Brighton beach hut owners could face a new 10 per cent effective sales tax as the cash-strapped council tries to plug a £70m black hole in its budget.
Labour-led Brighton and Hove City Council has launched a consultation on changes to license fees and has proposed charging a 10 per cent transfer fee if they are sold.
The fee would be based on the April selling price and was proposed by councilors instead of increasing the annual license fee of £503.60.
The new rules, if implemented, would also include a restriction on rentals of beachfront lodges.
This comes after city councilor Grant Thornton’s auditors warned the authority needed to make budget cuts worth around £70m by 2027 or it could fall into effective bankruptcy, as Birmingham City Council did. led by Labor last month.
Brighton beach hut owners could face a new 10 per cent effective sales tax as the cash-strapped council tries to plug a £70m black hole in its budget.
Labour-led Brighton and Hove City Council has launched a consultation on changes to license fees and has proposed charging a 10 per cent transfer fee if they sell
The council could be forced to make “politically unattractive or undesirable decisions for the sake of the future viability of the authority”, the accountants said.
The president of the Hove Beach Hut Association, who has owned one since 2015, criticized the plans and said it was wrong to charge owners to sell them as they make no profit after maintaining them and paying council rates. The Argos reports.
She told the local newspaper she was “very angry” and accused the council of thinking the cottage owners “are made of money”, especially as she pays £1,000 a year in rent to the council and a further £1,000 to keep it.
Labor councilor Alan Robins, who chairs the authority’s culture, heritage, sport, tourism and economic development committee, has said the new money could be reinvested in vital services on the seafront, such as lifeguards.
Cllr Robins added that it was “an extremely difficult time for Government finances”.
There are a total of 459 beach huts along the Brighton and Hove seafront which are privately owned by locals.
There are a total of 459 beach huts along the Brighton and Hove seafront which are privately owned by locals.
According to the council, the value of these cottages has risen to a range of £25,000 and £35,000 depending on their location and condition.
Similar transfer fee systems exist in neighboring authorities, including Adur and Worthing.
An attempt to introduce a similar plan was rejected in January this year after residents fought against it.
The consultation is expected to report its results in November.