Are skip hire permit price increases by some London councils justified?

Local councils have increased charges for skip permits and bay suspensions by over 500% in some London boroughs.  

Since charges increased in April 2016, the cost of placing a skip on a public road or in a resident’s parking bay has risen dramatically.

By our calculations, the monthly cost of hiring a skip through Merton Council, our local council, has increased by 527% since April. Similar price increases have occurred at Hammersmith & Fulham Council.

If a customer wants to hire a skip for a month through Merton Council, the cost now amounts to £760 for a licence. This final cost includes skip permit and tax charges, bay suspension charges and landfill tax. This compares with 2015, when the same service would have cost only £144. This is a 527% increase.

[I suggest here including a primary quotation, ideally from a Proskips customer who has had to hire a skip since the charges increased, and how it affected them etc]

In addition to the higher costs for bay suspension parking, there is evidence the number of resident parking bays in London has increased, providing a further boost in revenue for councils.

Location can influence the cost of skip hire, with the highest prices in London and the Home Counties. Yet the increased costs are proving extortionate for the end customer.

Fly-tipping continues to be an issue, both in urban and rural parts of the country, but skip hire price increases only threaten to exacerbate this issue.

Will the cost of hiring a skip trigger an increase in fly-tipping? Will smaller skip hire companies be forced to close through loss of business? Will the industry fall victim to more unscrupulous activity? We can only wait and see.

Despite this, local councils made no attempt to consult the industry before implementing the extra charges.

Legally, to place a skip on a public road, a licence permit must first be obtained from the local council. Skip licences are only issued by the council to skip hire companies – they will not be issued directly to a builder or a resident. Only when the licence application has been approved by the local council, and a licence issued, can a skip be placed on a public road or ‘highway’.

As skip hire companies have to register with the local council and pay the council directly, we are generating capital for the council and boosting their revenue yet receive no commission nor benefit for doing so.

So are skip hire permit charge increases justified? We say no. Local councils are benefitting in terms of increased revenue, yet it is the end customer who is suffering the most. Meanwhile, skip hire companies like ours are made to look greedy, yet in reality profits are minimal. The spiraling cost of skip hire may lead to a decline in business for skip hire companies and, ultimately, the closure of some businesses.

As a result of all this, we’re calling on local councils to reverse their decision to increase charges for skip hire permits and bay suspensions. And we mean business. We’ve scripted an online petition [link to relevant petition page] to raise awareness of this issue, and to allow other skip hire companies the opportunity to voice their thoughts. Ultimately, this is an issue we feel needs to be heard by Government and Parliament.

If you would like to hire a skip in Croydon, South Croydon, Sutton, Wimbledon, Clapham, Wandsworth or Streatham, get in touch with us today.