Crematorium Feasibility Study Part One

47
North Hertfordshire District Council Crematorium Feasibility Study Peter Mitchell Associates December 2012

Transcript of Crematorium Feasibility Study Part One

Page 1: Crematorium Feasibility Study Part One

North Hertfordshire District Council

Crematorium Feasibility Study

Peter Mitchell Associates

December 2012

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Table of Contents

List of Figures.......................................................................................................... 3

Executive Summary ............................................................................................... 5

Introduction ............................................................................................................ 7

The Author.............................................................................................................. 8

Demand for Cremation in the UK....................................................................... 9

Demand for Cremation at Wilbury Hills ......................................................... 12

Proximity of existing crematoria ..............................................................................12

Population......................................................................................................................16

Age structure ................................................................................................................18

Mortality rates ..............................................................................................................20

Religion ...........................................................................................................................23

Ethnicity .........................................................................................................................27

Impact of a new Wilbury Hills Crematorium upon existing crematoria ... 31

Estimating Demand at Wilbury Hills Crematorium ...................................... 37

Capital investment required .............................................................................. 40

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List of Figures

Fig Description Page

1 Figure 1: The Growth of Cremation in the UK 9

2 Figure 2: Crematoria Development and the Growth of Cremation in

the UK

10

3 Figure 3: UK deaths, burials and cremations 1885 to 2011 11

4 Approximate travel distances and times 12

5 Approximate travel distances and times 13

6 Approximate travel distances and times 13

7 Population projections for NHDC – Numbers 16

8 Population projections for NHDC - Proportions 17

9 Age structure comparison 2012 18

10 Age structure comparison 2035 18

11 Comparison of projected growth by quinary age group between 2012

and 2035

19

12 Male deaths and death rates in 2010 by age band 20

13 Female deaths and death rates in 2010 by age band 20

14 (2010-based ONS) Projected Annual Deaths 2012 – 2035 21

15 Actual and Projected Birth and Deaths in UK (1951-2081) 22

16 Religious Attitudes towards Cremation (Source: Cremation Society of

Great Britain)

23

17 Religious belief comparison 2001 24

18 Religious belief comparison 2001 – excluding Christianity 25

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Fig Description Page

19 Religious belief comparison 2001 – minority faiths 25

20 Religious preferences for burial and cremation comparison 2001 –

minority faiths

26

21 Muslims by Ethnic Group (Census 2001) 27

22 Indians by Religion (Census 2001) 27

23 Black Africans by Religion (Census 2001) 27

24 Ethnicity comparison 2009 28

25 Ethnicity comparison 2009 – excluding White British 29

26 Ethnicity comparison 2009 – Black, Asian & Minority Ethnic (BAME)

Groups

29

27 Opening Alford Crematorium 32

28 Opening Harwood Park Crematorium 32

29 Opening Sittingbourne Crematorium 33

30 Opening Telford Crematorium 33

31 Cremation fees and ranking by price 36

32 Population of urban areas neighbouring Wilbury Hills 38

33 Typical costs of building a crematorium 40

34 Approximate costs of building new crematorium 41

35 Approximate estimated costs of converting Wilbury Hills Chapel to

create a crematorium

42

36 Example of income to the Council from a private crematorium

operator

47

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Executive Summary

This report is an initial study into the feasibility of providing a crematorium at Wilbury Hills

Cemetery.

The report illustrates the context of demand for cremation in the UK and examines factors

influencing demand for a new Wilbury Hills Crematorium, including:

• Proximity to existing crematoria

• Population

• Age structure

• Mortality rates

• Religion

• Ethnicity

The report examines the impact of the opening of new crematoria upon existing ones,

including the relevance of fees.

The report then examines the estimation of potential demand for the new Wilbury Hills

Crematorium.

Based upon its proximity to 3 urban areas, the report concludes that a very conservative

estimate of demand would be 560 cremations per year at the new Wilbury Hills

Crematorium. This would equate to an average of just over 2 funerals per day Monday to

Friday.

This author considers that a more reasonable estimate of demand would be approximately

700 cremations per year at the new crematorium. This would equate to an average of nearly

3 funerals per day Monday to Friday.

This demand is sufficiently high to make a crematorium in this location feasible financially.

Demand would grow in line with projected increases of 33% in deaths in North

Hertfordshire by 2035.

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This report was initially focused upon the potential conversion of the existing Chapel at

Wilbury Hills to incorporate cremation facilities and thus provide a low cost crematorium

option.

Whilst this option offers certain advantages, this report concludes that a new crematorium

building on this site would be a better solution and provide a higher level of customer

satisfaction.

Whilst the capital costs of building a new crematorium are significantly greater than

converting the exiting building, this project could be completed by a specialist private

crematorium company at no cost to the Council and in fact lead to a new income stream for

the Council.

Recommendations

If the Council wishes to continue to explore the option of converting the existing building

into a crematorium, the most important issue to overcome is the requirement of s.5 of the

Cremation Act 1902 relating to distance from residential properties. This potentially fatal

issue should be resolved prior to taking the project any further.

If the Council accept the arguments in favour of a completely new crematorium on the site,

the primary consideration must be whether this is a project that the Council would be

prepared to fund or whether provision by the specialist private sector would be the better

option.

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Introduction

North Hertfordshire District Council commissioned Peter Mitchell Associates to undertake

an initial study into the feasibility of creating a crematorium at the Wilbury Hills Cemetery in

Letchworth.

The study brief includes:

• Identify the potential level of demand

• Provide an indication of the level of capital investment required

• Identify any specific infrastructure issues such as car parking or utilities supplies

• Identify potential procurement options high lighting the risk verses benefits to

NHDC that are applicable for each option.

• Identify potential options for future management and operation of the facility once

developed.

• Propose a potential lay out

• Identify any key issues that will need to be covered in any future Business Case

Proposal.

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The Author

I am Peter Mitchell, Fellow and Diploma holder of the Institute of Cemetery and

Crematorium Management.

Since February 1983, I have worked at all levels in cemeteries and crematoria in both public

and private sectors and have been an independent consultant specializing in all matters

relating to burial, cremation and exhumation since April 2002.

I have completed a number of cemetery and crematorium feasibility studies for both local

authorities and private companies and am very familiar with the issues associated with the

provision of burial and cremation facilities. My understanding of these issues is thus based

upon both specialist knowledge and practical experience.

Further information is available at www.PeterMitchell.org

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Demand for Cremation in the UK

Potential demand for a new crematorium located at Wilbury Hills should firstly be

considered within the context of overall UK demand for cremation.

The first public crematorium was opened at Woking in 1885 and the chart below illustrates

the percentage growth in cremation since that time:

Figure 1: The Growth of Cremation in the UK

The chart illustrates how cremation initially accounted for an insignificant proportion of

funerals until the Second World War, after which there was a rapid growth in its popularity.

There are currently 266 operational crematoria and, in 2011, cremation accounted for

413,845 (74.4%) of UK funerals.

One of the key factors in the growth in the popularity of cremation has been the increase in

the number of UK crematoria. This has increasingly made cremation more readily accessible

to a wider number of people.

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UK Burials and Cremations 1885-2011

Cremations Burials

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The chart below illustrates this link between the number of crematoria and the number of

cremations:

Figure 2: Crematoria Development and the Growth of Cremation in the UK

New crematoria are still being planned and built in various locations in the UK.

In 1995, there were 649,635 deaths in the UK. The annual number of deaths has since fallen

by nearly 15% to 556,229 in 2011.

In spite of the decrease in the number of deaths, during the same period the proportion of

cremations has continued to rise from 69% to 74%.

This report examines demographic factors later, but at this point the chart below provides a

useful illustration of the overall context of the numbers of deaths, burials and cremations

since 1885.

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Figure 3: UK deaths, burials and cremations 1885 to 2011

In spite of fluctuations in the overall numbers of deaths, the inexorable rise in the number of

cremations is quite evident.

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Demand for Cremation at Wilbury Hills

The key factors affecting potential demand for a new crematorium at Wilbury Hills are:

• Proximity to existing crematoria

• Population

• Age structure

• Mortality rates

• Religion

• Ethnicity

Issues to be examined are levels of demand at existing crematoria serving North

Hertfordshire; whether people would continue to use these existing crematoria, rather than

a new one at Wilbury Hills, and whether demographic factors indicate sustained increasing

demand for cremation in the catchment area.

Proximity of existing crematoria

The main urban centres of North Hertfordshire are Hitchin, Letchworth, Baldock and

Royston, with the first three lying close to each other. The table below presents

approximate distances and travel times from Letchworth and Royston to existing

crematoria:

Letchworth Royston

Crematorium Miles Minutes Miles Minutes

Bedford 21 45 30 60

Cambridge 30 50 20 30

Harlow 28 60 29 50

Luton 10 25 23 40

Milton Keynes 32 60 45 80

Stevenage 11 25 20 35

Watford 26 38 35 50

Figure 4: Approximate travel distances and times

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The table below sorts existing crematoria in terms of approximate distances and more

importantly travel times from Letchworth:

Letchworth

Crematorium Miles Minutes

Luton 10 25

Stevenage 11 25

Watford 26 38

Bedford 21 45

Cambridge 30 50

Harlow 28 60

Milton Keynes 32 60

Figure 5: Approximate travel distances and times

The table below sorts existing crematoria in terms of approximate distances and more

importantly travel times from Royston:

Royston

Crematorium Miles Minutes

Cambridge 20 30

Stevenage 20 35

Luton 23 40

Harlow 29 50

Watford 35 50

Bedford 30 60

Milton Keynes 45 80

Figure 6: Approximate travel distances and times

These tables illustrate that, at average driving speeds and conditions, travel times to the

nearest crematoria from Letchworth and Royston are 25 and 30 minutes respectively.

Where a Funeral Director’s hearse and limousine(s) lead a cortège of mourners’ vehicles to

a crematorium, travel speeds are often much lower than for normal traffic.

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This is mainly as a consequence of trying to keep the cortège together when negotiating

junctions so that everybody finds their way to the crematorium and arrives together in time

for the funeral service.

The approximate travel times given in the tables above should therefore be considered

optimistic for funeral cortèges. This means that the closest crematoria to residents of North

Hertfordshire are at or even beyond the recognized limit of preferred travel time, as

discussed in the Competition Appeal Tribunal Case No. 1044/2/1/04 Judgment of 6th July

2005, where reference is made to the importance of travel times by car in relation to

crematoria:

199. It is in our view not difficult to identify why consumers would have a strong preference for using

the local or most convenient crematorium. Mourners at a funeral, many of whom are likely to be

elderly, would not normally wish to travel long distances if that could be avoided; many elderly

mourners may not have transport available to take them longer distances; extra travel is likely to

increase the time needed, and also to add to the cost of the funeral in terms of fuel and labour

costs; and there may be sentimental reasons for choosing the local crematorium, for example to

facilitate subsequent visits to view a memorial tablet, to visit a garden of remembrance, or because a

previous family member was cremated there. Those considerations, of a common sense nature, are

in our view supported by the evidence before the Tribunal.

207. In addition, there has been no challenge to the evidence, which emerges from the planning

decision of 17 February 1999 relating to South Crofty plc in Cornwall, in which the planning

inspector said:

“as a rule of thumb, the industry works on the basis that a funeral party should not have to undergo

more than 30 minutes drive to a crematorium.”

The key factor for most people choosing a crematorium for a funeral is its location relative

to the people who will attend the funeral. There is a general preference to minimize travel

times.

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In addition to travel time, qualitative factors are also relevant:

Availability of the bereaved family’s preferred date and time for the

funeral

Particularly during periods of high demand in winter months, people may have to wait up to

3 or even 4 weeks before the crematorium, Funeral Director and Officiant are all available.

Service interval time

In recent years, crematorium service times have in many cases been extended from 30 to 45

minutes. This enables better flow of mourners and vehicles and eases the impression that a

busy crematorium is like a ‘conveyor belt’ of funerals.

Quality of service offered in terms of provision of music and facilities

Many crematoria now offer a range of options for music, audio-visual presentations and

other means of personalizing funerals.

Standards of maintenance of buildings and grounds

Grounds and building maintenance standards are important in creating a positive image of

the crematorium to mourners and visitors.

This report does not include a comparative assessment of these qualitative factors at local

crematoria.

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Population

The two charts below illustrate ONS population projections for North Hertfordshire

District. They were published on 21st March 2012 and are based on the indicative 2010 mid-

year population estimates published on 17th November 2011.

It is important to note that ONS subnational population projections use past trends to

project forward the population to give an indication of the future population for 25 years

from the base year.

‘Children’ are defined as people 0 and 15 years of age

‘Working age’ is defined as people aged between 16 years and state pensionable age

Figure 7: Population projections for NHDC - Numbers

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Figure 8: Population projections for NHDC - Proportions

The statistics indicate that between 2010 and 2035:

• the overall population of North Hertfordshire is projected to rise by 31,000 (25%)

• the number of people of State Pension Age and over is projected to increase by 42%

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Age structure

The charts below use the ONS 2010-based population projections to compare the age

structure of North Hertfordshire with that of the whole of England for 2012 and 2035:

Figure 9: Age structure comparison 2012

Figure 10: Age structure comparison 2035

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These charts illustrate:

• in 2012, the proportion of the population aged 60 years and above in North

Hertfordshire is similar to that of England as a whole

• in 2035, North Hertfordshire is projected to have a higher proportion of older

people than England as a whole

The chart below illustrates and compares the projected percentage variation in the

population of quinary age groups in England as a whole and North Hertfordshire:

Figure 11: Comparison of projected growth by quinary age group between 2012 and 2035

This chart further illustrates that in North Hertfordshire there is expected to be a greater

increase in the proportion of the elderly population by 2035 than in England as a whole.

Age structure is important due to its link with mortality rates and numbers of deaths.

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Mortality rates

The charts below illustrate the link between age and death rates:

Figure 12: Male deaths and death rates in 2010 by age band

Figure 13: Female deaths and death rates in 2010 by age band

Under 1 1-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85 and over

Deaths 1,715 271 157 180 601 1,102 2,792 5,977 12,004 26,377 46,860 76,061 63,814

Rates 4.6 0.2 0.1 0.1 0.3 0.6 0.8 1.5 3.2 8.3 20.5 56.6 152.7

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Deaths 1,420 229 135 147 342 394 1,349 3,622 8,158 17,530 32,699 72,023 117,278

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These graphs illustrate the clear link between age and mortality rate, i.e. the older one gets

the more likely one is to die.

The chart below illustrates ONS 2010-based projections for numbers of deaths from 2012

to 2035.

Figure 14: (2010-based ONS) Projected Annual Deaths 2012 – 2035

There is expected to be an increase of approximately 400 deaths per year within North

Hertfordshire by 2035, representing a significant 33% increase on current levels. If realized,

this increase will significantly increase demand for both burial and cremation facilities locally.

Across the UK as a whole, deaths are generally declining and predicted to continue to do so

until about 2021.

However, looking further forward they are predicted to increase significantly, as illustrated

in the ONS chart below.

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Figure 15: Actual and Projected Birth and Deaths in UK (1951-2081)

It can be seen that the number of deaths nationally is expected to rise quite dramatically

from about 2016.

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Religion

Religious belief can play a significant role in people’s choice between burial and cremation.

Demand for burial and cremation facilities may thus be influenced by the religious beliefs of

the residents of a particular area.

Forbid

Cremation

Permit

Cremation

Muslims Hindus

Jews – Orthodox Buddhists

Greek Orthodox Sikhs

Russian Orthodox Roman Catholic

Zoroastrians Jews – Liberal

Parsees Church of Scotland

Church of England

Church in Wales

Church of Ireland

Presbyterians

Methodists

Figure 16: Religious Attitudes towards Cremation (Source: Cremation Society of Great

Britain)

The vast majority of Hindus, Buddhists and Sikhs all choose cremation in preference to

burial. In contrast, Muslims and Orthodox Jews choose burial. An area with a high

proportion of Muslims is thus going to have lower demand for a crematorium than one with

a high proportion of Hindus, Buddhists and Sikhs.

The majority of Roman Catholics still seem to prefer burial, in spite of a Papal edict in July

1963 that stated that they are permitted to choose cremation.

The most recent data on religious belief is contained in the Census 2011.

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The charts below illustrate the Census 2011 data and compare the religious beliefs of the

population of North Hertfordshire with England as a whole.

Figure 17: Religious belief comparison 2011

North Hertfordshire has a similar high proportion of people describing themselves as

Christian compared to the whole of England, but more indicating no religious belief.

The chart below excludes Christian.

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Figure 18: Religious belief comparison 2011 – excluding Christianity

The chart below includes only the minority religious beliefs.

Figure 19: Religious belief comparison 2011 – minority faiths

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North Hertfordshire has a higher proportion of Sikhs, a lower proportion of Hindus and

Jews and a significantly lower proportion of Muslims than the whole of England.

The chart below uses the data relating to minority religious beliefs to indicate their likely

impact upon people’s choice of burial or cremation.

Figure 20: Religious preferences for burial and cremation comparison 2011 – minority

faiths

Compared with England as a whole (2.8%), the proportions of minority religious beliefs

preferring cremation are higher in North Hertfordshire (3.4%).

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2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

North Hertfordshire England

Prop

ortio

n of

the

Pop

ulat

ion

Religious Preferences 2011

Burial

Cremation

Page 27: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 27 of 47

Ethnicity

Ethnic origin, like religious belief, can influence people’s choice of burial or cremation, for

example Black Caribbean people tend to prefer burial through their generally Christian

background; Bangladeshi people prefer burial, as they are generally Muslim.

The full analysis of data from the Census 2011 is not yet available, however Census 2001

results for England and Wales illustrate the link between ethnicity and religion.

The table below shows the proportions of Muslims, who prefer burial, by ethnic group with

the majority being Pakistani:

White

British

Other

White Mixed Indian Pakistani Bangladeshi

Other

Asian

Black

African

4.1% 7.5% 4.2% 8.5% 42.5% 16.8% 5.8% 6.2%

Figure 21: Muslims by Ethnic Group (Census 2001)

The table bellow shows the religious beliefs of people in the Indian ethnic group, with the

largest proportions being Hindus and Sikhs, who prefer cremation:

Christian Buddhist Hindu Muslim Sikh Jewish Other

4.9% 0.2% 45.0% 12.7% 29.1% 0.1% 1.7%

Figure 22: Indians by Religion (Census 2001)

The table below shows the religious beliefs of people in the Black African ethnic group, with

the largest proportion being Christian:

Christian Buddhist Hindu Muslim Sikh Jewish Other

68.9% 0.1% 0.2% 20.0% 0.1% 0.0% .2%

Figure 23: Black Africans by Religion (Census 2001)

Page 28: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 28 of 47

The most recent data on ethnicity is contained in the Census 2011.

The charts below illustrate the Census 2011 data and compare the ethnicity of the

population of North Hertfordshire with England as a whole.

Figure 24: Ethnicity comparison 2011

North Hertfordshire has a slightly higher proportion of people of the White

English/Welsh/Scottish/Northern Irish/British ethnic group than the rest of England.

0% 20% 40% 60% 80% 100%

England

North Hertfordshire

Proportion of the population

Ethnicity 2011

White: English/Welsh/Scottish/Northern Irish/British

White: Irish

White: Gypsy or Irish Traveller

White: Other White

Mixed/multiple ethnic group: White and Black Caribbean

Mixed/multiple ethnic group: White and Black African

Mixed/multiple ethnic group: White and Asian

Mixed/multiple ethnic group: Other Mixed

Asian/Asian British: Indian

Page 29: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 29 of 47

Figure 25: Ethnicity comparison 2011 – excluding White British

Figure 26: Ethnicity comparison 2009 – Black, Asian & Minority Ethnic (BAME) Groups

0% 5% 10% 15% 20% 25%

England

North Hertfordshire

Proportion of the population

Ethnicity 2011 White: Irish

White: Gypsy or Irish Traveller

White: Other White

Mixed/multiple ethnic group: White and Black Caribbean

Mixed/multiple ethnic group: White and Black African

Mixed/multiple ethnic group: White and Asian

Mixed/multiple ethnic group: Other Mixed

Asian/Asian British: Indian

Asian/Asian British: Pakistani

Asian/Asian British: Bangladeshi

Asian/Asian British: Chinese

Asian/Asian British: Other Asian

Black/African/Caribbean/Black British: African

Black/African/Caribbean/Black British: Caribbean

Black/African/Caribbean/Black British: Other Black

Other ethnic group: Arab

Other ethnic group: Any other ethnic group

0% 2% 4% 6% 8% 10% 12% 14% 16%

England

North Hertfordshire

Proportion of the population

Ethnicity 2011 Mixed/multiple ethnic group: White and Black Caribbean

Mixed/multiple ethnic group: White and Black African

Mixed/multiple ethnic group: White and Asian

Mixed/multiple ethnic group: Other Mixed

Asian/Asian British: Indian

Asian/Asian British: Pakistani

Asian/Asian British: Bangladeshi

Asian/Asian British: Chinese

Asian/Asian British: Other Asian

Black/African/Caribbean/Black British: African

Black/African/Caribbean/Black British: Caribbean

Black/African/Caribbean/Black British: Other Black

Other ethnic group: Arab

Other ethnic group: Any other ethnic group

Page 30: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 30 of 47

The most significant differences between North Hertfordshire and England as a whole are

lower proportions of Asian or Asian British Pakistanis, Asian or Asian British Bangladeshis,

who due to the culture and religious beliefs are much more likely to prefer burial to

cremation.

This is likely to slightly increase the proportion of the population of North Hertfordshire

who, based upon ethnic group, would prefer cremation.

Page 31: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 31 of 47

Impact of a new Wilbury Hills Crematorium upon existing

crematoria

The charts below illustrate the impact upon cremations at existing crematoria in different

localities following the opening of one of more new crematoria.

They show cremation numbers at a number of crematoria before and after the opening of

new ones. All the charts include a line representing the total combined cremations at all

crematoria featured. In some of the charts the total combined cremations decline over the

periods shown. This should be seen within the context of the current period of falling UK

deaths rates and numbers.

The significant effects of the opening of new crematoria are:

• Some existing crematoria lose significant numbers of cremations.

• Some existing crematoria suffer little impact upon their business.

• In some cases, new crematoria have actually increased the total combined cremations

in an area.

Where crematoria lose significant numbers of cremations, there is clearly a negative impact

upon their income. However, there are two potential benefits:

Where a busy crematorium suffers a loss in cremation numbers, it can be an opportunity to

increase the quality of service offered. This can most readily be achieved by increasing the

service interval time, which gives each of the funerals that it retains more time and space so

appreciated by mourners.

The need for existing crematoria to comply with legislation requiring the installation of flue

gas treatment plant requires significant capital investment. It usually coincides with the need

to replace existing cremators that are approaching the end of their serviceable lives.

Reduced cremation numbers means that less cremators are required and changes in

operational practices can lead to significant savings in energy usage and emissions of CO2.

Page 32: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 32 of 47

Figure 27: Opening Alford Crematorium

Boston Crematorium lost 30% of its cremations to the new Alford Crematorium.

Figure 28: Opening Harwood Park Crematorium

Luton lost 23% of its cremations between 1996 and 2001 due to Harwood Park

Crematorium, whilst Cambridge, Garston (Watford) and Harlow all lost 10%.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Alford 0 54 748 846 889 900

Boston 1,922 1,877 1,980 1,955 1,809 1,933 1,899 1,372 1,418 1,281 1,332

Grantham 1,206 1,296 1,261 1,244 1,264 1,151 1,162 1,116 1,034 1,038 1,107

Lincoln 1,577 1,635 1,737 1,699 1,640 1,670 1,650 1,682 1,714 1,656 1,750

Combined 4,705 4,808 4,978 4,898 4,713 4,754 4,765 4,918 5,012 4,864 5,089

0

1,000

2,000

3,000

4,000

5,000

0

500

1000

1500

2000

2500

Com

bine

d cr

emat

ions

Cre

mat

ions

at

each

cre

mat

oriu

m

Year

Opening Alford Crematorium

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Bedford 1,463 1,473 1,411 1,526 1,525 1,583 1,561 1,557 1,579 1,603 1,531 1,536 1,624 1,609 1,588 1,534

Cambridge 2,974 2,967 2,806 2,815 2,795 2,681 2,816 2,808 2,715 2,712 2,707 2,593 2,620 2,680 2,587 2,418

Garston 3,605 3,465 3,300 3,329 3,226 3,194 3,288 3,258 3,293 3,186 3,065 2,975 2,997 2,854 2,746 2,846

Harlow 1,969 1,913 1,710 1,744 1,844 1,775 1,761 1,850 1,822 1,708 1,725 1,553 1,625 1,580 1,586 1,623

Luton 2,690 2,351 2,085 2,051 1,956 2,075 1,946 2,010 1,892 1,890 1,818 1,755 1,846 1,832 1,772 1,774

Milton Keynes 1,471 1,470 1,518 1,582 1,575 1,608 1,578 1,668 1,655 1,633 1,517 1,572 1,645 1,676 1,654 1,676

Stevenage 0 1,186 1,665 1,783 1,833 1,843 1,911 1,957 1,838 1,936 2,075 2,071 2,152 2,094 2,233 2,176

Combined 14,172 14,825 14,495 14,830 14,754 14,759 14,861 15,108 14,794 14,668 14,438 14,055 14,509 14,325 14,166 14,047

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Com

bine

d cr

emat

ions

Cre

mat

ions

at

each

cre

mat

oriu

m

Year

Opening Harwood Park Crematorium

Page 33: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 33 of 47

Figure 29: Opening Sittingbourne Crematorium

Maidstone lost 30% of its business between 2002 and 2007 due to the new crematorium.

Figure 30: Opening Telford Crematorium

Shrewsbury lost 36% of its business between 1999 and 2004 due to the new crematorium.

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Charing 1,395 1,451 1,335 1,365 1,445 1,333 1,347 1,270 1,338 1,281 1,281 1,265 1,245

Chatham 2,883 3,043 2,733 2,824 2,875 2,711 2,706 2,868 2,677 2,718 2,839 2,825 2,688

Maidstone 2,127 2,060 2,031 2,105 2,007 1,606 1,580 1,543 1,471 1,460 1,294 1,536 1,452

Sittingbourne 0 243 651 684 791 818 819 936 971 963

Combined 6,405 6,554 6,099 6,294 6,570 6,301 6,317 6,472 6,304 6,278 6,350 6,597 6,348

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Com

bine

d C

rem

atio

ns

Cre

mat

ions

at

each

cre

mat

oriu

m

Year

Opening Sittingbourne Crematorium

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Shrewsbury 2,585 2,046 1,849 1,930 1,934 1,898 1,813 1,669 1,716 1,774 1,735

Stafford 1,602 1,495 1,557 1,549 1,620 1,555 1,659 1,632 1,690 1,644 1,668

Telford 0 687 888 981 958 987 1,032 1,067 1,050 1,060 1,157

Wolverhampton 2,741 2,669 2,487 2,416 2,622 2,575 2,582 2,555 2,430 2,531 2,408

Combined 6,928 6,897 6,781 6,876 7,134 7,015 7,086 6,923 6,886 7,009 6,968

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0

500

1,000

1,500

2,000

2,500

3,000

Com

bine

d cr

emat

ions

Cre

mat

ions

at

each

cre

mat

oriu

m

Year

Opening Telford Crematorium

Page 34: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 34 of 47

There is no doubt that a new crematorium at Wilbury Hills would affect business at existing

crematoria at Luton and Stevenage through its use by residents of Hitchin, Letchworth and

Baldock. It would also affect Cambridge Crematorium if used by residents of Royston.

The Competition Appeal Tribunal Case No. 1044/2/1/04 Judgment of 6th July 2005 provides

useful information about the catchment areas of crematoria and is particularly useful in that

it concerns Harwood Park Crematorium at Stevenage. It states:

195 However, it appears to be common ground that, as with funeral directing services, consumers

have a strong preference to use local crematoria services, on grounds of convenience. Paragraph 41

of the Decision accepts that "most cremations take place at the nearest crematorium to the

deceased". That is fully supported by Annex 2(A) to the Decision, which shows for 2002 details of

the cremations carried out by the respective branches of Austins, Burgess and the Co-op in

Stevenage/Knebworth situated between 3 and 5 kilometres from Harwood Park. On the assumption

that those three branches handled virtually all the cremations arising from deaths in the

Stevenage/Knebworth area in 2002, it appears that about 95 per cent of cremations arising in that

area were carried out at Harwood Park.

196. The same pattern appears as regards funeral directors in other areas. Thus, according to

figures in Annex 2A of the Decision – based, sufficiently in our view, on a survey of local funeral

directors representing 75 per cent of funerals carried out at Harwood Park – in 2002 the

proportion of cremations carried out at the nearest crematorium by funeral directors operating in

the following towns were as follows:

Town Nearest Crematorium Proportion of cremations at

nearest crematorium

Ware Harwood Park 66

Welwyn Garden City Harwood Park 73

Letchworth Harwood Park 74

Buntingford Harwood Park 75

Hatfield West Herts 78

Hertford Harwood Park 82

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 35 of 47

221. …Harwood Park increased its prices by 55% between 1998 and 2003, as compared with

price increases of 32% by the other crematoria. Over the same period Harwood Park increased its

number of cremations by 17.5%, as compared with –15% to +8% for the other crematoria.

221. While we accept that such figures need to be interpreted with caution, they do tend to show

that Harwood Park does indeed have market power, in that it has apparently been able to increase

its prices faster than other crematoria without losing cremations, and in fact increasing the number

of cremations carried out.

225. In the present context the above evidence in our view strongly supports the conclusion that

Harwood Park is shielded from competition to a material extent and operates in an identifiably

separate geographic market.

246. Within the Stevenage/Knebworth area Harwood Park carries out over 90 per cent of the

cremations arising in that area. A market share of that order is, in itself, indicative of dominance. As

we have already found, there is little realistic choice of alternative crematoria for persons resident in

that area.

247. In addition: (i) Austins has accepted that Harwood Park is to all intents and purposes exclusive

in its catchment area; (ii) there are insurmountable barriers to entry, since there is no realistic

prospect of another crematorium being opened within the catchment area of Harwood Park, let

alone in Stevenage/Knebworth; and (iii) Harwood Park has been able to increase its prices further

than its competitors, while continuing to increase the number of cremations.

The Funeral Director is in a position to provide advice to his clients and thus exert some

limited influence upon their choice of crematorium. There may also be cultural factors

affecting choice. For example, residents of Royston might prefer to continue to use the

crematorium at Cambridge rather than a new one in Wilbury Hills.

The charges made by the crematorium can also be relevant. As the Competition Tribunal

found, Harwood Park dominates within its catchment area. This is also supported by the fact

that the cremation fee charged by Harwood Park in 2012, £730, is the third highest in the

whole of the UK.

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 36 of 47

The table below lists the existing crematoria listed in the earlier tables concerning travel

distances, with their prices and price ranking in the UK, according to the Cremation Society

of Great Britain,

Crematorium Cremation fee Price

ranking in

the UK

Harwood Park £730.00 3rd

Milton Keynes £672.00 29th

Luton £640.00 56th

Cambridge £597.50 94th

Harlow £575.00 134th

Bedford £567.00 149th

Garston £500.00 231st

Figure 31: Cremation fees and ranking by price

It is therefore likely that, whilst a new Wilbury Hills Crematorium would attract funerals

primarily on the basis of its proximity to some areas of the population, it would not be

difficult to charge a fee that is much more attractive to customers than that charged by

Harwood Park and yet still provide enough income to make the project financially viable.

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 37 of 47

Estimating Demand at Wilbury Hills Crematorium

So far this report has given an indication that a new crematorium located at Wilbury Hills

would fit in with historic and current trends of attracting funerals through its location

convenient to people living in North Hertfordshire. This population is projected to rise with

a consequent rise in the number of deaths.

In 2011, the ONS record that there were a total of 1,203 registered in North Hertfordshire.

This figure does not necessarily mean that 1,203 residents of North Hertfordshire died in

2011 as:

• some deaths registered within North Hertfordshire may have been those of non-

residents who died within the District

• some residents of North Hertfordshire may have died, and their deaths registered,

outside of the District

However, in the absence of detailed research and analysis, this is a reasonable figure to form

the basis of estimates of cremations.

The average cremation rate for England in 2011 was approximately 78% of deaths. Applying

this average rate to 1,203 deaths indicates that there were approximately 938 cremations

originating in North Hertfordshire.

A new crematorium within North Hertfordshire is unlikely to attract 100% of the

cremations in the District due to the various factors already discussed that influence

people’s choice of crematorium.

However, the location at Wilbury Hills is within a shorter travel time from many populated

areas within the District than existing crematoria outside of the District.

Detailed isochrones would indicate with some accuracy the areas of the District lying within

say, 20 minutes travel time. These could then be used to predict with reasonable accuracy

Page 38: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 38 of 47

the population that would find it more convenient to travel to Wilbury Hills Crematorium

than any other.

However, the new crematorium would attract most cremations from the urban areas within

the immediate vicinity, i.e. Hitchin, Baldock and Letchworth. The detailed data from the

Census 2011 is not yet available, but the Census 2001 gives the population of the wards

associated with these towns as follows:

Ward

Population

2001

Baldock East 2,436

Baldock Town 7,431

Hitchin Bearton 7,000

Hitchin Highbury 6,950

Hitchin Oughton 4,953

Hitchin Priory 4,774

Hitchin Walsworth 7,175

Letchworth East 6,910

Letchworth Grange 6,472

Letchworth South East 6,752

Letchworth South West 7,363

Letchworth Wilbury 5,433

Total population 73,649

Figure 32: Population of urban areas neighbouring Wilbury Hills

The total population of North Hertfordshire is the Census 2001 was 116,908. These urban

wards close to Wilbury Hills thus represented approximately 63% of the population of

NHDC.

Based upon the proximity of this population, it is reasonable to suggest that, as a minimum,

60% of the cremations originating in North Hertfordshire would use the new Wilbury Hills

Crematorium.

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 39 of 47

Applying this 60% figure to the 938 cremations, derived from applying the England average

cremation rate to the numbers of deaths, gives approximately 560 cremations per year at

the new Wilbury Hills Crematorium. This would equate to an average of just over 2 funerals

per day Monday to Friday.

In my view, this is a very conservative estimate of the likely cremation numbers at the new

crematorium.

A figure of 75% of the cremations originating within North Hertfordshire would in my view

be more reasonable to expect to use a crematorium at Wilbury Hills. This gives a potential

of approximately 700 cremations per year at the new crematorium. This would equate to an

average of nearly 3 funerals per day Monday to Friday.

These estimates are based upon current levels of population and deaths, which this report

has shown are projected to increase significantly in future years.

Either scenario would enable the new crematorium to provide a high quality service to

mourners through having a 60-minute service interval. This service interval is provided by

the Sittingbourne Crematorium, which undertook 963 cremations in 2011, an average of

nearly 4 per day Monday to Friday.

This service interval time would give mourners as sense of space and privacy. Combined

with location, quality of service and competitive pricing this feature would encourage people

to use the new crematorium in preference to other existing ones.

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 40 of 47

Capital investment required

The typical costs of building a new crematorium are as follows:

Year built

Location Private or Local Authority (L.A.)

Approximate Cost

Notes

2012 Bentley, Brentwood Private £4,000,000 2011 Wyre Forest Private £4,300,000 2011 Borders, Melrose Private £2,600,000 2011 Barry Private £3,200,000 2011 East Devon Private £4,000,000 2011 Mendip Private £2,000,000 2010 Camborne Private £2,500,000 2010 Nacton Private £1,700,000 2010 Fenland Private £2,000,000 2010 West Lothian Private £2,750,000 2009 Wessex Vale Private £3,450,000 2009 Three Counties Private £3,000,000 2009 Hereford L.A. £3,000,000 Replacement build 2009 Wear Valley Private £3,500,000 2007 Chorley Private £2,000,000 2007 Bury Private £3,000,000 2006 Blantyre L.A. £4,000,000 2006 Thatcham Private £1,200,000 2005 Ollerton Private £2,000,000 2005 Dumfries Private £1,250,000 2005 Redbridge Private £2,000,000 Includes cemetery 2004 Holytown Private £2,700,000 2003 Sittingbourne Private £2,000,000 2002 Llanelli Private £1,500,000 2000 Coleshill L.A. £565,000 2000 Telford Private £2,400,000 1999 Moray Private £400,000 1999 Howe Bridge Private £1,000,000 1999 Banbury Private £800,000 1998 Grenoside Private £2,750,000 1998 Haltemprice Private £800,000 Chapel conversion 1998 Basingstoke Private £2,000,000 1998 Basildon Private £2,000,000 1997 East Riding Private £1,000,000 Excluding land 1997 Harwood Park Private £1,700,000 Excluding land 1996 West Wiltshire Private £1,250,000 1995 Inverness L.A. £1,300,000 1995 Nuneaton Private £1,400,000 1994 Aberystwyth Private £700,000 1993 Friockheim Private £580,000 1992 Westerleigh Private £1,350,000 1989 Bury St Edmunds Private £1,000,000 1989 Bodmin Private £500,000 Excluding land

Figure 33: Typical costs of building a crematorium (Cremation Society of Great Britain)

Page 41: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 41 of 47

These figures relate to the costs of building a new crematorium and in most cases include

the costs of acquiring the land.

The table below illustrates a breakdown of the approximate costs of the elements involved

in such a project:

Item

Approximate

cost

Legal, architect & consultants 100,000

Planning fees 2,000

Site surveys & groundworks 75,000

Mains utilities 150,000

Drives & car parks 150,000

Building 1,700,000

Furniture, fixtures & fittings 75,000

Cremation equipment 475,000

Memoria garden 75,000

Total approximate cost 2,802,000

Figure 34: Approximate costs of building a new crematorium

This table excludes VAT and, most importantly, the cost of land.

The specific characteristics of each site and design will impact upon these cost estimates. For

example, the location may mean that it is not feasible to connect to mains gas supplies and

gas storage facilities will be required. Electrical and water supplies and sewerage disposal

arrangements will also be site specific and impact upon costs.

The advantage of the Wilbury Hills site is that the land, access roads and building are already

extant and the costs of developing a crematorium here are therefore significantly less than if

it were simply an agricultural field.

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 42 of 47

Conversion of the existing chapel.

Advantages

1. Suitability of the building

The building is of contemporary design, is in a good state of repair and has an immediately

adjacent space for an extension to house the cremation equipment.

I attach a drawing illustrating how a new cremator with flue gas treatment plant and

associated equipment could be fitted into the identified space.

2. Lower cost to convert the existing building than to build a new crematorium.

The relatively small extension to the building would require expenditure on design, planning

and construction and would need to blend in with existing style and materials of the existing

building. However, such costs must logically be significantly less than a complete new-build

and I estimate as follows:

Item Estimate

Legal, architect & consultants' fees 25,000

Planning fees 300

Site surveys and groundworks 15,000

Mains gas & electricity 150,000

Drives & car parking 30,000

Building 100,000

Furniture, fixtures and fittings

Cremation equipment 475,000

Memorial garden 75,000 Total approximate cost 870,300

Figure 35: Approximate estimated costs of converting Wilbury Hills Chapel to create a

crematorium

This table excludes VAT.

Page 43: Crematorium Feasibility Study Part One

Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 43 of 47

Disadvantages

1. Proximity to houses

The building lies within 200 yards of residential properties. The Cremation Act 1902 section

5 states:

No crematorium shall be constructed nearer to any dwelling-house than two hundred yards, except

with the consent, in writing, of the owner, lessee, and occupier of such house, nor within fifty yards of

any public highway, nor in the consecrated part of the burial ground of any burial authority.

In my opinion, it is extremely unlikely that the residents of the affected houses would give

their consent to the development. Applications to build crematoria normally generate very

negative reactions from the public and the individual property owners within the 200 yard

limit would face huge pressure to refuse consent from opponents of the scheme.

2. Size

The existing building has a smaller chapel than one would expect to find at a modern

crematorium. It currently has the capacity to seat approximately 50 people.

The ‘Recommendations on the Establishment of Crematoria’ published and routinely update

by the Federation of Burial and Cremation Authorities (FBCA) states:

It is estimated that no more than thirty mourners will attend in 50% of cremation services, and only

on exceptional occasions does the number exceed eighty. It seems, therefore, that seating

accommodation should be provided for some 80-100 people. A chapel of this size will accommodate

the majority of services without destroying that intimate atmosphere so desirable with a smaller

congregation.

The average seating capacity at UK crematoria is 100.

It is reasonable to expect a new crematorium building to extend to 450m2. I estimate that

the existing Wilbury Hills Chapel building plus a crematory extension would extend to a

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 44 of 47

maximum of only 300m2. This would therefore suggest that the final extended building would

be a maximum of only 65% the size of a new build crematorium.

3. Adaptability

The building was not designed to be a crematorium. The creation of a new extension large

enough to accommodate cremation equipment is feasible, but there is insufficient space to

incorporate a committal room. This is standard at crematoria and provides a valuable sound

barrier between the chapel and the crematory. The cremation equipment itself generates

noise during operation and the process of charging a coffin and the need to use steel rakes

to rake out the cremated remains generates short-lived but significant noise that would

readily transmit to the chapel.

The best means to minimize the environmental impact of cremation is to cremate coffins

consecutively and minimize the number of occasion when the cremator is started from cold.

The storage of coffins after the day of the cremation service facilitates such operation.

However, the existing chapel building has insufficient space to create a coffin storage area.

4. Parking

There are currently 18 marked car parking spaces set at the sides of the roadway. Whilst it

would be possible for additional cars to park on the roadways, vehicle numbers attending a

typical cremation could lead to congestion, which would also impact upon cemetery

The FBCA recommends:

An adequate car park is essential, and should be placed as near to the chapel as possible but having

regard to the necessity to avoid disturbance by noise. The size can be estimated by equating it to

approximately two thirds of the total seating capacity of the chapel.

It would therefore be desirable to have at least 60 designated car parking spaces at Wilbury

Hills.

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 45 of 47

Conversion versus new build

I have provided estimated costs for both converting the existing building and for building a

new crematorium on the site.

As stated earlier in this report, in my view a crematorium located at Wilbury Hills would

attract a minimum of 700 funerals per year. A competitive cremation fee of £650 would

bring in annual income of £455,000, with additional income generated from memorial sales.

Subject to the costs of capital funding, this level of income is likely to make the project

financially viable.

I estimate the costs of converting the existing building to be approximately £870,300, and

the cost of building an entirely new crematorium within the cemetery to be approximately

£2,802,000.

Whilst there are advantages in converting the existing building, in my view the additional

advantages of a completely new purpose-built crematorium are much greater. A

crematorium development is a long-term project. A cemetery chapel conversion will always

be a compromise solution compared to a specifically designed new crematorium building.

It is likely that the site for a new crematorium building at Wilbury Hills might lie within

consecrated ground. Subject to the agreement of the Church of England, this could be

deconsecrated to enable compliance with the Cremation Act 1902 s.5 prohibition.

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 46 of 47

Development options

Subject to raising appropriate capital funding, North Hertfordshire District Council could

either convert the existing chapel or build a new crematorium and operate it directly. The

Council’s finance officers should be consulted regarding the viability of this option, which

offers to provide significant long-term income from cremation and memorial fees to the

Council.

There are a number of alternative potential options involving the private sector, which could

be explored through soft marketing.

In my view, the option that provides the best option for the Council would be to facilitate

the development and operation of a new crematorium on the site by the specialist private

sector.

The Council would lease approximately 5 acres of the Wilbury Hills Cemetery on a long–

term lease, e.g. 75 years.

The private sector would design and build the new crematorium, including new car parking

and a memorial garden.

The private sector would own and operate the crematorium on a commercial basis without

any Council control or interference.

The Council would benefit from this arrangement by not only having a crematorium built at

no public expense, but also through income from the company. Typically the company would

pay the Council:

£20,000 per year lease on the land for the duration of the lease – linked to the Retail Price

Index

5% of income from all cremations at the crematorium, or limited to cremations over and

above a set threshold, e.g. 5% of income received from all cremations after the first 500 per

year.

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Crematorium Feasibility Study. Peter Mitchell Associates. December 2012. Page 47 of 47

The table below shows an example of the income to the Council that could be expected.

Item Value

Annual total cremations 700

Annual cremation threshold 500

Cremations subject to 5% payment 200

Cremation fee per cremation £650

Cremation income payable to Council £6,500

Annual Lease £20,000

Total annual payment to Council £26,500

Figure 36: Example of income to the Council from a private crematorium operator

The income received would increase in line with R.P.I., cremation numbers and cremation

fee. The details of such an agreement would obviously be subject to negotiations with

potential private sector crematorium operators.