Liverpool v Kelly

Facts

Mr Kelly holds a hackney carriage licence in Liverpool. Under section 70 of the Local Government (Miscellaneous Provisions) Act 1976, a district council may charge fees for the grant of vehicle licences sufficient to cover the reasonable cost of inspecting hackney carriages and private hire vehicles, of providing hackney carriage stands, and of associated administration. Liverpool City Council operated a regime under which £30 was payable before and in respect of a first vehicle test, £25 before and in respect of each subsequent test, and, once the vehicle passed, a further £120 for the licence itself. Licences last only a year, so Mr Kelly paid substantial sums annually; had he not paid, no licence would have been granted. As the charges rose he came to contend that the Council had no power to levy them, and sued to recover what he had paid. Before Andrew Smith J in the Queen's Bench Division, Liverpool District Registry, the parties agreed that preliminary issues on the power to charge should be determined. Mr Kelly, appearing in person, succeeded: the judge held that fees could be charged only to those to whom licences were granted, and that it was accordingly unlawful to levy inspection charges at the time of inspection. The Council appealed with the judge's leave, he having recognised the general importance of the point to local authorities. Mr Kelly chose not to appear on the appeal.