The Director of Law, HR and Asset Management submitted a report providing Members with a breakdown of income and expenditure in relation to Hackney Carriage and Private Hire Licensing.  This followed receipt of a Freedom of Information request for a detailed breakdown of income and expenditure relating to Taxi and Private Hire functions for the periods 2007/8, 2008/9 and 2009/10. In response to the request the information was provided with the report. At the last meeting of this Committee, Members requested that a report be brought to the Committee to explain the reason for the deficit in the budget of £33,115 and its relation to the recharge in respect of the One Stop Shop Service.

It was reported that there was an excess of income over expenditure of £2,822 in 2007/8 and subsequently there was no licence fee increase for 2008/9.  A deficit of income to expenditure of £1,747 occurred in 2008//9.  For 2009/10 there was a deficit between income and expenditure of £33,115. This sum reflected the effect of the apportionment to Licensing of the total cost for the provision of the One Stop Shop Service of the Council. This charge is balanced by an equivalent budget provided for the purpose.

It was further reported that the financing of the One Stop Shops was made through recharges to those departments using the service. The total budget to Licensing for the One Stop Shop Service for 2009/10 was £66,905.86 and of this £37,467 was attributed to the Taxis account. The total apportionment was based on the following elements:  number of queries handled, the complexity rating attached to the enquiries, average handling time for each enquiry, and a unit charge. Licensing enquiries had been rated with a complexity of 3, (1 being the lowest and 4 being the highest level), the handling time had been set at 19 minutes and the total enquiries for the year were stated to be 7,435. Thus, this formula determined the proportion of the total cost that was applicable to each service area.  For the purpose of the Freedom of Information request the actual amount of the One Stop Shop Recharge apportioned to Taxi and Private Hire Licences for 2009/10 was based on the percentage of total employee time spent on Taxis which equated to 56%. 

Members were informed that the recharge of the One Stop Shop Service to other departments was an ‘uncontrollable budget’ meaning that the service receiving the charge (in this case Licensing) was not able to directly affect the amount as the charges and costs were not incurred by themselves but were incurred by the department making the recharge (One Stop Shops) and it was simply a proportion of the total charge which was then passed onto them.  A budget is allocated to each department and then at the year end it is the actual cost that is then charged out. During the budget process each year the budget for the recharge is reviewed and amended in accordance with the latest percentage figures provided.  This budget was shown as a separate line within the receiving department’s cost centre.  The code and amount were shown within their normal range of codes for their cost centre but was solely for the purpose of allocating the One Stop Shop Service recharge and was not available for any other purpose. 

Members were advised that to improve the accessibility of licensing services and to support the policy to migrate services to One Stop Shop Service, the licensing service had sought to develop the delivery of licensing services through the One Stop Shops.  The recharge to Licensing reflected the early operation of the arrangements.  The apportioned recharge and the service that was being provided were being reviewed. 

Mr N Kent, Finance Department responded to questions from Members.

It was moved by Councillor Lewis and seconded by Councillor Sue Taylor that -

“(1)  A further report regarding One Stop Shop Charges be brought back to the next meeting of this Committee and that a member of staff from the Finance Department attend the meeting to outline the report.”

(2)  A recommendation be added to the motion to note that the costs of the One Stop Shop are not met by licence fees.”

The motion was put and carried (9:0)

Resolved -

(1)  That Members receive the budget report for consideration and request a further report concerning the outcome of the review of One Stop Shop recharges be brought back to the next meeting of this Committee with a member of staff from Finance in attendance.

(2)  That it be noted that the costs of the One Stop Shop are not met by licence fees.