Fees for vessels for using a harbour River Hamble’s harbour will increase by a “modest” five per cent to cope with the rise in National Insurance.
This year, for a 12.2-metre boat owner, the increase in annual fees, known as harbour dues, will be from £257.72 to £270.61, an increase of £12.87.
Last year, the decision was made to increase harbour dues by four per cent to offset incremental pressures in the forward budget, principally due to salary increases.
These increases include higher pay awards of about £1,925 for each full-time employee in both 2022/23 and 2023/24, plus an additional one-time National Insurance contribution of £12,000 from last year.
Despite being a “correct” decision, the pressure remains.
Any increase in harbour dues does not provide its full benefit in the same financial year since only a quarter of the benefit from any approved increase can be used in that year’s accounts.
According to the report, the need for a higher salary budget has become “unavoidable”, leading to increased pressure on overall expenditures that are unrelated to wages.
The income generated by the harbour authority comes primarily from harbour dues, fees from the Crown Estate Management Agreement, and variable income from visitors’ fees, unplanned commercial traffic, and miscellaneous charges.
This year, the renegotiation of Crown Estate management fees has favoured the harbour authority, resulting in an additional £8,000 in revenue.
Another factor involves the continuous drain on the revenue reserve, which is projected to drop to £10,500 by March 2026 if no intervention is made, potentially turning negative in the following year.
To address financial challenges, Jason Scott, marine director and harbour master at the River Hamble, said that a significant adjustment to harbour dues is “necessary” to ensure that income and expenditures are balanced.
Therefore, he proposed a five per cent increase in harbour dues.
This increase aims to boost revenue for the current year and also for necessary adjustments in the next financial year.
Looking ahead, the Harbour Authority plans to implement consecutive increases of four per cent in 2024 and five per cent this year, with any necessary adjustments in 2026 to address the significant and temporary salary pressures.
For instance, this year, a 12.2-metre boat owner will see an increase in annual harbour dues from £257.72 to £270.61, resulting in a rise in £12.87.
Mr Scott said: “It is an increase that we have to recommend to the board to accept because we are trying to grab to the bottom of the revenue reserve to make sure it doesn’t migrate into the AER [Asset Enhancement Reserve].”
Cllr Philpot said that the five per cent increase is “modest” and “in line with previous years,” especially for the services offered.
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