Content

8.1

To set out a proposal
to review the service charge recharged to traders at the Moor
Market and the reasons why officers consider this needs to be
implemented.

 

 

8.2

RESOLVED
UNANIMOUSLY: That the Waste and Street
Scene Policy Committee:
 

1.    
approves an increase to the service charge currently
charged to market traders of CPI+8% (an increase of
14.8%);
 

2.    
approves a period of 12 weeks from the decision
being taken to the implementation of the new service charge;
and
 

3.    
agrees that further service charge reviews should
take place annually for officers to make proposals to the Committee
for moving towards full cost recovery or if necessary, proposals
will be brought to maintain the service charge at that rate at the
time of the report or reduce the service charge.

 

 

8.3

Reasons for Decision

 

 

8.3.1

The option outlined in scenario
5 (CPI+8%) provides a reasonable increase to the service charge
that enables the Council to move towards full cost recovery whilst
allowing time to assess the impact of the increase on traders,
given that the service charge has not been increased in a number of
years.

 

 

8.3.2

The Market Traders provide a
valuable service and a service charge above CPI+8% may impact on
occupancy levels or result in costs being passed on to
customers.

 

 

8.4

Alternatives Considered and Rejected

 

 

8.4.1

The option to do nothing
(scenario 1) has been rejected by officers due to the unsustainable
nature of the increasing subsidy required on operational
costs.

 

 

8.4.2

The option to move straight to
full cost recovery (scenario 9) will be too much of an impact on
the tenants. It’s likely to create significant cost pressures
that are too large to pass straight on to customers and may
increase the markets vacancy rate, which will negatively
financially impact the budgets for service charges and rents.
Overall, it could undermine the financial position rather than
improve it.

 

 

8.4.3

Other models of recharging the
service charge such as a service charge only tenancy agreement are
options that require further work that has not been possible to
complete in time to consider for this paper.