People in York may foot the bill for 24-hour drinking by paying more council tax, the local authority has warned.
City of York Council estimates it could cost more than £100,000 a year to pay for the staff and equipment needed to police pubs round-the-clock.
Councillors in the city are concerned taxpayers will be affected if the authority does not receive extra funding from the government.
Council officials are due to outline the new Licensing Act to the public.
The act would allow pubs to apply to stay open all day from 2005, although experts say in practice this will probably be until midnight or 2am.
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