Government plans to change the way licensing fees are calculated for pubs, bars and nightclubs by local councils could result in huge bills for small local pubs, the British Beer and Pub Association has warned.

Under the Home Office proposals, pubs in the lowest bands (A and B) could see rises in annual fees of 957 per cent and 311 per cent respectively, if local authorities charged their fees at the proposed new maximum caps.

BPA said most typical pubs in the current band B, currently paying £180 a year for a licence, could see the bill rise to £740. Also, other fees, such as those for Temporary Event Notices (TENs) and minor variations, would see steep rises.

Brigid Simmonds, BBPA chief executive, said: “The Government’s proposals could see massive rises in fees for pubs, simply to open their doors.

“While a cap on fees is right in principle, the proposed limits are far too high.”