Leading pub industry groups have urged the government to review the late-night levy policy.

Figures obtained by the Publican's Morning Advertiser revealed that the measure has raised £76,889 for Cheltenham Borough Council since it was introduced in April 2014.

This is just 39 per cent of the amount the council had been expecting to generate, partly because 22 per cent of licensed premises affected by the charge reduced their trading hours to avoid paying it.

Kate Nicholls, chief executive of the Association of Licensed Multiple Retailers, has therefore called on the government to take another look at the legislation.

She said it is especially worrying that the late-night levy has prompted businesses to reduce their trading hours, as this has reduced diversity in the night-time economy and is one of several "unforeseen consequences" of this policy.

Ms Nicholls also raised concerns with Cheltenham's use of late-night levy receipts to fund work that would typically be paid for by the local authority.

For instance, she said money generated by the charge was used to fund a coordinator for a new Purple Flag scheme.

Ms Nicholls accepted these are "good partnership initiatives", but said they benefit all businesses regardless of their opening hours - yet are only being paid for by establishments that open late at night.

She has therefore insisted that these schemes "be pursued instead of a levy not on top of one".

The British Beer & Pub Association added that the data for Cheltenham shows why late-night levies are not an effective policy. 

Brigid Simmonds, chief executive of the body, said the charge failed to secure the expected revenues in the Gloucestershire town, while it can "damage the local economy and get in the way of good partnerships between local businesses, the police and councils".

She went on to state that she hopes the figures for Cheltenham encourage other local authorities to back away from levy plans.