§ The Minister for Local Government, Regional Governance and Fire (Mr. Nick Raynsford)The Government has today published guidance for best value authorities in England on the general power to charge for discretionary services provided in the Local Government Act 2003. Copies of the guidance are available in the Libraries of both Houses. Separate guidance is to be issued for Wales.
The Local Government Act 2003 provides all best value authorities in England and Wales with a new power to charge for discretionary services (section 93). Charges made under the new general power are subject to certain restrictions including a duty to ensure that the income from charges does not exceed the costs of provision.
The guidance offers advice on:
- The scope of the general power to charge for discretionary services;
- Which authorities benefit from the power;
- Discretionary services;
- The limitation to cost recovery;
- Calculating the costs and setting the charge;
- The Competition Acts and the effect on local businesses;
- The power at section 94 to disapply the new power to charge; and
22WS - The power at section 97–98 to modify existing legislation that in some way restricts an authority's ability to charge for the provision of a discretionary service under section 93.
This guidance applies only to the new power at section 93 of the Act to charge for discretionary services and to the related powers at sections 94 and 97–98 of the Act. It is issued under the power at section 93(6). Best value authorities must have regard to the advice it contains when charging for discretionary services using the new power. Copies are being sent to all best value authorities and other interested parties. The guidance builds on the draft published for consultation in March 2003 and takes account of the responses received to that consultation.