The cost of licences for pavement cafes, extra bins and a range of other permits and provisions have all increased in Reading in efforts by the council to raise income.

The Labour administration at Reading Borough Council has devised a financial recovery plan to address huge rises in budget pressures.

The council's financial team has identified an estimated £5 million budget deficit for the current financial year 2024/25.

To tackle that budget shortfall the council's finance officers devised a number of increases to fees and charges for services the council provides.

A decision on the increases had to be made by councillors, who discussed the changes at a recent policy committee meeting.

Councillor Raj Singh (Conservative, Kentwood) drew attention to the rise in the licence fees for pavement cafes, which take up part of the public space to allow customers of businesses to enjoy food and drinks.

The cost of a new licence has gone from £100 to £500 which he called 'an eyewatering 400 per cent increase.'

Cllr Singh said: "I've just spoken to someone who has a pavement cafe, they make a profit of five per cent on a cup of coffee, which is 30p, if they sell a coffee for £3, for them to recoup this £400 if they go for this, that means they have to sell thousands of more coffees to get back to that cost.

"I think this is an approach which is detrimental to what we want to achieve."

In reply, Karen Rowland (Labour, Abbey), lead councillor for environmental services and community safety said: "The £100 cost was brought in as a result of covid, that was an artificially low number in order to get people out and breathing the fresh air and getting exercise and being out in the open during covid times.

"That £100 fee has continued as we've seen covid come and go, we've gone through the recovery, and we're now at an artificially low cost.

"The government has now said we can raise up to £500, and that is common with many councils.

"What we have done is rated that."

The amount an applicant has to pay is ranked based on the amount of chairs and tables provided.

Premises that have benefited from the lower rate include O'Neill's, Paul Bakery, Costa Coffee, Zia Lucia and numerous other eateries.

While none of these businesses will have to pay the £500 cost of a new licence, they will still have to pay either the £200 or £350 renewal charges.

Outdoor seating in Broad Street, Reading. Businesses require pavement cafe licences to take up public space. Credit: Google MapsOutdoor seating in Broad Street, Reading. Businesses require pavement cafe licences to take up public space. Credit: Google Maps

The pavement cafe fee was just one of the increases discussed.

The council will also start charging for an additional green waste bin, which are currently free.

The cost will now go up to £75 and £56.25 for concessions.

Only cllr Singh voted against the measures contained in the council's financial recovery plan at the meeting on Monday, October 21.

The new fees and increases come into effect on Friday, November 1.