is contained within Schedule 3 to the Local Government (Miscellaneous Provisions) Act 1982. Paragraph 19 provides that:

“An applicant for the grant, renewal, variation or transfer of licence under this Schedule shall pay a reasonable fee determined by the appropriate authority”.

Whilst the term ‘reasonable’ is not defined, case law suggests the following general principles should be applied:

(a) It is not wrong for the Council to be guided by a policy that the council tax payers should be relieved of the burden of paying the costs of administration and enforcement of the licensing of sex establishments, but it must not exceed those costs;

(b) In applying the above principle, it is acceptable for the authority to carry deficits over from one year in calculating the fee(s) for the next; and

(c) The Council must not use licence fees as a way to raise revenue.

The General Licensing Manager and Finance Officers recalculated the fees based on administration and compliance activities associated with the Sexual Entertainment Venues, Sex Shops and Sex Cinemas.

The decision was to agree the recommended fees as follows:

Sex Shop Annual Fee for a Grant and Renewal Licence: £2,508

Sex Entertainment and Sex Cinema Annual Fee: £5,880