Agenda item

Report of the Executive Director Environment.

The Committee considered a report of the Executive Director, Environment which outlined the findings of the Building Control’s review into previous fees and charges increases and the recommendations for revised fees for 2023/24.

An Officer reported that this was the Annual Report to Committee to reset the building control charges taken for applications under building regulations. He informed Members that under CIPFA guidance, charges set should equate to the costs to provide the service. The current charge was £115 per hour and the revised figure was £126. However, as the guidance stated that over a five-year period there should be a zero budget and as the service had run at a deficit of £342,000 since 2018/19, it was proposed to increase the charge by 20% to £152 per hour.

An Officer informed the Committee that many large schemes lasted several years and therefore setting a 20% surcharge now would enable the five-year deadline to be met. As there was an annual report to Committee, if the requirement was being exceeded, and with the Committee’s agreement, the surcharge could be dropped at a later date.

A Member asked whether the costs, for schemes that would take a number of years, were set at the start of the scheme or at the time the work was undertaken. An Officer reported that the estimated fees were based at the rate at the time the estimate was given. However as of April 2023, a quarterly review of fees would be introduced for large schemes.

Following a question from a Member, an Officer advised that the fees undertaken through the hub approved by Committee in January 2023 would be at the rate approved by Committee.

A Member asked if the fee had been benchmarked and was advised that all London councils had submitted hourly rate figures to the Building Services Regulator. The City’s figures were broadly in the middle of the figures provided.

In response to a Member’s question about how fees were estimated, an Officer stated that every project surveyor completed timesheets and records had been kept for several years. When a project of a certain value was submitted, it was possible to use these records to ascertain the number of hours it was expected to take.

In response to a Member’s question, an Officer stated that the City of London Corporation had a statutory duty to enforce building regulations and would continue to do this until each job was complete. Public safety was the number one objective.

The Chairman commented on positive feedback from the market about the service provided by the District Surveyors.

RESOLVED - That the Committee approve Option 3 and agree a new “City of London Building Regulations Charges Scheme No 6: 2023”, and a “Building Control Miscellaneous Charges No 5: 2023” based on a new rate of £152 per hour.