London Councils has announced concern that Londoners may be left picking up the tab for shortcomings in the licensing laws.

Under the current system, fees charged by local authorities to cover the costs involved in issuing and enforcing licences to bars, pubs, clubs and other entertainment venues should be sufficient.

However, the recent Elton Report found that the fees structure often leaves councils short. In addition, seven of the eight authorities facing the biggest deficits are based London.

Consequently, Sir Elton has recommended that licensing fees should cover all licensing costs, and that London boroughs should receive more government funding to cover the greater costs involved in dealing with a higher number of licences and the additional cost of ensuring all venues adhere to the conditions.

London Councils has written to Tessa Jowell, secretary of state for culture media and sport, to discuss its concern that, unless action is taken to amend the laws, London boroughs will be forced to cut back on other areas of public spending in order to fulfil their licensing obligations.

It will also recommend that licence fees should relate to the main use of a building, not just its rateable value, to help remove problems faced by venues such as the British Library, which pays the largest licensing fee in the country owing to its enormity.

London Councils will also suggest that costs should be higher for venues open after 11pm and those that sell alcohol as their main business or host live music.

Businesses could also be categorised as small, medium or large according to the size of their public areas. Details: www.londoncouncils.com