Agenda Item AOB Date: 26 June David Evans, Associate Director of Estates and Facilities

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1 Trust Board Agenda Item AOB Date: 26 June 2013 Title of Report Purpose of the report and the key issues for consideration/decision Prepared by: Name & Title Presented by: Action Required (please X) Strategic/Corporate Objective(s) supported by this paper VISITOR AND STAFF CAR PARKING CHARGES This report has been produced following a review car parking charges which have not changed since 2009/2010 and reflect the investments which have been made and to make recommendations for a number of changes which simplifies the system and achieves an anticipated income increase of circa 100k pa in visitor income and also mitigates the impact of VAT relating to staff charges. David Evans, Associate Director of Estates and Facilities Silas Nicholls, Deputy CEO / Director of Strategy and Planning Approve X Adopt Receive for information Quarterly and full year FRR of 3. Achieve Service Transformation (CIP) targets Is this on the Trust s risk register? No Yes X (BAF) If Yes, Score 20/20 Which Standards apply to this report? CQC NHSLA BAF Objectives 13/14 WWL Wheel Strategic Priority Respecting and involving people who use services Safe environment As above Investment / information Have all implications related to this report been considered? Finance Revenue & Capital x Equality & Diversity National Policy/Legislation Patient Experience x NHS Contract Governance & Risk Management x Human Resources Terms of Authorisation Consultation/Communication x Human Rights Other: Carbon Reduction Previous Meetings Please insert the date the paper was presented next to the relevant group Meeting Point Audit Quality & Safety Finance & Investment Management Board IM&T Strategy HR NED Other Na. Na. Na. Na. Na. Na. Na. Governors

2 CAR PARKING CHARGES TRUST BOARD MEETING - 26 JUNE INTRODUCTION Visitor and staff car parking charges have remained static since 2009 and 2010 respectively when a revised system of charging and charges was agreed by Trust Board. Since then the Trust has invested over 1.5m in additional car parking and it is considered to be appropriate to review car parking charges and increase these to support the investment and ongoing revenue costs. 2. VISITOR CAR PARKING 2.2 BACKGROUND The Estates and Facilities Division identified the need to review car parking charges across the Trust and have been exploring various options following discussions with the Executive Team when the paper titled "Car parking charges update" was presented at Meeting Point on 25 March Subsequent to this a revised paper which set out a range of options to increase visitor car parking charges which will be as fair and equitable across the board was discussed at Meeting Point on 13 May Subsequent to this a paper was presented to the Council of Governors on 17 June 2013, where a number of minor changes were proposed prior to approval in principle being given. 2.3 CURRENT POSITION The current charging arrangements were implemented in 2009 following extensive consultation with the Trust Board and are based on staged hourly rates as follows: Stay Hours Tariff 0 to to to and above 4.00 The Trust does already operate a number of concessions which are in addition to those identified in HC11 Help with Health Costs : Any oncology patient who attends the Trust for frequent regular treatment will receive free parking for the length of their treatment. This criterion was agreed by Macmillan Cancer Support Any patients attending clinics at the Trust for a minimum of one day a week for an extensive period will receive free parking. Visitors of patients hospitalised for more than 2 weeks (14 days), will be offered free parking for the remainder of the patient s stay from day 15 onwards. End of life and ITU patients relatives receive free car parking at the discretion of the Ward Manager. The total income based on the above criteria for 2012/13 was 748,000.

3 Over the last two years the Trust has invested in excess of 1,500,000 in improving its car parking and access arrangements. The majority of this investment has been in the purchase of Mesnes Terrace car park and improvements at the RAEI, as a result of which significant additional patient/visitor car parking spaces were released with the priority being given to disabled parkers. 2.4 PROPOSED INCREASE A number of options have been reviewed by the Estates & Facilities Division following discussions with the Executive Team at Meeting Point and the preferred option is detailed below: Stay Hours Proposed Tariff 0 to to Over The key points to note are: This will be the first increase in charges since Significant investment in improvements made during the last two years. Charges compare favourably with other local Trusts and will have the second lowest charging tariff after Whiston Hospital in Merseyside. The maximum charge is comparable with Salford and cheaper than Whiston. Estimated to generate increased income of circa 100k FYE. Simplified system of charges with round numbers to ease payment. Informal discussion with a small number of Governors who have previously been involved in car parking, confirmed the view that the Trust should not subsidise car parking at the expense of clinical services, we should improve our communication of concessions and we should brief key groups such as the Access before implementation. 2.5 CONCLUSION Car parking charges for visitors should be increased in line with the proposal set out above. Appendix 1 shows the current car parking charges being levied by surrounding Trusts for comparison purposes: 1. The current tariff being charged by WWL is the lowest minimum charge of local Trusts. 2. The proposed charges will still be competitive with other surrounding Trusts. We will be implementing further investment in improved car parking by introduction of a pay and display machine replacement programme over the next two years with priority for 2013/14 being given to the RAEI site. The latest generation of these machines will give change and may also allow for card payments to ensure maximum flexibility for our visitors and support future changes in tariff. In addition we are also exploring the feasibility of creating additional parking capacity at both Leigh, Wrightington and TLC sites.

4 2.6 RECOMMENDATIONS 1. The Trust Board are requested to give their support to the proposed increase in visitor car parking charges as outlined in the report above. 2. charges to be implemented from mid July Develop a communications plan which clearly articulates the improvements and investments undertaken and briefs key groups such as the Access in advance. 3. Pay and display machines to be replaced on a phased programme to resolve issues of change, alternative payment methods and DDA compliance. 4. Estates and Facilities will continue to identify ways of providing additional visitor car parking capacity at Leigh, Wrightington and the TLC to further improve our patient experience and access. 3. STAFF CAR PARKING 3.1 BACKGROUND Staff car parking charges have remained static since During the intervening years staff have benefited from the investment in the provision of improved car parking. In the last year the Trust has been faced with significant cost pressures around staff car parking with the two major impacts being the decision by HM Revenue and Customs to charge VAT on staff car parking charges and a significant increase in the rent for Water Street car park by Wigan Council. 3.2 CURRENT POSITION The VAT situation came to light part way through last year and at that time it was agreed that the Trust would absorb the part year impact of the increase. The proposal by Wigan Council is to increase the Water Street car park rent over the next 3 years. The modest increase of 2% last year was absorbed by the Trust, however this year s increase is 13% and next year a 60% increase is planned. The Trust has negotiated a discount due to the number of spaces which we lease and will be pursuing this further with the Council. 3.3 PROPOSAL In the current financial climate it is no longer possible for the Trust to absorb such pressures, however we have been very keen to explore ways in which the increase which we pass on to staff is mitigated as much as possible by working in partnership with Staff Side. The good news is that in conjunction with colleagues in Finance we have been able to put forward a Salary Sacrifice proposal for all staff which not only allows the Trust to recover the 20% VAT increase but will also give ALL staff who join the scheme a net reduction in car parking charges.

5 A full schedule of these are attached at Appendix 2, however some examples are: BAND CURRENT CHARGE NEW CHARGE WITH VAT NEW CHARGE ON SALARY SACRIFICE TYPICAL ANNUAL SAVING A The above proposal benefits staff in fully mitigating the VAT which is liable and also reduces the overall charge but also benefits the Trust in reduction in its NI and pension contributions. To maximise the benefit for all it is essential that we secure maximum uptake of this proposal. Following discussions with Staff Side and LNC representatives it was agreed that on this occasion an Opt out proposal be adopted on the basis that this reduces staff car parking charges. It was also agreed that a joint communication will be developed which includes a frequently asked questions section to address all of the queries which have been raised. It is important to note that any staff member who wishes to opt out of the salary sacrifice scheme can do so on the basis that they pay the increased rate which includes VAT at 20%. 3.4 CONCLUSION AND RECOMMENDATION. This proposal delivers a win win for both staff and the Trust and it is therefore recommended that the Trust Board fully supports the proposal and the formulation of a joint communication for implementation as soon as possible. David Evans, Associate Director of Estates and Facilities, 17 June 2013.

6 Appendix 1 Table showing comparison of visitor car parking charges Bolton 0 to 4 hours to 6 hours to 24 hours - 4 Chorley/Preston 0 to 6 hours Minimum charge Maximum charge Minimum charge - 2 Maximum charge - 4 Salford 0 to 3 hours to 4 hours to 6 hours to 8 hours Warrington 0 to 4 hours Over 4 hours Minimum charge Maximum charge Minimum charge Maximum charge Ormskirk 0 to 2 hours to 4 hours to 8 hours Over 8 hours Minimum charge Whiston 0 to 3 hours to 6 hours Over 6 hours Minimum charge Maximum charge Maximum charge WWL 0 to 1 hours to 2 hours to 3 hours Over 4 hours Minimum charge WWL Proposed 0 to 2 hours to 4 hours Over 4 hours Minimum charge Maximum charge Maximum charge

7 Appendix 2 Table showing impact of proposed salary sacrifice on all pay bands, based on mid scale point. 10 pass holders 15 pass holders Charge on Gross Gross A A B B C C D D pass holders 30 pass holders Charge on Gross Gross A A B B C C D D

Agenda Item 7 Date: 30 November Rob Forster, Director of Finance & IM&T. Approve Adopt Receive for information

Trust Board Agenda Item 7 Date: 30 November 20 Title of Report Finance Board Report Month 7 Purpose of the report and the key issues for consideration/decision To update Trust Board on the monthly financial