Business Plan and Budget 2016/17 Consultation

The consultation on the Business Plan and Budget for 2016/17 sets out in detail how PhonepayPlus will work to meet its obligation to ensure consumer protection in the market we regulate. It sets out the resources that we require in 2016/17.
The full consultation document is available here.

PhonepayPlus is consulting on:

• A budget for 2016/17 which represents a 5% saving in real terms
• A full-cost operating budget for the regulation of PRS estimated at £4,269k
• An adjusted levy of 0.74%
• Registration Scheme fees remaining unchanged at £155 + VAT, and exemptions to registration remaining the same

5% budget savings
We have already achieved reductions in our budget in real terms through a variety of approaches. These have included: office relocation, with overall property costs reduced by 26%, improvements to our IT and business systems enabling an 8% cost reduction and ongoing organisational development work giving us more flexibility in staff capacity management.

In the next year we will continue to make efficiencies and to work in smarter and more effective ways. However, we do need to ensure that we are adequately funded to provide effective regulation which is required by statute through Ofcom.

An adjusted levy at 0.74%
The two factors which have the biggest impact on the adjusted levy are: the level of fines and admin charges collected during the current year, and the size of the PRS market. Collected fines and admin charges are expected to be significantly lower in 2015/16. This means that less retained funds are available to adjust the levy. We also currently estimate a 4% reduction in the PRS market size from our current forecast for 2015/16.

We plan to undertake a comprehensive review of the levy funding model in collaboration with industry stakeholders from 2017/18.

We are seeking feedback on the Business Plan and Budget 2016/17 Consultation until
29 January 2016. This is designed to allow the time necessary to issue notices regarding changes to the levy for the start of the financial year on 1 April 2016.

Where possible, comments should be submitted in writing and sent by email to pbarker@phonepayplus.org.uk.