Agenda item

Provision of Beach Huts

This report sets out proposals, following a review of BCP Beach hut assets, to harmonise the service offer, provide equality of access for BCP residents and enable new levels of investment in the beach hut offer.

Like all Councils in the UK, due to rising inflationary pressures, BCP Council is having to review its financial position, find new ways to be more efficient in meeting the needs of our communities, ensure cost recovery and income generation. This involves reviewing all our commercial services, including the provision of beach huts.

In September, the Corporate and Community Scrutiny Committee was advised of the decision and reasons for not pursuing the use of a Special Purpose Vehicle (SPV) to commercialise beach hut assets and that the Council would instead develop proposals for changes to the in-house management, harmonisation of prices and policies, and the enabling of capital investment.

BCP Council manages over 3,700 beach huts between Highcliffe and Hamworthy, with annual gross income of circa £7m. Officers have undertaken a review of the differing legacy management and financial arrangements with the aim of harmonising the service, widening access, raising maintenance standards and improving commercial performance. The review has included engagement with key stakeholders including the four Beach Hut Associations.

Decision:

RESOLVED that Cabinet: -

(a) Agreed to allow all BCP residents to join the waiting lists for standard huts/sites;

(b) Agreed the 5-year beach hut pricing strategy set out in Appendix 1a to increase income and harmonise rental and transfer fees;

(c) Agreed to widen use of long-lease arrangements to generate additional capital and support future development schemes;

(d) Agreed to the financial plan in Appendix 1c to invest additional income from rental fees, transfers and long-leases to improve service standards and enable further capital investment in seafront assets;

(e) Noted that the implications of the recommendations above will be included in the Council’s Budget and Medium Term Financial Plan (MTFP) 2023/24 report, due to be considered in February 2023 by the Cabinet and Council; and

(f) Delegated authority to the Chief Operations Officer, in consultation with the Portfolio Holder for Environment & Place, to:

(i) finalise operational changes and harmonise terms & conditions across Beach Hut: licence hire agreements; handbooks; & waiting lists.

(ii) make further changes to the pricing structure and eligibility criteria in response to market demand.

Voting: Unanimous

Portfolio Holder: Environment and Place

Reasons

1. Market demand for beach huts is strong however further improvements are possible by widening eligibility and enabling more people to access the service .

2. Beach Huts are a ‘non-statutory’ discretionary commercial service.

3. The pricing strategy supports corporate commitments to harmonise the different approaches of the preceding Councils and offers a more equitable system.

4. Support the Council’s MTFP position and delivery of the Big Plan and Seafront Strategy using a more commercial approach.

5. Increase service quality by enhancing maintenance to ensure longevity of existing assets, improve the seafront and the overall service to licence holders and local residents.

Minutes:

The Portfolio Holder for Environment and Place presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'H' to these Minutes in the Minute Book.

Cabinet was advised that the report sets out proposals, following a review of BCP Beach hut assets, to harmonise the service offer, provide equality of access for BCP residents and enable new levels of investment in the beach hut offer, and that like all Councils in the UK, due to rising inflationary pressures, BCP Council is having to review its financial position, find new ways to be more efficient in meeting the needs of our communities, ensure cost recovery and income generation. This involves reviewing all our commercial services, including the provision of beach huts.

Cabinet was advised that in September, the Corporate and Community Scrutiny Committee was advised of the decision and reasons for not pursuing the use of a Special Purpose Vehicle (SPV) to commercialise beach hut assets and that the Council would instead develop proposals for changes to the in-house management, harmonisation of prices and policies, and the enabling of capital investment.

Further to this Cabinet was advised that BCP Council manages over 3,700 beach huts between Highcliffe and Hamworthy, with annual gross income of circa £7m, and that Officers have undertaken a review of the differing legacy management and financial arrangements with the aim of harmonising the service, widening access, raising maintenance standards and improving commercial performance.

Cabinet was informed that the review has included engagement with key stakeholders including the four Beach Hut Associations.

A number of non-Cabinet Councillors commented on the proposals. Comments included that the proposals were unfair, that the consultation had not been effective, that the proposed increases above inflation were not acceptable, the differences in the level of increases across bands, what the investment would be used for, the number of beach huts not in use in comparison with the waiting list, sub-letting of beach huts, different types of lets available, and the accessibility to those on a lower budget.

A Cabinet member advised that they were grateful for the dispensation to allow the vote upon this and commented on what could be considered what is fair and unfair in relation to access to beach huts.

Cabinet was advised that the consultation on this and the engagement had been complex and should be carefully considered in making these decisions.

The Leader commented that where a service was being sold if it did not increase in at least with the price of inflation, taxpayers would be effectively subsidising this, which needed to be considered

The Portfolio Holder addressed a number of the comments made and advised that the comments regarding waiting lists would be taken on board in opening the lists along with comments on the marketing of shorter rental length beach huts.

RESOLVED that Cabinet: -

(a) Agrees to allow all BCP residents to join the waiting lists for standard huts/sites;

(b) Agrees the 5-year beach hut pricing strategy set out in Appendix 1a to increase income and harmonise rental and transfer fees;

(c) Agrees to widen use of long-lease arrangements to generate additional capital and support future development schemes;

(d) Agrees to the financial plan in Appendix 1c to invest additional income from rental fees, transfers and long-leases to improve service standards and enable further capital investment in seafront assets;

(e) Notes that the implications of the recommendations above will be included in the Council’s Budget and Medium Term Financial Plan (MTFP) 2023/24 report, due to be considered in February 2023 by the Cabinet and Council; and

(f) Delegates authority to the Chief Operations Officer, in consultation with the Portfolio Holder for Environment & Place, to: