Additionally, all lap dancing clubs were obliged to apply for permission to continue trading after April 2012.
Ministers admit that treating lap-dancing clubs like staid coffee shops is a loophole, says the Local Government Association.
They blame the new rules for the swelling popularity of lap-dancing clubs, whose numbers have doubled to around 300 since 2004.
In late 2011, academics at the University of Kent began carrying out a 12-month study into the effects of lap dancing clubs on communities.
But until this research is complete, hard data surrounding the impact of lap dancing clubs remains fairly limited, according to Birkbeck University's Dr Belinda Brooks-Gordon, author of The Price of Sex: Prostitution, Policy and Society.
However, the government has made it clear there would be no changes on the rules controlling gatherings of more than 5, 000 people, boxing and wrestling, and events such as lap-dancing clubs classed as sexual entertainment.
They are in no respect related to any strip clubs or lap dancing joints.
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The tax had been ushered in at the end of 2007 as part of the Sexually Oriented Business Fee Act and was targeted to clubs which served alcohol and allowed for nude dancing.
The whole population contributes to the success of the festival: craftswomen make silk buttons for traditional dresses, fruit growers supply cherries, local sports clubs participate in competitions, and music and dancing troupes animate the entire festival.
He said the "modest relaxation" of the licensing hours would allow alcohol to be sold in pubs and clubs and also permit live and recorded music, dancing, plays and films to continue until 0100 BST on 29 and 30 April.
And, with more than 300 clubs and 700 bars and restaurants in the city, Dancing Queens will also be spoiled for choice.
From vegetarian restaurants like the Dancing Avocado Kitchen (with their savoury Mexican dishes) to dance clubs like Razzle's (with their pool tables and bumping music), you'll find a perfect place for all of your passengers.
Recent months have seen three existing clubs in Leicester having their licences refused, while Oxford's only lap dancing club has had its application turned down by the council.
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