Agenda item

Reporting Person – Eugene Walker

The Executive received a report detailing the proposed discretionary fees and charges for 2024-25.  Councillor Roberts, Portfolio Holder for Finance, highlighted that the review of fees and charges needed to be considered in the context of, and was constrained by, the Council’s current financial position following the issue of a Section 114 Notice in June 2023.  The Executive noted that the Council faced a deficit of £1.2bn and was experiencing a budget shortfall of £12m due to an over reliance on commercial income.  The Portfolio Holder advised that the Council had identified £8.5m savings to address the budget shortfall.  Separately, the Council was working to resolve the historic debt which would prevent a legal budget being set for 2024-25 without Government support.

Attention was drawn to the Council’s Improvement and Recovery Plan (IRP) which would address the capacity of the finance team, and the required improvements in the financial and commercial information which supported decision making on fees and charges.  A Commercial Strategy was being developed as part of the IRP which would be used as a framework for setting fees and charges going forward.  The Portfolio Holder therefore proposed an additional recommendation (iv) to read “next year’s process will use the Commercial Strategy and Protocol being developed as part of the Improvement and Recovery as the framework for setting fees and charges, to ensure that fairness, equity and social impacts are balanced with a sound commercial approach”.  The Executive welcomed the amendment to the recommendations.

Regarding car park charges, it was noted that a Parking Study was currently taking place and proposals would be put forward for Member consideration in February 2024.

The Portfolio Holder was grateful that the Overview and Scrutiny Committee would be considering the Review of Fees of Charge 2024-25 report under Urgent Business at its meeting on 20 November 2023.

Members also discussed charges regarding commercial open spaces, season tickets related to CO2 rating, garden waste and replacement waste bins, and consultation in respect of proposed January 2024 increases.  Regarding community meals, the Executive acknowledged the rising costs of food items and recognised that increases were necessary to ensure services could continue and were cost neutral.  As many of the services provided by the Council were non-statutory, it was necessary to increase fees and charges in order to continue provision and ensure services were cost neutral whilst being mindful of affordability.

Councillor Davis raised a question regarding the level of detail in the report and the difficulty in scrutinising fees and charges as a result.  The Portfolio Holder acknowledged that the financial and commercial information used for setting fees and charges needed to further improve as part of the wider Improvement and Recovery journey.  It was noted that Officers had used the best information available to put forward cost neutral discretionary services, balancing fairness to service users with affordability to taxpayers.

REcommended to Council

That  (i)    the discretionary fees and charges for 2024/25, as set out in Appendices 1 – 4 of the report, be approved;

          (ii)   the proposed increases in discretionary fees and charges from 1^st January 2024, as set out in Appendices 5 – 7 of the report, be approved;

          (iii)  to move the waste service to a cost neutral position as soon as possible, any of the proposed 2024/25 increases for Bulky Waste and Waste Receptacles set out in Appendix 2 to the report that can be implemented quickly should be introduced at the earliest practical date following approval by Council; and

          (iv)  next year’s process will use the Commercial Strategy and Protocol being developed as part of the Improvement and Recovery as the framework for setting fees and charges, to ensure that fairness, equity and social impacts are balanced with a sound commercial approach.

Reason:   The regular review of discretionary charges ensures that the Council maintains its income base and generates additional resources for the provision of services.