Liberal Democrats "New licensing laws are hitting small businesses"

12.00.00am BST (GMT +0100) Wed 27th Jul 2005

Stringent new licensing regulations brought in by the government are putting the viability of community corner shops in Merthyr at risk.

Businesses wishing to sell alcohol have until the 6th of August to apply for a new license. However, only 74 out of a possible 190 premises throughout the borough have so far submitted their forms. Increased red-tape and higher licensing charges have been blamed for the low numbers of applications received by Merthyr Council.

Michael German, AM for South Wales East, said: "The Government has introduced a system that is overly-bureaucratic and imposes disproportionate costs on small businesses. In contrast to pubs and clubs, which make most of their profits from the sale of alcohol, grocery shops only sell limited amounts of alcohol, yet they have to pay the same amount in licensing fees."

Local campaigner Ceirion Rees commented: "The new licensing procedure is much more complicated than the old one. Shop keepers need to provide scale drawings of their premises, in addition to completing the 20-page application form. In some cases the council is having to return forms as they have not been correctly completed."

Local shop keepers are being hit by the new licensing laws

The cost of the license has increased from £35 for three years to £191, £100 of which is now payable every year.