A HIKE in fees charged for building projects was required to meet a budget shortfall due to a downturn in construction activity. 

Monmouthshire County Council upped the building regulation fees it charges those carrying out construction work by 10 per cent in June. 

Fees have to be paid when building regulation applications are submitted to the council and the fees in Monmouthshire are based on the overall floor area of the work or the estimated cost. 

For one new home a charge of £1,035, without VAT, has applied since the price increased in June while extensions can incur charges of up to £828 and loft conversions £690. 

The cash is paid into a reserve which due to accounting rules that apply to all local authorities are required to break-even over a three year rolling period. 

Monmouthshire’s fund was in deficit by £2,838 at the end of the 2022//23 financial year and, in May last year, future income was expected to fall by £23,000 over the year due to a downturn in construction activity. 

As a result the council increased the fees by 10 per cent which a report said would generate an additional £37,000 on a total, expected income, of £370,000 so the rise would “be sufficient to cover off any trading deficit”. 

Though fees increased from June 1 a formal decision to increase them is only due to be approved by cabinet member Paul Griffiths on March 13.  

The decision report states a determination will be made at the end of the financial year on whether the council has fully recovered the cost of the fees it is allowed to charge, with any balance moved into the fund.  

“This balance will dictate if there will be any further increase in fees required in 24/25 financial year.”