Subject: PROPOSED DISCRETIONARY
FEES AND CHARGES 2012/13
Status: For Decision
Report to: Cabinet
Overview & Scrutiny Committee
Date: 31st October 2011
2nd November 2011
7-10th November 2011
Report of: Service Director – Finance and
Report Author: Robert Summerfield
Tel: (01706) 924249
Cabinet Member: Cabinet Member for Finance
Section 151 Officer
Key Decision: No
Forward Plan General Exception Special Urgency
1. PURPOSE OF REPORT
1.1 To present the discretionary fees and charges proposed by Service
Directors for the 2012/13 Financial Year. An increase of 3.6% was
approved in Budget Guidelines Report for 2012/13, however, Members
have requested that this percentage increase be raised to 4.6% where
possible. The effect on discretionary fees & charges is shown below.
2.1 It is recommended that:-
2.1.1 The proposed discretionary fees and charges be approved, subject to
consultation with Overview and Scrutiny Committee, from 1st April 2012 or
such other date outlined in the report and accompanying appendices.
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2.1.2 Cabinet approve the changes in fee/charge levels outside the agreed 4.6%
as detailed in the appendices and summarised in paragraph 3.6.
2.2 Reasons for recommendation:
2.2.1 Each Service is required to achieve an overall increase in its discretionary
fees and charges income of 4.6% in accordance with budget guidelines for
2012/13. Service Directors who are not proposing increases in charges of
4.6% are required to identify alternative savings. Service Directors may
seek approval from Cabinet to have certain services exempted from the
requirement to increase income from charges by 4.6%.
MAIN TEXT INCLUDING ALTERNATIVES CONSIDERED/ CONSULTATION
3.1 Alternatives and Risks considered:
3.1.1 Where Services are provided in competition with the Private Sector, the
pricing strategy adopted has taken account of market forces and, where
appropriate, of local competition.
3.1.2 Pricing strategies should be continuously reviewed in the light of changing
market conditions and amendments made, as appropriate, to vary the
services provided in order to best meet demand and to optimise income
3.2 Consultation Undertaken / Proposed:
3.2.1 It is expected that pricing strategies take account of local competition
(both private and public sector) where applicable, and comparisons with
other Local Authorities.
3.3. Equal Opportunities Implications:
3.3.1 The increased fee levels may have an impact on lower income households
and service users.
3.4 Areas where no discretionary fees and charges are levied:
3.4.1 The following Service Directors have indicated that their Services have no
discretionary fees and charges.
• Children’s Social Care
• Human Resources
3.5 Discretionary fees and charges:
3.5.1 Each Service Director has been requested to prepare an appendix to
accompany this report providing:
• A commentary outlining the main issues in relation to the proposals for
discretionary fees and charges for 2012/13.
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• Confirmation that the required increase in discretionary fees and charges
income will be achieved by implementing the proposals.
Appendices provided by Service Directors:
1 Fees/Charges increased over 4.6%
1A / 1B Older People & Physical Disabilities
2A / 2B Business Partnerships
3A / 3B Customers and Communications
4A / 4B Environmental Management
5A / 5B Finance Services
6A / 6B Highways
7A / 7B Learners and Young People
8A / 8B Legal & Democratic
9A / 9B Performance and Transformation
10A / 10B Planning & Regulation
11A / 11B Regeneration
12A / 12B Schools
13A / 13B Strategic Housing
14A / 14B Learning Disabilities, Mental Health & Vulnerable
3.5.2 Fees and charges are presented net of Value Added Tax in this report
unless otherwise stated.
3.6 General variations to 4.6% increase
3.6.1 A number of Services have variations in their fees and charges from the
agreed 4.6%. These are shown below.
3.6.2 The Service Director for Adult Care Operations will not be increasing a small
number of charges through this process as the decision is being deferred to
Cabinet at a later date for operational reasons (see appendix 1). Charges
increased above 4.6% have previously been reported to Cabinet in a report
dated July 2011.
3.6.3 The Service Director for Customers & Communication has excluded several
library charges from the increase, in order to reduce the administration cost
of processing small amounts of cash income. This is expected to have a
negligible affect on the Service budget due to the small amounts involved.
3.6.4 The Service Director for Performance & Transformation has increased
certain charges above the 4.6% to cover costs and align fees with external
3.6.5 The Service Director for Planning & Regulation is proposing variation from
4.6% in several areas to allow for market conditions and as a result of
extensive benchmarking activity. The Service does not expect this to have
an effect on its ability to achieve the required level of income.
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3.6.6 The Director of Highways has increased parking charges greater than 4.6%
in some cases. This is mainly due to increases in VAT and has been
communicated previously to Cabinet via a report dated January 2011.
3.6.7 Some of the charges may not be directly in line with the 4.6% requirement
due to rounding. The Authority applies a rounding criteria to all fees levied
across the Authority. Fees below £1 are rounded to the nearest five pence,
those above to the nearest pound. There is however some variation from
this criteria at the discretion of Service Directors.
3.7 Fees raised by greater than the agreed 4.6%
3.7.1 The table in appendix 1 indicates the charges which have been increased by
greater than the agreed 4.6%, except where the application of the rounding
criteria described in paragraph 3.6.7 is the cause, or where increases have
been communicated previously to Cabinet via other reports.
4. FINANCIAL IMPLICATIONS
4.1.1 Service Directors are required to consider proposals to achieve an overall
increase in income from discretionary fees and charges of 4.6% for
2012/13. Service Directors have confirmed that their proposals will achieve
this requirement, or where this is not the case, Services will adjust revenue
budgets to make up any shortfall.
4.1.2 As part of continuing close working with Authorities within the Association
of Greater Manchester Authorities, Rochdale MBC has endeavoured to align
many of its charges across this group. This has led to proposals to increase
some fees/charges within Environmental Management, Planning and
Highways above 4.6%.
5. LEGAL IMPLICATIONS
5.1.1 There are no legal implications arising as a result of this report.
6. PERSONNEL IMPLICATIONS
6.1.1 There are no personnel implications arising as a result of this report.
7. RISK ASSESSMENT IMPLICATIONS
7.1.1 There are no specific risk issues for members to consider arising from this
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Background Papers For Further information about this report or access to any
background papers please contact Robert Summerfield – Senior Accountant (Special
Projects) Tel: 01706 924249
Service Director Finance and Procurement
PO Box 39
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Appendix 1 - Fees increased above 4.6%
No. Charge Description
Customers & Communications
Reservations Supplied As
Photocopies Via Regional
Library Service (per item)
2.00 3.00 50%
Charge set at same level as
Book Reservations for items
not in stock.
C1 Blue Badge Fee 2.00 10.00 400%
For Blue Badges valid from
January 2012 onwards.
£10 charge applies to
renewals from November
2011. Charge set at £10 to
ensure recovery of all
associated costs (delivery
etc.). £10 is maximum
charge allowable under
Credit Card transaction fee.
1.75% charge on the full
transaction value to
customers paying their
Council Tax, Business
overpayments and general
income charges by credit
1.75% 1.85% 0.1%
% Increase in line with
increased charge from
Fair & Circus Site Fees (per
500.00 600.00 20%
Fair & Circus Individual
Rides (per day)
50.00 55.00 10%
(Fair & Circus) Bouncy
Castles (per day)
50.00 55.00 10%
Burials - Additional
30.00 35.00 17%
Burials: Right To Erect
109.00 120.00 10%