THE city's smallest pubs could be hit with huge bills if proposed changes to licence fees are introduced by the Government.
Plans to change the annual fees for pubs, bars and nightclubs have been criticised by industry experts in Derby, as well as trade representatives and the operator of Derby's smallest pub.
The British Beer and Pub Association argues that, under Government proposals, some establishments could see their annual fees rise tenfold.
Licensing law expert Andrew Cochrane, of law firm Flint Bishop, says it will create problems for many operators of licensed premises.
And Walter Scott, landlord of the Little Chester Ale House, in Chester Green, said that it would put a strain on his finances and make it difficult to expand the business.
If the Home Office proposals are adopted, small pubs, most of whom pay £100 per year, could see their annual fees rise by 957%, according to figures from the British Beer and Pub Association.
Mr Scott has predicted a lot of anger over the issue.
He said: "The Government say that they're doing well by taking a penny off a pint and then talk about introducing this, which is just another tax.
"There will be a lot of resistance to it and I can't see the large breweries rolling over."
The majority of venues could see fees quadruple if local authorities impose maximum charges, with costs rising from £180 to as much as £740.
A Government consultation on the changes closed this week.