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The Home Office is currently consulting on the details of introducing a Late Night Levy from this Autumn.

New legislation gives councils the discretion to apply a levy to all licensed premises - on and off-trade - which are authorised to sell alcohol between midnight and 6am.

The amount of the levy will vary on the size and nature of the licensed premises but could be as high as £4,440 a year.

The Home Office estimates that it could raise as much as £13.5 million across Wales and England, which will be split 70:30 between the police and participating councils.

Home Office minister Lord Henley explains, "Where there is a vibrant late-night economy, with premises remaining open into the early hours, then the local authority should have the flexibility to charge for a contribution towards any extra policing that this generates."

"Tax payers should not simply be left to pick up this cost. People who enjoy a night out often visit a variety of premises and it is appropriate that the costs are shared between these businesses."

Wales' largest night-time economy is to be found in Cardiff. Of the 1114 premises licensed to sell alcohol in the city, 460 are allowed to trade after midnight - almost half of them are pubs, bars and nightclubs.

The concentration of late-night venues in the city centre has made Cardiff a magnet for those seeking a good night out and over the years the council, police and licensed trade have developed a range of initiatives to help keep people safe.

These include serving plastic bottles and glasses on match days, setting up triage treatment centres to reduce the burden on the local A&E department and helping establish a volunteer Street Pastors scheme to help vulnerable people.

As chair of the Cardiff Licensees Forum, Nick Newman argues that his members are doing enough already and should not be expected to pay a Late Night Levy on top.

"I honestly can't see that there would be the need for it. I'm hopeful that the partnership working that we've done will stand us in good enough stead with the police and local authority... and therefore there's no need to have it."

"I would view it, and I'm sure the industry would view it, as a type of stealth tax. Given what we've achieved I think they would view it as a bit of a kick in the teeth if they were asked to pay yet more.

Nick Newman also fears that the Late Night Levy could hit jobs, with some premises choosing to close at midnight to avoid the charge or going to the wall altogether.

"Some businesses operate on very narrow and tight margins and some operators that employ only a few staff, it could well be the difference between them staying in business and not."

The decision to introduce a Late Night Levy will rest with the council.

In the current financial year Cardiff has spent £165,000 just on employing taxi marshals, while an extra £30,000 was spent over Christmas on extra street cleaning and community safety initiatives as part of "Operation Mistletoe".

While Judith Woodman - deputy leader with responsibility for community safety - stresses that discussions are on-going and no final decision has yet been made on bringing in a Late Night Levy, she sees strong arguments in favour.

"Having seen the effect of Operation Mistletoe on the city centre I personally would like to see it continue - but it does come at a cost."

"We're not a finite pot of money. With further cuts to follow from Westminster and the Welsh Government, I can't say for definite we will be able to carry them on."

"That's why I think the Late Night Levy might prove very useful for us."