25 January 2008
Councils should give more thought to how the revenue they collect from charging contributes to their overall financial strategy, the Audit Commission said this week.
Councils in England are now collecting almost £11bn a year in charges for services such as swimming, parking and school meals — equivalent to £210 for every person and half as much as is raised in council tax.
But the commission said that the majority of councils had little understanding of how their approach to charging contributed to their overall financial strategy and how it compared with other councils.
Its January 22 report, Positively charged, uncovered widespread variation in charging among councils, which the commission concluded did not reflect any conscious strategies.
Commission chair Michael O'Higgins told Public Finance: 'We are not recommending either more or less charging, but that councils should think it through, given it is a very significant part of the revenue they raise locally.'
An Ipsos Mori poll published alongside the report showed that the majority of people consider council charges to be good value. Even car parking charges received a positive rating by half the poll respondents.
O'Higgins added that central government had a part to play in regularly reviewing the charges it sets and considering whether they could be devolved to councils.
Commenting on the report, Local Government Association chair Sir Simon Milton said: 'Every area has its own unique issues and councils will rightly adapt charging policies to local circumstances.'
He added that charges would be better exercised through an open and progressive local tax system.
PFjan2008
