Public Sector: Fees and Charges
The question
To ask the Chancellor of the Exchequer, what comparative assessment she has made of the effectiveness of the (a) cost-recovery model for statutory fees and charges and (b) use of such fees and charges as a demand-management tool.
Answered by James Murray
Proposals to introduce new fees or charges are considered on a case-by-case basis. Government departments develop proposals in line with their needs and policy intent, underpinned by the rules in Managing Public Money (https://www.gov.uk/government/publications/managing-public-money).
Full cost recovery is the standard approach to the setting of fees and charges for public services.
If a department were to incorporate demand management as a policy objective when devising a fee or charging scheme, this would be considered as part of assessing the proposals.
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