The British Hospitality Association is to call for small hospitality businesses to pay lower fees for their licences. The BHA says that small hotels and restaurants with a high rateable value but relatively low alcohol sales will pay more in licence fees than they make in profit from selling alcohol. Bob Cotton, BHA chief executive, said: "This is basically inequitable. Even a small guesthouse with very low alcohol sales but with a rateable value of between £33,000 and £87,000 (equal to turnover of between £300,000 and £800,000 approximately) will have to pay £315 to convert its licence and an annual fee of £295." This means that smaller establishments, some of which may not even have a bar and only provide a drink with meals, may not even make enough profit in a year from alcohol to pay for the licence. The BHA is proposing that these businesses pay a specially reduced fee, or are placed into the lowest fee category. The BHA fears that as a result of the high fees some businesses may decide not to renew their alcohol licence. Cotton said: "The result is that this restricts choice and leads to customer irritation." "Far from being a simple and inexpensive process, the new Licensing Act has led to more rules and regulations, greater complications and much higher costs than the previous regime."