Late night club and bar owners in the city could face a new levy on their businesses to help pay for the cost of extra policing.

The charge is being proposed in the Police and Social Responsibilty Bill which is currently going through Parliament.

Included in its measures is the overhauling of the Licensing Act to give more powers to local authorities and police to tackle problem premises and areas.

It will also allow local authorities to charge more for licences to contribute towards the cost of policing the late-night economy.

They would be able to demand anything from £300 per annum to nearly £4,440, depending on the premises.

But the city council’s commercial health director, Roger Vick said it would be up to individual councils to decide whether to levy the charge.

Mr Vick, who sits on the Local Government Advisory Panel on Licensing, says the council would only keep 30 per cent of the fees to cover collection costs with the rest going to the police.

He explained: "The size of the levy would be based on a business’s existing licensing fee but its an optional one for local authorities. It may be more relevant in bigger cities with many more late night drinking venues.

"The other factor is that the money the police receives from it does not have to be ring-fenced to pay for additional late night policing."

But residents group SMACS, which has campaigned against many late night licenses in the city, welcomed the proposed extra tariff.

Chairman John Ellaby said: "We have long thought that late night premises place an additional burden on the police and it is entirely appropriate that they should pay extra.

"The fact is that the Licensing Act seems to have been drafted in favour of the night time economy industry but the Continental-style cafe culture it was said to encourage has not happened. Instead it has led to misery for lots of residents through noise and nuisance.

"This new bill seems to be damage limitiation to put some of it right."

The Bill is expected to be given Royal Assent later this year and come into force early in 2012.

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