Crematorium and parking fees rise as Luton Council struggles with £10.5m budget gap

Several of the local authority's services have reported income shortfalls in this year’s budget monitoring, including cemeteries and crematorium and parking services, according to a report to the committee.

Extra income raised when the increased charges are introduced from November 1st "will help ease pressure on service budgets by reducing the shortfalls reported at quarter one" of 2022/23, said the report.

"These will link in with any departmental recovery plans and go some way to mitigate the £10.5m overspend forecast. And applying these higher costs mid-year will avoid the need for much larger step rises next April."

Labour Limbury councillor Rob Roche told the committee: "Given rising inflation and the proposed pay award this year, the council finds itself exposed to increased costs which weren't factored into the budget approved in February.

"These also contributed to the £10m overspend reported at quarter one," he said. "A mid-year review of our fees and charges has resulted. The report contains the outcome of this, which is the responsibility of the executive.

"The charges which relate to regulatory services, such as licensing and the registrar's responsibilities, fall under the administration and regulation committee.

"The proposed charges are estimated to deliver an extra £192,000 income for LBC during the rest of the financial year and £450,000 more in a full year, which will help reduce the overspend.

"The executive is recommended to approve the changes to the scale of fees and charges to be implemented from November 1st."

Liberal Democrat Barnfield councillor David Franks said: "This went to finance review group and two issues came up strongly, including what was considered the excessive percentage increases in taxi and private hire licensing figures.

"The other area of concern was the increase in collection charges for bulky household waste, such as furniture and fridges. Have you made provision for increased costs for dealing with flytipping because inevitably there'll be more of this?"

Finance portfolio holder councillor Roche replied: "On the costs, they've to stay within the perimeter of the relevant service. So, if it had to be for flytipping, yes we've made them aware of that."

Labour Challney councillor Tom Shaw explained: "Any (related) income raised is spent on cleaning up flytipping. Any charges on bulky household waste which come in are spent on cleaning up flytipping.

"Our problem is that money from brown bins must be spent by law on cleansing activities, so any increase in cost would be spent that way."

The impact of rising prices because of inflation means the council is unable to fully recover the higher costs incurred in providing services, added the report.

"The scale of charges set for 2022/23 were calculated last autumn and based on a prevailing four per cent inflation rate and a 2.2 per cent pay award assumption.

"This was prior to the subsequent global surge in wholesale energy prices and the ensuing cost of living crisis."