Agenda item

LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on to write the report, which do not contain exempt information and which are not published elsewhere)

Contact Officer, telephone number and email: Duncan Ellis, 01263 516330, duncan.ellis@north-norfolk.gov.uk

The DFR introduced the report an informed Members that it was yet to be discussed by Cabinet, and the Committee were asked to consider the options to make recommendations on a key income source for the Council. It was noted that forecasted budget deficits created pressure to increase funding streams where possible, to strengthen the Council financial position. The DFR stated that there were significant costs required to fund the discretionary services that supported tourism in excess of £2m, whilst parking charges had not been increased since 2016. He added that it was therefore appropriate to consider whether charges could be increased to help address the Council’s financial sustainability. It was noted that the Council’s inflation also stood at approximately £1m per year, which placed further pressure on the budget. The DFR stated that at present, car parking income amounted to approximately £1.6m, with charges payable from 8.00am to 6.00pm across three tariffs including coastal, resort and standard. He added that the majority of parking income was generated by coastal car parks on a seasonal basis, with limited free parking available in some inland market towns to support businesses. The DFR summarised existing ticket and payment options, and noted that any changes would require a statutory parking order to ratify the changes.

Questions and Discussion

       i.          Cllr P Heinrich noted that it was regrettably clear that prices had to rise to account for the impact of inflation, however he felt that the increases should not exceed the CPI inflation rate, as residents were already suffering from cost of living increases. He added that tourists must contribute to the cost of services, and noted that North Norfolk charges were lower than many neighbouring areas, and it was therefore reasonable to consider increases of 25-30% during peak season. Cllr P Heinrich suggested that he would also like to see parking charges remain low in market towns to help businesses, whilst he was supportive of season tickets increases in-line with CPI inflation, so long as they were only available to residents. He added that evening parking should remain free in market towns, alongside consideration of free Sunday parking to better support hospitality businesses.

      ii.          Cllr T Adams stated that he was in favour of reasonable price increases tied to CPI inflation, and suggested that these should be focused on high tourism areas. He added that there had been a notable increase in the use of Council services during the Pandemic, and it was clear that this had created additional cost pressures that had to be covered. Cllr T Adams stated that he was encouraged to see strong usage of free short stay parking in Stalham and North Walsham, with hopes that this would be retained. He added that overall the strategy needed to focus on the customer experience, with technology such as ANPR and app payments to address long wait times for ticket purchases. It was noted that Cllr T Adams was also supportive of residential season tickets, retaining free night-time parking, and improving electronic signage between car parks. In response to a question from Cllr T Adams it was confirmed that other income and rentals related to sections of car parks used as site compounds for developers, with a rent charged based in lost parking revenue. The DFR added that it was a fairly inconsistent income, as it was dependent on local development within close proximity to the Council’s car parks.

     iii.          It was confirmed in response to a question from Cllr S Penfold that car parking inspectors and wardens were contracted employees from BCKLWN. Cllr S Penfold asked whether this remained cost-effective, or whether this service could be brought in-house. The DFR replied that the contract had been in place for a number of years and BCKLWN were able to provide a an efficient service as their wardens covered a number of districts, as well as the on-street parking enforcement across the County, with back office arrangements to support this. He added that any contract that came up for renewal would be considered alongside alternate options, in which case ANPR could be considered, though legislation precluded local authorities from using this technology, and it would require the establishment of a separate company. In response to a question from the Chairman, it was suggested the contract would be due for renewal in approximately two years, though this would need to be confirmed.

    iv.          Cllr T Adams referred Members to the Parking Partnership that met at NCC to discuss on-street parking with a non-voting NNDC representative attending meetings, and suggested he could provide a future update on discussions if desired.

      v.          Cllr A Brown stated that he was pleased to see a commercial approach to the Council’s car parking arrangements, and noted that it had taken too long to reach this point. He added that price increases linked to CPI inflation would be approximately five pence per year, which was low given that this was an opportunity to significantly reduce forecasted deficits. Cllr A Brown asked when any proposed changes would come into effect, and whether these would be in place ready for the tourism season. The DFR replied that the project proposal included a timeline, with any proposed changed planned to be in place for the start of July, ready for the peak tourism season.

    vi.          Cllr P Fisher stated that the Wells area had been extremely busy during the winter season, and he was not concerned that raising prices would deter tourism in the area.

   vii.          Cllr C Cushing expressed disappointment that this was the only commercial proposal available, and noted that the proposals to employ two further officers for car parking management would diminish any additional income gained.

  viii.          Cllr V Holliday stated that she was unsupportive of seasonal increases as it was evident that car parks were busy year round in coastal areas. She added that there were also differences between towns, and whilst free Sunday parking might be acceptable in some areas, it would not be financially viable in Holt as this was a particularly busy day. The DFR stated that he would respond via email on EVCP income, to a follow-up question from Cllr V Holliday.

    ix.          Cllr J Toye stated that there were many factors that determined how and where people parked, and it was unlikely that increasing charges would have a negative impact on visitor numbers. He added that greater efforts should be placed on directing tourists to the correct car parks with better signage.

      x.          Cllr H Blathwayt asked whether any comparison had been made with privately operated car parks that could be used to inform price increases. The DFR replied that there had been no full comparison or dialogue previously, though significant providers such as Holkham Estate were included in the report for review. He added that the market for private parking was reasonably limited in all but a select few areas.

    xi.          Cllr L Shires noted that a quick calculation with CPI linked price increase over the last five years would have equated to approximately £1.5m of additional income for the Council, and suggested it was necessary to for price increases to offset the cost of discretionary services related to tourism.

   xii.          The Chairman summarised comments and noted that the Committee were generally supportive of option 1B, to recommend seasonal price increases, linked to CPI inflation. He added that the Committee also appeared supportive of option 2, to recommend increases to season ticket prices, again linked to CPI inflation. It was noted that the proposal to establish new posts for car parking management would require a full business case to be properly considered by the Committee.

  xiii.          Cllr T Adams suggested that comments were more complex than the options presented in the report, and asked whether firm recommendations should be made on this basis. Cllr P Heinrich added that it would be helpful to receive a further report before making recommendations. It was confirmed following a request from the Chairman, that any request to bring an additional report to OSC would delay the introduction of any changes beyond the start of the peak tourism season. Cllr P Heinrich suggested that options 1B and 2 should be merged into a recommendation, taking into account the comments of the Committee.

 xiv.          An informal vote was taken on the options outlined in the report with a majority of the Committee in favour of options 1B and 2.

   xv.          Options 1B and 2 with price increases linked to CPI inflation were proposed as a recommendation by Cllr P Heinrich and seconded by Cllr E Spagnola.

RESOLVED

1.     To recommend to Cabinet that consideration is given to increasing car parking charges in-line with the following options:

• Option 1 (b) – consideration of seasonal price increases for coastal car parks with prices tied to CPI inflation from date of previous increases.
• Option 2 – consideration of season ticket price increase with prices tied to CPI inflation from date of previous increases.

ACTIONS

1.     If considered appropriate to progress proposals for additional staff to support car park management and development of new income streams, then a detailed business case be prepared showing net financial and service delivery benefits.