Local councils in England have legal powers to charge for a wide range of services, such as car parking, sports and leisure, domiciliary care, building control, pest control, and the hiring of community halls. Charging revenue is an important source of income for local councils, with over a quarter of councils generating more income through charging than they do from council tax.
Charging income is increasingly being used to help fund the modernisation and improvement of services. Charges can also help councils to manage demand for services or to achieve wider strategic objectives, such as encouraging healthier lifestyles through the use of sports and leisure facilities.
Audit Commission study
The Audit Commission carried out research in 2007 investigating the approaches councils take to charging for local services. The study resulted in the publication in January 2008 of a national report, Positively charged: Maximising the benefits of local public service charges, together with a suite of tools, to help councils improve their use of charges.
National report
Positively charged: Maximising the benefits of local public service charges examines the contribution made by charging to council finances, and how decisions on charging can support other strategic objectives for local government. The report concludes that although charging provides £11 billion a year to local government funds, it receives far less attention than it deserves. Most councils believe that they do not use charging to its full potential. The report discusses how councils can improve their approach and communicate better with councillors and the general public about the purposes of charging. It also provides a number of case studies demonstrating notable practice.
Charging directory
During our research we found many councils eager for illustrations and examples of how other councils are using charging. We invited councils to submit information about how they use charges, and have compiled the examples they provided in our charging directory. The directory contains over 50 examples from a range of councils.
We are keen to include further examples in the directory to maximise its usefulness for councils wanting to identify new approaches to designing and managing existing charges, or potential areas for new charges. Councils can continue to submit examples using the template below.
The calculator is an Excel-based tool designed to support councils in examining the current financial impact of charges on local households. Councils can enter information about households, their levels of service use and the charges they pay. The calculator will then show the impact on household finances of both charging and council tax. The calculator allows councils to compare different households with different patterns of service use. It also allows councils to compare the impact of their own local charges with those of other councils in relation to similar households, and to assess the potential impact of different charging structures.
Charging income comparison tool
This web-based tool will help councils compare the income they generate from charges with that of other councils, and consider whether it is consistent with their strategic objectives. It will support councils in analysing the extent to which their decisions on charges and subsidies are supporting council policies.
As part of the charging study, Ipsos MORI was commissioned to carry out research with the general public into their attitudes and experiences of council charges. Their report describes this research and its outcomes.
