Mr B Parmenter
10. York Road
Gravesend
Kent
DA12 5JN
By email:

/ Regulatory Services
Ask for:ChristinaHills
Telephone:01474 33 76 51
Fax:01474 33 79 44
Email:
My ref:
Your ref:
Date: April 2011

Dear Mr. Parmenter

Freedom of Information Request 1154

I refer to your recent request for information under the Freedom of Information Act 2000.I have made enquiries of officers of the Financial Services department and their responses are shownbelow in the order of your questions.

  1. Between 2001/2 and 2010/11 the licensing budget went up by 39304.00 pounds (164%) what was the reason for this increase?

Please see 2005-6 to 2010-11 break down of costs in question 9.

  1. In 5 out of the last 10 years the council made a profit what happened to the profit and where was it spent?

The licensing function credit or debit forms part of the General Revenue working balances, which are taken into account when setting the council tax for the following financial year.

The accounting methodology to calculate a cost of a service can be flexible. This authority has utilised the following approach:

  • Using the Best Value Accounting Code of Practice (BVACOP) to define costs, as published by the Chartered Institute of Public Finance (CIPFA).
  • Use of recharges - these are the cost of services that licensing receives from being part of a larger organisation, e.g. property costs, and work performed for licensing by other departments.

Definition of year on year costs is generally not possible – for example a budget may be set which allows a service to cover the cost of provision but actual costs will change through the year, for example reduced costs, recharges, and increased income streams due to economic circumstances.

  1. In 2002/3 the budget went up by 47%, why was a 47% increase needed and what was the 47% increase used for?

The majority of the increase is due to recharges – see explanation under the response to question 9.

  1. The budget in 2004/5 went up by 42%, why was a 42% increase needed and what was it used for?

The majority of the increase is due to recharges – see explanation under the response to question 9.

  1. The 2007/8 budget went up by 37%, why was a 37% increase needed and what was the increase used for?

The majority of the increase is due to recharges – see explanation under the response to question 9.

  1. The 2008/9 budget went up by 39%, why was a 39% increase needed and what was the increase used for?

The majority of the increase is due to recharges – see explanation under the response to question 9.

  1. What is the cost to the council for issuing a private hire/hackney carriage drivers licence?

For 2009-10, the gross cost is estimated at £18,465, divided by the number of private hire/hackney carriage drivers (101) = £183.

  1. What is the cost to the council for issuing a private hire/ hackney carriage plates?

For 2009-10, the gross cost is estimated at £41,745, divided by the number of private hire/hackney carriage plates (249) = £168.

  1. I would also like to see a break down of the yearly budget for each of the last 10 years?

The budget has been broken down into:

  • Expenses – these are the day to day running expenses for the licensing function;
  • Recharges - work performed for licensing by other departments.
  • Income is shown separately.
  • Expenses + Recharges = Gross budget

As you can see from the breakdown provided, recharges have steadily increased up to 2009-10. In previous years the recharge costs would have been ‘under represented as essentially the rest of the council provided a subsidy to the licensing function. Our accounting methodology has improved to ensure recharge costs are a reflection of the true cost of services being utilised by the licensing function.

The Best Value Accounting Code of Practice (BVACOP) 2006 states that “the majority of central support services such as finance, internal audit, personnel, IT, legal services, procurement, etc. should be charged, allocated, or apportioned to the service divisions defined in the Service Expenditure Analysis”.

If you are dissatisfied with the handling of your request, you have the right to ask for an internal review. Internal review requests should be submitted within two months of the date of receipt of the response to your original letter and should be addressed to: Freedom of Information Officer, Civic Centre, Windmill Street, Gravesend, Kent, DA12 1AU., or email .

If you are not content with the outcome of the internal review, you have the right to apply directly to the Information Commissioner for a decision. The Information Commissioner can be contacted at: Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF.

Yours sincerely

ChristinaHills

Senior Licensing Officer