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Banned! York bar refuses to serve city councillors over ‘stealth tax’

Labour city councillors have been banned from a York bar.

Steve Wood, owner of Plonkers Wine Bar on Cumberland Street, said the ban is over fees for outdoor seating.

He says yearly £350 pavement licence renewal charges, plus admin costs, come on top of tax hikes and other financial pressures.

Mr Wood hopes the ban would encourage councillors to issue licences for two years rather than one, in line with government guidance.

But Cllr Rachel Melly, Labour’s licensing committee chair, said the authority could not afford to change the system which already costs more to run than the money it brings in.

Plonkers. Photograph: Supplied

“Its small independent businesses like Plonkers that make York what it is, which is why we’re making a stand,” Mr Wood said.

“My business rates and National Insurance costs are already going up, my numbers are down by about seven per cent year-on-year.

“I’m lucky because I own the building, but if I had to pay commercial rent my business wouldn’t be viable.

“Pavement licences are one of these small things we’re being hit with on top of everything else and the council can do something about them.

“The grown-ups in the government say councils should issue licences for two years.

Cllr Rachel Melly. Photograph: York Labour

“But they’re doing nothing to support small businesses in York, they’re not interested, it’s lazy, incompetent and unimaginative and it’s just about generating revenue.

“This isn’t about party politics, Plonkers has been around for four decades but we could be finished in a couple of years if something isn’t done.

“This is effectively a stealth tax that the council is putting on businesses every year, are you telling me there’s no better way?”

Mr Wood said the council could not do anything about business rate and National Insurance hikes but it did have control over pavement licence costs.

He added his staff would be told to ask Labour councillors to leave until the council’s policy changes.

In response, Cllr Melly said the owner misunderstood how policy decisions were made.

She says the council is currently subsidising the cost of pavement licences which were ultimately being covered by local taxpayers.

Cllr Melly said: “Policy decisions are made by the non-party political licensing committee, while fees and licence durations are reviewed annually and approved as part of the council’s budget setting meeting every February.

“As a low-funded council, we cannot afford to increase this subsidy.

“The council made the decision to renew pavement café licenses annually for the main reason that it allows for frequent reviews of how public space is being used and to ensure key routes remain clear and accessible.

“We felt the decision struck the right balance between supporting businesses to expand their capacity into the pavement, while ensuring that the layout of furniture doesn’t hinder the public’s ability to move around freely.”