The Civil Aviation Authority has opened a consultation on proposed statutory charges for the year 2017/18. These affect General Aviation and therefore will have an impact on air displays.
Their consultation page states:-
This consultation contains the proposed amendments to the CAA Schemes of Charges within the documents shown below, which are planned to be effective as from 1 April 2017.
As a body that is directly funded by charges paid by those we regulate we fully understand the difficulties the industry continues to face. This is one of our primary considerations when we set our charges.
Over the past seven years the increase in our charges was only 3.7% while in the same period UK inflation was 19.1%. This is because we have worked hard to reduce our operating costs. As part of the CAA’s five year strategic plan, we set ourselves stretching financial targets which included substantially containing the growth in employment costs, including ongoing pension costs which grew by in excess of £20 million. We set a financial target to save at least £16 million in employment costs over the 5 year plan period. By 31 March 2016, we had exceeded that target and we had reduced those costs by 2.2% in real terms; FTEs in the Regulatory Sector reduced by 19%.
However, we now face significant financial pressures with increases in our cost base as well as the need to make crucial investment in modernising our systems. Our two main workstreams, Performance Based Regulation (PBR) and the Transformation programme, will deliver long-term efficiencies and better customer service, and we are committed to controlling the costs of making these improvements.
Given these current cost pressures, we propose that there should be an increase of 1.5% across all Charges Schemes in 2017/18, which is lower than the forecast CPI rate of inflation of 1.8%.
In addition, we are proposing specific charges to cover our costs in the four areas where we are undertaking new activities- Airspace Change Process (ACP), Unmanned Aircraft Systems (UAS), Aviation Security and Security Management Systems, and increased oversight by the Medical Department. There are a number of further proposed structural changes detailed in section 4 of the main consultation document.
The Consultation and methods of response are detailed on https://consultations.caa.co.uk/finance/caa-charges-2017-18