The authority had wanted to implement a fee for pubs, bars and clubs that trade in the early hours, with 30 per cent of the money raised going to the council and the remaining 70 per cent going to the police.
However, the move was met with strong opposition from licensees and trade bodies including the British Beer and Pub Association (BBPA).
The organisation believes the council’s latest decision “highlights the fact that late-night levies are an unwelcome new tax and do not work effectively to address to address local alcohol-related issues”.
Instead, the council is proposing a Business Improvement District (BID), which the BBPA said is a better option as it involves businesses as “vital stakeholders in securing a safe, responsible local environment”.
The organisation added that since Gloucester’s pubs add about £43 million to the local economy every year and employ 1,600 people in the city, it is “right that the council will now work in partnership to help local pubs and other businesses to thrive”.
The BBPA had already urged Gloucester City Council to follow the example of neighbouring Cheltenham, as it recently became the first council to scrap a levy in favour of a BID.