Decision Details

4. Financial Implications

 
4.1. The proposed fee increase will provide additional revenue to cover rising operational costs.  This will help to maintain the current level of service offering any extra promotions at our discretion to utilise our assets.

4.2. Without this CPI increase in fees, there is a risk of increased operational costs annually, moving forward year on year we can publish the prices on the website rather than waiting for approval of the next years costs.

4.3. For context, if a CPI of 3.8% is applied to Casual Hire (website) revenue for 2026 (based on 2025 booking levels) the increase in revenue would be £2.5k. 

4.4. Impact on customers for the leisure commodity offered by this service area is deemed equitable, with some examples below based on 3.8% CPI increase:

Casual Weekend hire of Seashore accessible beach chalet 
2025 £65.00   with CPI £67.50

Casual Week hire of Eastern Edge hut in July/August
2025 £100.00 with CPI £104.00

Casual Week Lowestoft brick beach chalet in July/August
2025 £82.00 with CPI £85.10

Lowestoft annual licence brick chalet
2025 £806.40 with CPI £837.10

Lowestoft annual site only licence 
2025 £624.75 with CPI £646.62

The options to consider included:

7.1.1. No fee increase – this would limit revenue growth and potentially risk the quality of service provided at the sites as inflation increases the costs that the sites are exposed to.

7.1.2. A fee increase of CPI rate - This will ensure that the income rises to offset the inflationary increases in effect on the services delivered at the sites. It will help to maintain financial stability and keep visitor services affordable.

That Cabinet:

1. Approved the proposed fee increases based on the Office for National Statistics (ONS) CPI rates, to be implemented from 1 April 2026 based upon the September 2025 CPI which is 3.8%

2. Granted delegated authority to the Strategic Director, in consultation with the Cabinet Member for Corporate Services, to increase fees and charges each year in April, in line with the preceding September’s CPI rate.

3. Grants delegated authority to the Strategic Director, in consultation with the Cabinet Member for Corporate Services, to draft and approve a revised pricing structure to provide more uniform options across the area for the hire of beach huts.