Local Authority Building Control Departments (Hansard, 21 July 2004)

§ The Minister of State, Office of the Deputy Prime Minister (Lord Rooker)

The Office of the Deputy Prime Minister (ODPM) and the Welsh Assembly Government (WAG) have liaised with the Audit Commission since the coming into force of the Building (Local Authority Charges) Regulations 1998 in April 1999. The role of the commission is to appoint auditors to local government who then carry out their responsibilities and exercise their judgment independently of the Commission. The Commission has not therefore asked its appointed auditors to specifically identify the use of accumulated surpluses, but it has drawn their attention to guidance issued by the ODPM/WAG to individual authorities on the treatment of surpluses arising. This guidance advises that any surplus of income over costs should either be carried forward to the following financial year and offset against projected future costs (thereby resulting in reduced charges); or it should be reinvested in the quality of delivery of the building control service.

There are no enforcement powers in the charges regulations. It falls to individual local authorities to interpret and apply the requirements of the regulations, to remain within vires and to justify their treatment of any surplus arising. However, the ODPM/WAG will continue to work with the Audit Commission in monitoring the situation and in introducing more transparency in accounting practices and providing further guidance, as appropriate. The ODPM/WAG is also currently giving consideration to proposals for a new local authority building control charging regime with the aim of introducing greater flexibility and accuracy in charge setting.