Shropshire businesses' pavement permit costs more than doubling

Shops and businesses have been used to paying £50 for a permit to display goods or other items on the pavements outside their buildings.

But complaints were received earlier this year, when the cost rose to £413 for a new applicant, or £311 for a renewal.

Now Shropshire Council’s Place Overview Committee is set to be asked to give its verdict on a proposed new cost of £213 for a new permit, or £111 for a renewal.

The proposed cost rise will be in place for the remainder of this financial year when it will be reviewed again.

A report to the committee says four businesses complained about the rise – including one which “led to significant local media coverage”.

Rachel Robinson, director of public health, says in her report: “There were concerns about the growing level of obstruction of the pavements and the associated increasing risk to public safety.

“A pavement permit scheme is not, of itself, a statutory duty of the council.

“However, the council does have a statutory duty to maintain pavements in a condition that is fit for pedestrians using them.

“A pavement permit scheme is one method by which the council can demonstrate that it has taken steps to satisfy this statutory duty.

“Without a pavement permit scheme, businesses face potential criminal sanctions for obstructing the highway and, in the event of accidents/injuries caused by obstructions, claims for compensation from members of the public may be made against these businesses.

“Injured parties may also claim against the council where it can be demonstrated that the council has failed to ensure the highway is not obstructed.

“Based on local claim data, the likelihood of such claims is very low; however, the consequences can be severe.”

Obligations

She added: “From April 2011, charges for pavement permits were set at £50 for both new and renewal permits.

“During 2016, it was recognised that additional work was being undertaken in advance of granting permissions to ensure applicants fully understood the obligations placed upon them.

“However, it then followed that the £50 charge for a new permit no longer adequately reflected the work undertaken.

“As a result, initial financial analysis was undertaken, which resulted in the charge for a new permit being determined at £135; this was introduced from April 2017. The charge for renewing an existing permit remained at £50.

“The revised charges for 2019/20 were proposed in the council’s annual fees and charges reports and were approved by cabinet and council in February 2019.

“Enquiries/challenges were received by the council from four businesses (one of which led to significant local media coverage) out of 18 that received notification that their pavement permits were due to be renewed in the period from April to June 2019 and that they would be liable to pay the revised higher charge.

“This, in accordance with the council’s charging policy, led to a decision made by directors and portfolio holders to revert to the 2018/19 fees with immediate effect.

“Whilst there were four enquiries/challenges, there were also three licensed public houses, located in Shrewsbury, Bridgnorth and Market Drayton, that paid the increased charges (two renewal applications and one new application) and did not raise any concerns.

“In the interests of fairness, refunds have since been authorised to these businesses to ensure they will pay the lower charges in 2019/20.

“Nevertheless, this is evidence that certain businesses in three market towns were prepared to pay the increased charges that had been agreed by the council.

“There appears to be recognition by these businesses that a pavement permit adds value to their business offer; this added value is enhanced when it can be demonstrated that the permit is properly granted and regulated by the council. It is not unreasonable to consider that other businesses would also pay the higher charges.”