b'A local authority can only charge where it is exercising a discretionary function, ie where the authority has a choice whether or not to undertake the service at all. A great many local authority functions are discretionary in nature. Examples include services relating to adult education, pest control, concessionary travel passes, graffiti removal, residents, parking permits and welfare rights representation. A local authority must only recover costs, not make profits through charging (see below). Other charging powers and associated limitations on those powers specific to a sector will trump the section 93 power and will be the statutory code for charging which the authority needs to follow for that particular service. This remains the case even after the introduction of general competence powers via the 2011 Act. In practice, there are many detailed statutory provisions which have been specifically tailored to a particular local authority activity or sector and which will govern whether or not and, if so, how a local authority may impose a charge for specific services. Division B of this work identifies many of these separate statutory charging provisions. Section 93 only assists if there are no existing powers to charge for the particular activity contemplated. The 2011 Act general competence powers also follow the same path and it will remain crucial to research whether there are pre-existing charging powers which govern the function or activity in question. Guidance on charging 3.4 Guidance on how charges under section 93 can be levied (now somewhat ancient) is provided by the ODPM (forerunner of DCLG). This guidance explains how cost recovery charges are set. The Guidance was published in November 2003 entitled General Power for Best Value Authorities to Charge for Discretionary ServicesGuidance on the Power in the Local Government Act 2003. This confirmed a number of points about charging, including the fact that there is no requirement to charge for discretionary services and that it is up to the local authority to decide whether or not to levy charges. The aim of the legislation was to encourage more diverse activitiesnot to create a new income stream from existing provision (a point sometimes missed in practice). Section 93(3) of the 2003 Act requires local authorities to ensure that taking one financial year with another, the income from chargesdoes not exceed the cost of provision. The Guidance refers to the CIPFA Best Value Accounting Code of Practice and offers two options for calculating costs of provision. These are: total cost or total cost plus a contribution for corporate and democratic core costs. The total cost includes employee costs, expenditure relating to premises and transport, supplies and services, third-party payments, support services and capital charges, but excludes central establishment charges. Total cost plus includes all of these costs, but also a share in central establishment charges. Either way, the full cost of provision of the services is included and profit is not mentioned. There is nothing in the Guidance regarding a local authority charging a contingency as part of its budget planning. 47'