Higher levies may work – but beware the backlash

February 17, 2011

Faced with the biggest budget cuts in living memory and what amounts to a freeze in council tax, it is not surprising that many councils are looking at higher fees in areas like parking, planning and leisure. The question now is whether or not these new charges will seem fair to residents.

Surprisingly, the answer just might be yes. The polls show that almost half of us would rather pay more than see local services cut, but we don’t want to pay it through council tax rises.

Charges are the obvious alternative, and a survey last year found that a majority of the public think charging is fair as long as the money is used to protect other services. In other words, if higher fees help to keep the local leisure centre or library open, the public might back a more ‘pay as you go’ approach.

This could work even more effectively if councils means test some of their charges – so people in higher council tax bands might pay a bit more for parking permits or extra bin collections. Nearly 60% of us think that this might be an acceptable way forward if it ensures equal access to public services.

The current trend for extra charging can only go so far – central government restrictions mean that councils cannot intentionally turn a profit from parking and many other services. Some of the increased fees we are seeing across the country are probably the removal of old subsidies so the public bears the full cost.

Even so, councils will need to be very careful to avoid a backlash.
Charges for waste and parking could prove to be particular flashpoints.
And introducing any increases by stealth is likely to provoke an angry response, especially if the council hasn’t already looked at every other option for efficiency.

Simon Parker, Director, NLGN