Agenda item

Report attached.

Councillor Steven Smithson, Portfolio Holder for Environmental Services, provided a report seeking approval for a proposed increase in allotment rent charges from the 1^st January 2024.

Councillor Smithson outlined the main elements of the report.  It was proposed that the allotment rent charge be increased from 24p/m² per annum to 25p/m² per annum (4.2% increase) from 1^st January 2024.  In order to make the change 12 months’ notice needed to be given.  The increase would maintain the service on a cost neutral basis to the Council.  The increases were considered to be reasonable when compared to neighbouring authorities, such as Blackburn with Darwen and Burney Councils.  The Leader also highlighted some issues including the tenants’ preference for small regular increases, historically low rents, recent site improvements and the lack of objections from the Hyndburn Federation of Allotments.

Councillor June Harrison asked if there was a waiting list for tenancies.  Councillor Smithson believed this to be the case, but the matter would be clarified as information was due to be reported soon to Overview and Scrutiny.  A written response would be provided to Councillor Harrison.  Councillor Kate Walsh, Joint Deputy Leader of the Labour group, asked how long the waiting list was and whether new allotments could be created via the Local Plan process, to avoid over-development of urban areas and to improve the green environment.  The Leader responded that there were already designated sites for allotments, which included some private sites near the Dunkenhalgh Hotel and some sites transferred to Altham Parish Council.  However, to increase this number would require additional land to be purchased by the Council and require changes within the Local Plan which could not easily be implemented until the next plan in 2037.

Approval of the report was deemed a key decision.

Reasons for Decision

It was recommended that from 1^st January 2024 the allotment rent charge be increased from 24.0p/m² annum to 25.0p/m² annum (4.2% increase). 

The allotment rent increment 2025 onwards would be considered in subsequent Cabinet reports during 2024, at a time when the increased inflationary pressures on the Council’s service costs were known.

During 2012 the Council had consulted with the allotment tenants.  83% of those responding had said that rent should be increased regularly in small amounts rather than a single large increase at irregular intervals. 

Since 2014 the Council had progressively increased the allotment rents in small annual increments to ensure that the annual rate of increase was kept reasonable.  A list of annual rents charged per m² and the minimum charge regardless of plot size, for the period 2014 to 2024 was set out in the report,

Prior to 2014, the allotment rents had not been increased since 2006 and were amongst the lowest in England (data supplied by the National Allotment Society).  Between 2006 and 2014 the annual allotment rents were charged at an average of 7.5p/m²

The Council had a legal duty to notify tenants 12 months in advance of an allotment rent increase.  To facilitate the 1^st January 2024 rent increase, allotment tenants would have to be advised by the 31^st December 2022.

The Councils allotment service was operated ‘cost neutral’ ie. without profit.  Having taken into account inflationary pressures for 2023-2024, and increased Council costs, the recommended rent increase would enable the Council to continue to provide the present ‘cost neutral’ service level.  The Council’s allotment related costs had been estimated to increase by 4.88% for 2023 to 2024.

The Allotment Act 1950 stated that an authority might charge such rent as a tenant might “reasonably be expected to pay”.  The recommended rental increase had taken account of all of the following factors:

• Comparison with other neighbouring Local Authorities;
• Comparison with other local recreational activities;
• National Allotment Society Policy Document 103. Rents; and
• Consultation with the Hyndburn Federation of Allotments.

Comparative information for 2019 was reproduced in the report, which had been supplied by 12 allotment authorities attending the North West Allotment Officers meeting held on the 16^th October 2019.  Information was also provided about rents charged in 2022 in Blackburn with Darwen and Burnley.  There was a high degree of variability in the amount of allotment rents charged amongst local authorities and parish councils.  It was evident that a number of local authorities had not increased their rent for several years, others were using self-managed options to keep costs down, whilst others provided a far greater range of direct allotment services, including toilets, and similar.

The average 2019 rent charged (excluding Bury) was 26.2p/m², whilst the 2022 average of Blackburn with Darwen and Burnley was 28p/m².  The allotment rent charged by Hyndburn remained year-on-year below average and extremely favourable when compared to the rents presently charged by Hyndburn’s immediate neighbours Blackburn with Darwen and Burnley.  It was reasonable to conclude that the proposed rent increase was consistent and below average when compared to other local authorities.

There were no local recreational activities which were directly comparable to the allotments.  The Council had introduced rents for the use of football pitches and bowling greens, set at an incremental rate to ensure that the use of the facilities became cost neutral.  The increase in allotment rents had followed the same trajectory.

The National Allotment Society had produced Policy Document 103 – Rents.  The National Allotment Society recognised within its Policy the significance of rent to the allotment provider as an income, and further added that rents would have to be reasonable and set in accordance with the legal requirement.  When considering NAS Policy 103 the Council had taken the following into account:

• The long-term financial sustainability of the allotments;
• The nature, quality and cost of facilities provided, including the cost of maintenance; and
• Expenditure on management and administration.

With reference to the NAS Policy 103, it was reasonable for the Council to make the allotment service cost neutral.  The demand created on the service had established the management cost to the Council, and therefore through necessity the level of rent charged onward to the allotment tenants.

Further information on the relevant legislation, case law and procedures was set out in the report.

Alternative Options considered and Reasons for Rejection

No rent change or reduced rate of rent increment:

Owing to inflationary pressures and increased Council costs, the allotment service would become under-funded during 2024 resulting in the need to achieve cost savings.  In this event the allotment service would reduce its ability to undertake functions in compliance with its management role and that described within the allotment tenancy agreement.

In officers’ opinion, there were no other reasonable alternatives.  Officers recommended that the options of no rent change, or reduced rent increment, be rejected on the grounds that the allotment service would have to continue to provide a cost neutral, effective and efficient service in its present format.  The recommended option was reasonable and would ensure that the allotment service continued to provide the level of service expected by allotment tenants.

Resolved                                    -    Cabinet approves the increased allotment rent charges from 1^st January 2024 as set out in Paragraph 3.1 of the report, allowing for the statutory notification period, as noted in Paragraph 3.5 of the report.