'Paying more for pavement seating has a big impact on our cafés'

Daniela Genova from Café Lago Di Como said businesses would struggle to pay

The rise in fees for pavement seating licences for pubs and cafes will have a "significant impact" on the hospitality sector, business owners have warned.

Previously, licences cost up to £100 but from August onwards, North Yorkshire Council has trebled fees to £400 for new applicants and £305 for renewals.

Councillor Richard Foster, executive member for managing the environment, said the increase represented "good value for ongoing use of council-owned outdoor space".

However according to Daniela Genova, co-owner of Café Lago Di Como in Harrogate, the move has added pressure at a time when businesses are already feeling the squeeze.

"I think it's going to get harder with everything else increasing. The business rates, the licence outside, the food that's coming in, water, electricity - everything is increasing," she said.

"I think it's going to affect businesses badly - not just us, but everyone around us. I know many businesses will struggle."

Jules Green, owner of Café Di Lucca in Knaresborough said that her venue's indoor space alone wouldn't be enough to keep the business afloat.

"We just wouldn't be here, like several other people in Knaresborough town centre who've had to close due to difficulties in income.

"People would prefer to sit in an outside area than inside in the summer. But if you've got no seats, you've got no business."

Jules Green, owner of Café Di Lucca said it was "a lot of money to have to find"

A report by council officers said the increase was needed to ensure the cost of issuing the licences was covered.

It detailed how prior to the local government reorganisation in North Yorkshire in 2023, the seven district authorities operated different pavement licensing regimes, accounting for a difference in price between areas.

Foster said that the scheme was initially introduced during the Covid-19 pandemic, to allow social distancing and meeting up outdoors.

"Government initially capped licence fees at £100 and council taxpayers have been subsidising the actual costs of administration and ongoing monitoring since then," he said.

"The new cap set by government is £500 for an initial application and £350 for a renewal.

"Therefore, our fees of £400 and £305 represent good value for ongoing use of council-owned outdoor space for two years."

Harry Headford, finance director of North Bar, with venues in Harrogate, Leeds and Otley, said that businesses as whole were being "hit on so many different fronts".

"It's going to affect us quite significantly, mainly due to the fact we've had so many increases already with the rates relief being reduced, along with national insurance increases," he said.

The outdoor seating area at North Bar in Harrogate

He added that if rates had to increase, a phased approach and incremental increase would have been preferable.

"There's not really felt like there's been much input from the council asking businesses how it's going to affect them, so to just be hit with it is difficult.

"It doesn't feel like it's been massively thought out. We have our licence in place but for new businesses it's not going to be easy for them to afford that along with everything else."

Foster said that council was supporting businesses in "many ways" including offering a fully funded food hygiene course to catering businesses in conjunction with the combined authority.

He added that businesses were free to use their own land, if they have it, without the need for a pavement licence.

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