Agenda item

(Director of Resources) To consider the attached report (FPM-022-2015/16).

The Director of Resources presented a report on the fees and charges to be levied by the Council in 2016/17 and what, if any scope there was to increase particular charges.

The Director of Resources advised that the Medium Term Financial Strategy identified the need to find savings of £1m over the four year period with £150,000 falling in 2016/17. The traditional use of the September Retail Prices Index (RPI) or Consumer Prices Index (CPI) as a guide for inflation had been replaced by the labour inflation rate because of employee costs representing the largest element of expenses when carrying out the services for which a charge was made. The latest figure available was 2.8% and this had been used as a guide for any proposed increase in fees and charges.

The Director of Resources stated that it had been proposed to increase the fees and charges within the Communities Directorate by rounding up charges to the nearest 10 pence, 50 pence or pound, with the exception of charges already agreed earlier in the agenda in relation to Housing Related Support Services.  A review of museum related fees and charges would be reported to Cabinet in February 2016 in readiness for the opening of the Museum in March 2016 and following a discussion at the Resources Select Committee about the hire charges at The Limes Centre, Registered Charities had been moved into Scale 1, although as there were none currently using the facilities there would be no loss of rental income to the Council. The bed and breakfast accommodation rates for 2016/17 were also not included because of a competitive tender process being completed and a charge of £26.20 for Care gardening service had been applied and for benefit recipients the first visit would be free of charge.

Within the Governance Directorate, the situation regarding Land Charge income was still very uncertain and the fee income had dwindled, although it was not proposed to increase the fees as this might drive more people to do personal searches which were free. The Development Control fee levels were controlled by Central Government and the levels of income were somewhat dependant on the economic climate and the number and size of planning applications. With regard to pre-application charges that applied to major applications, income was buoyant at the moment and the budget had been exceeded substantially. The work required to generate the fee was quite labour intensive and it was felt that an increase was appropriate. The Building Control Fee levels were felt to be reasonable and income levels had improved.

Within the Neighbourhoods Directorate the MOT income was subject to a maximum charge set by the Vehicle Operating Service Agency (VOSA) which was currently £54.85 and the Council’s fee was set at £49.00. With regard to Car Parking charges, the recent changes to the fee structure had only just come into effect and it was a little premature to review these again. From 1 October 2015 there was a change to the fee structure for Hackney Carriage and Private Hire driver’s licences and operator’s licences which were issued for three years and operators for five years and no proposed increases as they were set based on cost recovery. With regard to other forms of licensing, some fell under the 2003 Licensing Act which prescribed the level of fee and others varied subject to a maximum level or on a cost recovery basis. Licence Fees were generally below the prescribed level and had not recovered the cost of provision; therefore they were increased where appropriate. The fees relating to the collection of bulk waste varied, depending on the number of items being collected and was specified under the new waste management contract. The fees and charges related to the Leisure Centres were specified as being in line with the retail prices index within the leisure contract and any variance from this had to be agreed with the Council in advance of the increase.

The Director of Resources advised that the report sought Members views on the level of fees and charges for 2016/17.

The Cabinet Committee advised that when amendments were made to the ‘Promotion of a City of London Corporation (Open Spaces) Bill’, commercial activity within the Forest by the Council would have to be considered but in the meantime there was a view to have all the activities around the same cost. The fees and charges had been considered by the relevant Select Committees and although costs had been increase by 2.8%, the Cabinet Committee felt that this should be a minimum and that perhaps increases should be rounded up to the nearest £5.00. It was also felt that the charge for the Play in the Forest Scheme should be inline with other activities and increased to £3.00.

The Cabinet Committee also commented on the provision of Environment Health Training and whether it was cost effective, made any revenue and whether there was a need to provide it. Further details were requested from the Neighbourhoods Directorate on this before a decision could be made for 2016/17. There were also comments on whether there was any further information on the Hemming case, which affected the fees and charges surrounding Sex Shops and Cinemas and Sexual Entertainment Venues.

Recommended:

(1)        That the use of Labour Inflation Rate (2.8%) as a guide for any proposed increases of the Council’s fees and charges for 2016/17 be agreed;

(2)        That the proposed fees and charges for 2016/17, as set out in the Appendices attached to the report be approved subject to the following proposed increases within the Communities Directorate for Play in the Forest and Neighbourhoods directorate for application events for the following;

a)    Play in the Forest                    - £3.00

b)    Basic food hygiene course     - £75.00

c)    Animal boarding                      - £310.00

d)    Dog Breeding                          - £310.00

e)    Pet Animals Act                      - £310.00

f)     Dangerous wild animals          - £675.00

g)    Riding establishment               - £675.00

h)    Zoo’s                                       - £550.00                    

(3)        That the proposed schedule of Housing Revenue Account fees and charges for 2016/17 be approved subject to the following;

(i)            Careline

            Council tenants:

                        Self-funders                            -  £3.60 per week

                        In receipt of housing benefit    -  £0.55 per week

            Private users                                       -  £112 per annum

(ii)           Scheme Management

            Sheltered tenants:

                        Self-funders                            -  £8.61 per week

                        In receipt of housing benefit    -  £1.57 per week

            Area tenants:

                        Self-funders                            -  £2.16 per week

                        In receipt of housing benefit    -  £0.39 per week

(iii)          Intensive Housing Management (not paid by those in receipt of housing benefit)

                        Sheltered tenants                                -  £1.52 per week

                        Area tenants                                        -  £0.38 per week

Reasons for Decision

As part of the annual budget process changes to fees and charges needed to be agreed.

Other Options Considered and Rejected:

Where the Council had discretion on the level of fees and charges that were set and there were many possible options open to the Council ranging between no increases up to applying quite large increases where justifiable.