Agenda item

Report of the licensing manager.

The licensing manager presented a report to enable members to consider the level of fees for 2012/13. The report was concerned with the setting of the licence fees for hackney carriage and private hire licences, and miscellaneous licences issued by the council. 

Members were advised that licences issued under the Licensing Act 2003 and the Gambling Act 2005 fell within the remit of the Licensing Act Committee and not this Committee, but that in any event these fees were fixed or influenced by central Government. Members were reminded that for the purpose of the 2011/2012 budgetary process the council was satisfied that there should be an increase in licensing fees for hackney carriages and private hire licences of 10%, but no increase for miscellaneous licences. Prior to this there had been no increases in fees for either of the above categories since April 2005. Even with the increase in hackney carriage and private hire fees in 2011/2012 there had still been a predicted shortfall of £70,300 due to the disproportionate amount of time that officers had had to allocate to this function.  It had been recommended in last years report that the situation be closely monitored.

Members were reminded that, it had for many years been the policy of the council for the licensing service to be self-financing. However, it had always been acknowledged that there were some licences or permits, for example street collection permits, where no fee was charged. As a consequence, there would inevitably be a deficit in respect of these miscellaneous licences.   

The annual revision of fees sought to ensure that the costs of the service would, so far as possible, be met from the income.  However, it was not lawful for the council to seek to make a profit from licence fees that were within its discretion.  In particular, with regard to hackney carriage and private hire licensing, Section 70 of the Local Government (Miscellaneous Provisions) Act 1976 provided that a district council may charge such fees for the grant of vehicles and operators licences as may be sufficient to cover in whole, or in part, the reasonable costs of carrying out inspections of hackney carriages and private hire vehicles, the reasonable costs of providing hackney carriage stands, and any reasonable administrative or other costs in connection with the control and supervision of hackney carriages and private hire vehicles. Fees charged for drivers’ licences may also be set at an appropriate level to cover the cost of issue and administration.

It was reported that there had recently been a restructure within the licensing department, and the disestablishment of two posts had been approved. Following a financial assessment of time allocations for licensing staff taking into account the new structure, internal departmental recharges together with other costs borne by the licensing service, the current fees charged for hackney carriages and private hire vehicle licensing and miscellaneous licensing had been reviewed. As a result of this exercise, it had been calculated that for 2012/13 the budgeted cost of the hackney carriage and private hire licensing function would be £215,900, and for miscellaneous licensing £16,800. 

It was impossible to estimate with any degree of certainty the amount of income from licence fees, given that some licence holders may decide not to renew their licence, and there may or may not be a number of new applications for licences. However, on the basis of the best possible estimate of numbers of licences that would be issued in 2012/13, it was estimated that, if the fees remain at the same levels as in 2011/12, income from hackney carriage and private hire licensing would be £164,200 and for miscellaneous licensing £13,600

On the basis of the above projections it was clear that even following the restructure and the disestablishment of the two posts within licensing that the level of income generated through licence fees would not be sufficient to cover the costs in providing the function and would still leave a shortfall of £51,700. However, officers had not considered that it was necessary to increase the hackney carriage and private hire licensing fees at this time, as they were looking at all procedures in an attempt to reduce the cost related to this function. It had also been difficult to see what the full effect of the restructure in the licensing department would have, and the proposed introduction of a three year driver’s licence if approved. It was recommended that the situation should be closely monitored throughout 2012/2013, and if the trend continued an increase may be recommended in 2013/2014. Miscellaneous licensing had shown a deficit of £3,200 but it was felt that this properly reflected the work undertaken in respect of licences where a fee could not be recovered, (e.g. street collection and house to collections).

Members were reminded that as of 1 December 2011 the responsibility for carrying out the licensing function in relation to animal welfare had been transferred to Health and Housing, however the head of health and housing had requested that the fees in relation to that function be considered within this report, and had recommended that there be no increase in the fees charged for 2012/2013.

It was proposed by Councillor Burns and seconded by Councillor Greenall:-

“That for the financial year 2012/13, there be no increase in the fees charged by the council for fees relating to hackney carriages and private hire vehicles, and miscellaneous licences.”

Resolved:

That for the financial year 2012/13, there be no increase in the fees charged by the council for fees relating to hackney carriages and private hire vehicles, and miscellaneous licences.