LONDON BOROUGH OF WALTHAM FOREST

Transcription

1 LONDON BOROUGH OF WALTHAM FOREST 11 Committee/Date: Cabinet: 10 July 2007 Title: Council Priority: Directorate: Report of: Contact: Street Trading Fees and Market Stalls Strategy Improving the Safety and Quality of the Environment Environmental Services Executive Director Phone: E.Mail: Action required: Wards affected: Robin Carter, Interim Head of Street Services For Information High Street, Forest and Leytonstone Appendices: Appendix 1: Proposed Fees 1/9/07 to 31/3/08 Status: Open 1. SUMMARY 1.1. Street trading and market stall hire fees have not increased since 2000/01. As a consequence they have not kept pace with inflation or the costs associated with street cleansing and refuse collection. Following an exercise to accurately apportion the costs of the above services in the last financial year, the Street Trading Account will run into deficit of approximately 288,000 in 2007/8 without corrective action. This is likely to get worse in future years. This report informs Cabinet that the Executive Director, Environmental Services has used his delegated powers to propose increases in fees, which are currently subject to statutory consultation. 2. RECOMMENDATION 2.1. The Cabinet is requested to note that the Executive Director, Environmental Services has: Proposed increased Street Trading fees and miscellaneous charges as set out in Appendix 1 with effect from 1 September 2007 and increased stall hire charges to 5 per day plus VAT on a weekday and 7 plus VAT on Saturdays; Agreed that the market will be opened up to casual traders with immediate effect; Commenced statutory consultation in respect of the proposals detailed in and that he will take into account any written representations when making the final decision whether to implement his proposals

2 3. REASON FOR DECISION 3.1 The Executive Director is reporting his proposals to the Cabinet due to the significance of the market to Walthamstow Town Centre. Cabinet s views are welcomed although it should be noted that decisions in respect of market fees are a matter reserved to Council under the Local Government Act 2000 and delegated to the Executive Director, Environmental Services under the Council s Constitution. 4. PROPOSAL 4.1. The Street Trading Account is a ringfenced account, (i.e. the account is totally self contained, cannot be used to cross subsidise any other accounts and any deficits or surpluses relating to this account must be held in a separate reserve) which has historically maintained a surplus. However, this surplus has been eroded by year on year deficits on the account. Between 2004/05 and 2006/07 the reserve s balance has moved from a surplus of 370,000 to the current surplus of 83, During 2006/7, a detailed review of the account led to a change in the proportion of charges attributed to the Street Trading Account for cleansing and waste services. This reflected an accurate assessment of the amount of waste produced by the market as against other retail, commercial and residential premises in the High Street area. This led to a budget deficit of 190,143 for 2006/07 in the street trading account The Street Trading Account is budgeted to make a deficit of 70,000 for 2007/08 but is projecting (as at month 2) before any price increases a net deficit of 288,000. Clearly this is unsustainable and corrective action needs to be taken, as the position will only get worse in future years. The Street Trading Account needs to at least break even over a three-year period, however, the street trading reserve can be used to mitigate any losses but only during a three-year time frame. The Street Trading account is in its third and final year of deficit and must be in surplus by 2008/ The report proposes an increase in fees by an average of 5%, increasing stall hire charges and increasing miscellaneous fees and charges. The proposed fees and charges are detailed in Appendix 1 and are proposed to be in effect from the 1 st September The casual trader list will also be opened up with immediate effect The increases and actions detailed in 4.4 will reduce the Street Trading account net deficit to 177,000 during 2007/08, a reduction in the projected deficit of 111,000. There is 84,000 in the Street Trading reserve account to mitigate this. However for 2008/09 a surplus must be generated of at least 94,000 to ensure the reserve is in balance for future years

3 4.6. The proposed increases for 2007/08 in fees and charges plus any appropriate inflation amounts during 2008/09 should ensure that the Street Trading reserve Account would have a modest surplus of approximately 35,000 by the end of 2008/09. However, this assumes that ALL costs remain static. It is therefore considered prudent that fees and charges should be reviewed annually to ensure that the service breaks even. 5. ALTERNATIVES CONSIDERED 5.1. An alternative would be to attempt to get the Street Trading Account into balance within the current financial year. This would necessitate in a 23% increase in fees and charges. A do nothing option is not appropriate due to the budget deficit outlined. 6. CONSULTATION 6.1. In accordance with statute, the Council has given public notice of the proposed changes in fees and charges to the market traders and their representatives and placed the notice in a local newspaper circulating in the area. The public has 28 days to make written representations to the consultation. Responses are due to be returned by 11 th July 2007 and any received by 10 July will be reported orally to Cabinet for information. 7. IMPLICATIONS 7.1. Financial It will be necessary to increase the street trading fees and charges by an average of 5%, the stall hire fees to 5 plus VAT on weekdays and 7 plus VAT on Saturdays and the miscellaneous fees and charges from 1 st September 2007 to ensure that the Street Trading account is sustainable by 2008/09 and in future years. Further the casual traders list will need to be opened with immediate effect to mitigate any losses However, it should be noted that the fees and charges relating to Street Trading must be reviewed in line with associated costs on an annual basis to ensure that the charges fully recover all the costs associated with running a Street Trading Service The pricing strategy and proposal has been agreed with the departmental and corporate finance teams and should ensure recovery of Street trading account and reserve and it s future viability in order that there is no impact on the Council s revenue account Legal The Council has power to charge fees for prescribed activities relating to street market licensing and equipment under s.32 of the London Local Authorities Act 1990 (as amended). The proposed charges relate to these prescribed activities

4 Charges may be varied following public notification of changes and consideration of written representations, as set out above in section 6. This consultation is currently ongoing and representations will be considered by the Executive Director when making his final decision The decision to approve the charges is reserved to full Council under the Local Government Act 2000 and regulations made thereunder. Under the Constitution, the fee making powers are delegated to the Executive Director, Environmental Services. Cabinet is asked to note and, if it chooses, comment upon the variation in fees Human Resources There would be no impact on human resources as the street trading team already have support officers in place who would carry out the processes of implementation of any fees increase 7.4. Health Impact Assessment There is no impact on health with regard to this report 7.5 Equality Impact Assessment The market service will need to satisfy the Council s Equal Opportunities Policy, and be tested against the six equality strands of gender, race, age, disability, faith and sexual orientation and in addition on deprivation. The providers of the service will provide translated material where required, provide assistance to people with disability and older people where required. An EIA will be conducted to determine the impact on the service users. 8. CONCLUSION 8.1. Approval of the above proposals is vital to ensure that the Street Trading account remains viable and does not have an adverse impact on the Council s revenue account. Background Information Report to Council 18 July 2002 This report has been cleared after discussion with the Portfolio Member. Signed Date 29 th June 2007 Portfolio Member for Environment - 4 -

5 APPENDIX 1: Proposed Street Trading Fees & Charges LONDON BOROUGH OF WALTHAM FOREST STREET TRADING LICENCE AND ADMINISTRATION FEES LONDON LOCAL AUTHORITIES ACT 1990 (AS AMENDED) STATUTORY CONSULTATION NOTICE FOR THE PURPOSE OF THE ACT The Council of the London Borough of Waltham Forest hereby gives formal notice of the following proposed resolution: The fees for street trading licenses and administration charges for the period 1 September 2007 to 31 March 2008 inclusive as determined under Section 32(1) of the London Local Authorities Act 1990 (as amended) be as listed below : WALTHAMSTOW MARKET Annual Licence per calendar month ( s) DAY TUES WEDS THURS FRI SAT SAT (If trading on some other days) SAT (If trading on all other days) 2.4 x 2.3m x 2.3m x 2.3m x 2.3m x 2.3m x 2.3m x 2.3m Casual Traders daily charge ( s) DAY TUES WEDS THURS FRI SAT ALL SUN WEEK (excl Sunday) 2.4 x 2.3m x 2.3m x 2.3m x 2.3m x 2.3m x 2.3m x 2.3m Hire of Vacant Pitches by Permanent Traders daily charge ( s) DAY TUES WEDS THURS FRI SAT SUN 2.4 x 2.3m x 2.3m x 2.3m x 2.3m x 2.3m x 2.3m x 2.3m SUN - 5 -

6 Individual or Miscellaneous Sites Whipps Cross Road and Leytonstone Plaza Monday to Saturday Licence Sunday Licence 230 per calendar month 50 per calendar month Other Fees Licence Application 30 Annual Licence Renewal 30 Replacement Licence 30 Casual Licence Registration 30 Replacement Plaque 5 plus VAT Arrears Reminder Letter 25 Arrears/Officer Panel Letter 50 Variation Request - On application 10 On approval 10 Christmas Market - Sundays 25 per day Mondays 15 per day Stall Hire Monday to Friday 5 plus VAT per day Saturday 7 plus VAT per day Parking Permit Storage Shed or Container Hire Plugs 45 per calendar month 260 per quarter 5 plus VAT each Forecourt Licence - On application 30 On approval 30 Licence Fees 20 per week Annual Renewal 30 Application for designation of new trading site 350 (non refundable) The above fees are calculated with the objective of covering the costs of administration, enforcement, waste management and cleansing activities associated with the street trading function. Any persons wishing to make representations regarding the proposed fees as set out above may do so in writing by 11 July 2007 to the address stated below. Gareth Jones Enforcement Manager Low Hall Depot Argall Avenue Leyton E10 7AS Gareth.Jones01@walthamforest.gov.uk - 6 -