Issue - meetings

Review of Fees and Charges Following an Increase in the Standard Rate of VAT

Meeting: 30/11/2010 - Executive - for meetings from 03/06/00 to 26/04/11 (Item 122)

122 Review of Fees and Charges Following an Increase in the Standard Rate of VAT pdf icon PDF 75 KB

This report responds to Members’ request at the last Executive meeting for a report on the implications of the pending increase in VAT (Minute 109 refers), and seeks approval to increase the Council’s fees and charges with effect from 4 January 2011, due to the increase in VAT from that date.

 

Note: An updated fees and charges summary for Communities and Neighbourhoods was published with this agenda on 1 December 2010.

 

 

 

 

Additional documents:

Decision:

RESOLVED:  (i) That Option 1 be approved and that all fees and charges be amended as shown in Annex 1 to the report to reflect the increase in the rate of VAT.

 

 

(ii)               That it be noted that, whilst fees and charges would increase, the overall level of income retained by the Council would remain the same, as all the increased income will be passed over to HMRC as VAT.

 

REASON:      To ensure that the increase in VAT does not have a negative impact on council revenue.

Minutes:

Members considered a report which responded to their request at the last Executive meeting for information on the effects of the pending increase in VAT on the Council’s budget (Minute 109 refers).

 

In view of the Government’s announcement of an increase in the standard rate of VAT from 17.5% to 20%, effective from 4 January 2011, it was proposed that the Council increase all its relevant fees and charges to reflect this increase, as set out in Annex A to the report (Option 1).  The alternative was to leave fees and charges at their current rate (Option 2); however, this would result in a loss of income of approximately £50k during the current financial year.

 

Having noted the comments of the Labour Group Spokespersons on this item, it was

 

RESOLVED:  (i) That Option 1 be approved and that all fees and charges be amended as shown in Annex 1 to the report to reflect the increase in the rate of VAT. 1.

 

 

(ii)               That it be noted that, whilst fees and charges would increase, the overall level of income retained by the Council would remain the same, as all the increased income will be passed over to HMRC as VAT.

 

REASON:      To ensure that the increase in VAT does not have a negative impact on council revenue.


 

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