The price is right?

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Posted by ChrisCorbin on 15 Nov 2008

ePSIplus References to this document

ePSIplus Thematic Meeting – PSI Pricing 1 – Helsinki – Objectives of the meeting. The presentation made reference to the following:

Page 9: Standard Land Charge search fee Page 10: Exhibit 4Page 69: Spending a Penny

Obtaining the report

From The Audit Commission

ePSIplus backup copy (PDF)

Report Preface

“The Audit Commission oversees the external audit of local authorities and National Health Service (NHS) agencies in England and Wales. The Commission is also required to undertake studies to enable it to make recommendations for improving the economy, efficiency and effectiveness of the services provided by these bodies; and to comment on the effects of statutory provision or guidance by central government on the economy, efficiency and effectiveness of these agencies.

Over the last 18 months, the Commission has researched the issue of user charges for council services. User charges are a significant source of income for councils and raise £6 billion each year, compared with the £9 billion raised by council tax.

This report looks closely at how well these charges are managed. It does not seek to reach simplistic conclusions on whether charging for some services is right or wrong, or what the ‘right price’ is for particular services. Instead, it concentrates on looking at whether charges are being used to their full potential to help councils to meet their own priorities. A number of previous studies by other agencies have identified problems and difficulties in getting the best from charges; this report seeks to go further, analysing why councils do not get the best from charges and identifying practical steps that councils can take to improve. There are also issues which government needs to address.

The report is set firmly in the context of the new duty of best value and shows how the issue of charging can be a powerful catalyst within best value reviews.

Many Commission reports have addressed the question of charges in the context of specific services. Most recently, All Aboard: A Review of Local Transport and Travel in Urban Areas Outside London (Ref. 1) looked closely at council spending on public transport and travel, drawing conclusions on subsidy, concessions and charges. Detailed analysis of charges for home care, including the findings of a national survey, will shortly be published in a separate management paper. It will follow up a number of the issues raised by the recent Royal Commission on Long Term Care and the Government’s Social Services White Paper.

The report is based on fieldwork and research that has been carried out over the last 18 months. The study team consisted of Michael Carpenter, Chris Dawe and Lawrence Morris from the Commission’s Public Services Research Directorate, under the direction of Peter Thomas. Detailed fieldwork was carried out in 13 authorities, supported by a review of published work in the area and input from a number of service-specific professional bodies.

In preparing this report the Commission has benefited from the insight and guidance of members of the study advisory group (Appendix 1). It has also been greatly assisted by the helpful co-operation of the authorities visited. The Audit Commission is also grateful to the bodies and individuals who gave their time to advise and comment on drafts of this report. As always, responsibility for its content and conclusions rests with the Commission alone.”

Report Contents

1 Charges for Council Services