The second part of the controversial mandatory alcohol retailing code is set to be scrapped — but the pay-off will be the new late-night levy, the Morning Advertiser understands.

The next part of the code, to come into force on 1 October, requires pubs to offer drinks in smaller servings and ask anyone who appears underage for ID.

The coalition Government is understood to view the code as an easy win for its “one in, one out” approach to regulations.

And it has asked the trade for its views on the necessity of the code as part of its consultation on the Licensing Act review.

The scrapping of the code could save the on and off-trades an estimated £41.3m (£650 per pub). A source close to the process said: “There is a strong hint that the second part of the mandatory code will go.”

Article taken form the morning advertiser – Read more!