Beach Hut pricing structure – April 2011 – March 2016

 

The Herne Bay Beach Hut Association, the Tankerton Bay Beach Hut Association and the

Council have worked together to agree a new rental pricing structure for April 2011 – March 2016.

 

The pricing structure was proposed and consulted upon in the general public consultation throughout the council’s 2011/12 budget setting process. The new pricing structure addresses some historical anomalies and places the pricing of beach huts on a sounder footing. The agreed pricing structure is based on the principles a – d, below, and the figures are set out in the tables below.

 

Please note: Should the Council’s budget face undue pressure because of the national financial situation then this rental pricing structure may have to be amended before 2016. We do not wish this to happen, but it may be unavoidable and would be done in consultation.

 

  • a) Annual increase: This is equivalent to the local Council Tax rate plus 1% on all beach hut rentals from April 2011 to March 2016. The increase recognises the need for improved parity between beach huts on Council land and beach huts on private land in the area. All parties accept that Council Tax may vary.

 

  • b) Long Term Discount: This will be reset at a 40% discount of the standard resident rate by April 2016. We’ll achieve this by adding the ‘LTD levy’ set out in table A to long term rentals each year for 5 years. The amount is a fifth of the difference between the standard rent and the rent charged to long term beach hut owners as calculated in April 2011. There may be a need for a one off adjustment for inflation anomalies to reach the desired result by April 2016.

 

  • c) Realignment of rent to reflect measurement by square metre:The Tankerton Bay beach huts are approximately 40% bigger than the Herne Bay Beach huts, so the assumption is that their rental value should therefore be 40% greater – which is not currently the case. We’ll achieve this by adding the ‘M2 levy’ set out in table B to the rentals for beach huts at Tankerton each year for 5 years. The amount is a fifth of the difference between the rent charged for the Herne Bay Huts and the rent charged for the Tankerton huts as calculated in April 2011. There may be a need for a one off adjustment for inflation anomalies to reach the desired result by April 2016.
  • d) VAT: standard rate VAT will apply.

Note council tax is agreed when the Council budget for the next financial year is approved (usually in February each year)


Table A                                 Long Term Discount       

 

LTD Levy

2011-12

LTD Levy

2012-13

LTD Levy

2013-14

LTD Levy

2014-15

LTD Levy

2015-16

One off adjustment subject to inflation April 2016

Herne Bay

£5.73

£5.73

£5.73

£5.73

£5.73

40% of Standard Residential Rate

Tankerton

£9.90

£9.90

£9.90

£9.90

£9.90

40% of Standard Residential Rate

Table B                                 Square metre realignment 40%

Based upon Herne Bay Beach hut as standard and Tankerton as 40% larger

 

M2 Levy

2011-12

M2 Levy

2012-13

M2 Levy

2013-14

M2 Levy

2014-15

M2 Levy

2015-16

One off adjustment subject to inflation April 2016

Resident

£4.76

£4.76

£4.76

£4.76

£4.76

HB as Base  Tankerton as 40% higher

Non-resident

£6.53

£6.53

£6.53

£6.53

£6.53

HB as Base  Tankerton as 40% higher

LTD

£6.06

£6.06

£6.06

£6.06

£6.06

HB as Base  Tankerton as 40% higher