The legal basis for the overcharging stemmed from the council's mistaken assumption that it owned the pavements on Marine Parade. Dorset Council has since clarified that Marine Parade is a public highway, meaning it is covered by national caps for pavement licenses. Marine Parade is publicly accessible, listed as a highway in the National Street Gazetteer, and subject to a Public Spaces Protection Order. Larry Gibbons, owner of Largigi Cafe, noted that the council's claim of ownership did not stand up to scrutiny.
The financial impact on businesses was significant, with shops along Marine Parade billed up to £4,500 a year for outdoor seating licenses. Larry Gibbons was forced to pay up to £4,500 each year for seven outside tables and 30 chairs since 2009, and businesses were charged £600 per table for outdoor seating over a period of years. This far exceeded the national cap of £500 for new pavement licenses and £350 for renewals, leaving many establishments with substantial overpayments.
The businesses owed smaller amounts have been paid and I am delighted for them, but my claim seems to be more complicated.
Businesses' repeated complaints and challenges to the town council were ignored, according to multiple reports. Larry Gibbons is still waiting for a refund of over £50,000, and the council asked him for bank statements dating back 15 years to process his refund. Gibbons described his claim as more complicated than others, noting that businesses owed smaller amounts have been paid.
Administrative confusion compounded the issue, as pavement license fees are payable to Dorset Council, not Lyme Regis Town Council. The council entered into an agreement with the predecessor of Dorset Council in 2011 regarding the charges, but it recently realized it did not have the power to levy them. Town clerk John Wright described the situation as embarrassing, explaining that the council thought it had the power to levy charges and entered into an agreement in 2011, but it has come to light recently that they lack those powers.
I believe the refund for the chairs and tables alone should be in the fifties of thousands, but the council expect me to go through all my bank statements over the period.
A partial resolution has been reached, with some backdated claims for the 11 affected eateries paid from the council's reserve funds. However, the total amount owed to all businesses remains unclear, and specific hurdles for larger claims like Gibbons' are still being addressed. John Wright described the council as trying to remedy the error as quickly as possible, acknowledging they put their hands up to it.
The overcharging occurred during a time when the hospitality trade was struggling with increased costs, adding financial strain to local businesses. This context highlights the broader impact of the error on an industry already facing challenges.
Surely they know how much I have paid them over the years.
Implications and unknowns persist, including what specific legal or regulatory oversight allowed the overcharging to continue for 14 years without correction. The total money owed to all 11 affected eateries and the breakdown per business have not been disclosed, and it is unclear what steps Dorset Council is taking to ensure similar errors do not occur in other towns or with other councils. Why Larry Gibbons' refund claim is considered more complicated than others, and what specific hurdles he faces, remain unanswered, as do any consequences Lyme Regis Town Council might face for the overcharging, such as penalties or accountability measures.
Every other council appears to be adhering to the law, including Westminster City Council.
Lyme Regis council didn't feel the law applied to them.
The sole justification offered by the council was their claim of ownership of Marine Parade.
However, this argument did not stand up to scrutiny.
Marine Parade is publicly accessible, is listed as a highway in the National Street Gazetteer and is subject to a Public Spaces Protection Order across its full extent.
This is irrefutable evidence that it is a public space.