Issue - meetings

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of Director of Corporate Services    (report published on 14 January 2021)

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Director of Corporate Services to endorse the Fees and Charges Policy for 2021/22 and consider the freezing of charges across all areas.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

The policy attached to the report remains substantively unchanged and it is considered that it remains fit for purpose (at least in the short term) and it adequately covers Cabinet’s budget proposals. As such, no options are presented and Cabinet is simply requested to endorse the policy, with a review being undertaken next year.

With regard to charges in general, it is proposed to freeze charges for the forthcoming financial year and the impact has been fed into the draft general fund budget for 2021/22. Should Members wish to apply inflation, further work to determine charging levels would need to take place and be fed into the budget setting process as appropriate.

The introduction of the new Housing Improvement Charge is subject to Member agreement and as such is included as a recommendation within this report.

Councillor Whitehead proposed, seconded by Councillor Parr:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)        That Cabinet endorses the Fees and Charges Policy as set out at Appendix A to the report, and during 2021/22 as part of the mid-year budget strategy review determines whether any other areas of income generation be explored further for 2022/23 onwards.

(2)        That Cabinet endorses the freezing of charges across all areas, and notes the areas of significant reduction, as reported as part of the current 2021/22 budget setting process.

(3)        That Cabinet endorses the implementation of the new charges as reported as part of the current 2021/22 budget setting process.

Officers responsible for effecting the decision:

Director of Corporate Services

Director for Communities and the Environment

Director for Economic Growth & Regeneration

Reasons for making the decision:

Traditionally as part of the annual budget process all relevant fees and charges would be increased by inflation for the following year, in line with the annual inflationary review. However, largely due to the pandemic 2020/21 has been a totally indifferent year and key areas of income have been subject to government support equating to 75% of lost revenue, once a 5% relevant budget deduction has been applied.  Whilst an inflationary freeze on fees across all areas will create further strain on the revenue budget the client base is considered to be extremely fragile at the moment. Temporary base budget reductions have prudently been included in key areas such as car parking and Salt Ayre Leisure Centre as they are not expected to return to pre-pandemic levels for budgetary purposes until 2022/23.