Licensing and the avoidance of Legal challenges
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Transcript Licensing and the avoidance of Legal challenges
CIPFA NW AUDIT RISK &
GOVERNANCE GROUP
LICENSING
A Guide for Internal Audit
Fees for Licences
CIPFA NW Audit Group
LICENCE FEES
Most Licences attract a fee (notable exception – Caravan Site
Licence)
Different fee regimes:
A set statutory fee (e.g. Licensing Act 2003)
A set statutory fee that can be overridden by the Council (e.g.
Hackney Carriage and Private Hire Licenses under LG(MP)A
1976)
A set maximum fee allowing local variation to achieve cost
recovery (e.g. Gambling Act 2005)
Prescribed Costs to be Recovered (e.g. Hackney Carriage and
Private Hire Licenses under LG (MP)A 1976)
A reasonable fee to be set by the Council
Fees Generally
Cannot use Licence Fees to raise revenue
generally
Must carry forward surplus or deficit
3 year cycle
Different fees – cannot “lump” all licence fees
together
Each charging regime must be separately account
for
Must be able to justify fee levied
“Grant” or “Application”
Is the fee payable on application or grant?
If the latter, must refund (or not levy) if application
is unsuccessful
Challenges to Fees 1
Judicial Review of the Council Decision based on
either –
Ultra vires (no power to levy a particular fee, or fees
used to raise revenue unlawfully), or
Wednesbury (unreasonable, irrational)
Challenges to Fees 2
Can challenge via the District Auditor and the
Council Accounts
Guildford Borough Council in relation to HC and
PH fees – 3 complaints
That the council had no properly advertised that it
was going to charge fees of more than £25
That the council did not keep proper records of
costs and fees for each type of licence
That fees were in excess of costs
What is recoverable?
Local Government (Miscellaneous Provisions)Act
1976
Ensure adoption
Drivers S53 “Issue & Administration”
Vehicles & Operators S70 “vehicle inspections, HC
stands, Administration, Control and Supervision
Drivers
Issue –
The action of supplying or distributing an item for
use, sale, or official purposes
Administration –
The arrangements and tasks needed to control the
operation of a plan or organisation
Issue & Administration
Determination of Application
Application form – fee, processing, photographs
Medical – verification with GP’s
CRB – checking documents, courier costs etc.
Panel Hearings – reports, member services,
Councillors, legal
Computer Inputting
DVLA mandate
Production of paper licenses and badges
Court Appeals
Vehicles
Inspections of hackney carriage and private hire
vehicles; grant or renewal
The reasonable cost of providing hackney
carriage stands
Any reasonable administrative or other costs in
connection with the foregoing and with the control
and supervision of hackney carriages and private
hire vehicles
vehicle and operator fees over £25 must be
advertised – 28 day consultation
Expenditure
Allocation
Direct Staff
Time recording
Activity based
Number of drivers/vehicles
Indirect Staff
% of time apportioned over activity
Expenditure
Activity based
Some easily identified (plates,
MOT’s)
Support Services
•Finance
•HR
•IT
•Offices
Activity based
No of driver/vehicles/operators
•Member Service
Number of panel meetings
Officer Time
Member Allowances (Chair)
Setting Fees
Private
Hire
Driver
Surplus/Deficit
bfwd
X
Expenditure
Y
Required
Income
X+Y
Current Income
A
%
(X+Y) - A
Increase/Decrea
se
Private
Hire
Vehicle/
Operator
Hackney
Driver
Hackney
Vehicle
Accounting
Private
Hire
Driver
B/fwd (+/-)
Income
Expenditure
Direct Staffing
Transport
Supplies &
Services
Support
Services
Surplus/Deficit
Private
Hire
Vehicle/
Operator
Hackney
Driver
Hackney
Vehicle
QUESTIONS
Lynn Anders
Business Advisor
Knowsley Solutions
0151 443 3658
[email protected]
CIPFA NW Audit Group