b'Supporting tools for charging Define charging principles 1.10 Some local authorities have reassessed how to react to the new charging agenda and one of the first tasks is to determine a set of principles. The principles could be on the following lines: Principle 1For each charge set, the manager responsible for the charge identifies the charging policy/constraint, any relevant legislative provisions and case law applying, overall policy objective and service objectives in order to ensure that charges are in line with these objectives and that there is clarity over the purpose of the charge. Principle 2The default position for any charge is that it takes account of the full direct and indirect costs of service provision and is set at a level which maximises income, taking account of price vs. demand. This will also include setting charges at maximum levels/cost recovery where statutory constraints apply. Where there is an explicit policy objective to subsidise the service, and therefore to deviate from this principle, this reason should be clearly set out, together with the financial consequences of the subsidy, where identifiable. Principle 3Benchmarking information is used by managers to regularly compare their charges against other similar authorities and providers. Where charges differ significantly from other such comparators, managers should be aware and be able to explain the main reasons for such differences. Principle 4Managers identify the nature of discounts/concessions that are in place for services where charges are made; the types of users intended to benefit in terms of the link between discounts/concessions and policy/service objectives; the level of subsidy provided; and that discounts/concessions are regularly reviewed, to ensure that they remain appropriate. Principle 5Charges set are differentiated to fairly reflect the differing demand placed upon service resources and the value provided to the service user. Principle 6Any significant proposed changes to charges are consulted upon with key service users and groups, in order that their views are taken into account. Managers should seek to ensure that they are aware of the potential impact upon differing service users of changes to charges, with any such changes to pricing policies being phased in over time, where the impact is high. Principle 7Charges should be administered to maximise the ease of collection of charges and minimise the costs of collection, considering both the council and service user perspective, in order to optimise the likelihood of payment. It is important that there should be ease of collection and modern transaction methods of payment and booking, particularly in relation to cultural and leisure facilities. Principle 8Managers review all charges for which they are responsible on at least an annual basis as part of the budget process and complete the checklist below to demonstrate that charges have been reviewed on a systematic basis. 16'