Issue - meetings

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with an update on performance in the Revenues and Benefits Shared Service, as detailed within Appendix 1 of the Report.

Decision

That the report be noted, and an update be presented to the next meeting of the Committee on 24 November 2022.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided information on revenues performance for Quarter 1 2022/23 in respect of (a) council tax for the City of Lincoln Council and North Kesteven District Council; and (b) business rates for the City of Lincoln Council, North Kesteven District Council and West Lindsey District Council. Comparisons to the national and local position in terms of performance was provided, where possible.

The Revenues and Benefits Shared Service had now been in operation for eleven years since 1 June 2011, and performance had largely been maintained and improved whilst continuing to provide value for money.  Continual improvement and success was being achieved in both statistical and financial performance, as well as positive outcomes for customers of the partner local authorities. However, the Covid-19 pandemic had understandably impacted on some areas of performance and these impacts were likely to continue for many more months.

In respect of council tax, up to the end of Quarter 1 2022/23, in-year collection for Lincoln and North Kesteven was up by 0.89% and 0.24% respectively.  This was a positive direction in travel, officers would do everything possible to continue this trajectory going forward. Net collectable debit for 2022/23 (compared to 2021/22) had increased by £1.9 m for Lincoln and £4.5m for North Kesteven.

In terms of the national context, the latest available figures related to annual Council Tax in-year collection outturns 2021/22. City of Lincoln Council’s in-year collection was 266^th (2020/21 238^th) and North Kesteven 28^th (2020/21 35^th) out of 308 local authorities whose performance was reported. Out of the seven Lincolnshire Districts, for 2021/22, City of Lincoln and North Kesteven achieved 7^th and 2^nd highest collections respectively.

There were some outstanding Council Tax Hardship monies still to be allocated to identified Council Tax accounts, which would have a positive impact on 2021/22 in-year collection rates. However, with the significant pressures of delivering the Council Tax Energy Rebate Scheme, resources had understandably been diverted, - however, these outstanding hardship monies were expected to be allocated shortly.

In respect of business rates, up to the end of Quarter 1 2022/23, compared to the same point in 2021/22, in-year collection was up for all three local authorities: by 7.50% for Lincoln, 2.81% up for North Kesteven and 2.04% for West Lindsey. Collection had been ‘skewed’ somewhat in recent financial years due to varying criteria/awards of the Expanded Retail Discount (ERD)

In terms of the national context, the latest available figures were for annual Business Rates in-year collection outturns 2021/22. City of Lincoln Council’s in-year collection was 48^th (2020/21 7^th), North Kesteven 1  ...  view the full minutes text for item 3

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with an update on performance in the Revenues and Benefits Shared Service, as detailed within Appendix 1 of the report.

Decision

That the report be noted, and an update be presented to the next meeting of this Committee on 8 September 2022.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided an update on revenues performance in respect of annual outturns for the financial year 2021/22 for (a) council tax for the City of Lincoln Council and North Kesteven District Council; and (b) business rates for the City of Lincoln Council, North Kesteven District Council and West Lindsey District Council. Comparisons to the national and local position in terms of performance was provided, where possible.

The revenues and benefits shared service had now been in operation for 11 years since 1 June 2011, and performance had largely been maintained and improved whilst continuing to provide value for money. Continual improvement and success was being achieved in both statistical and financial performance, as well as positive outcomes for customers of the partner local authorities. However, the Covid-19 pandemic had understandably impacted on some areas of performance and these impacts were likely to continue for many more months.

In respect of council tax for the financial year 2021/22, in-year collection was down for the City of Lincoln by 0.78% and up for North Kesteven by 0.35% respectively. The financial impacts of Covid-19 on residents' incomes had continued, making collection of Council Tax a balance of the importance of collecting monies due in a prompt manner, whilst making repayment arrangements where applicable and appropriate in order that undue financial hardship to taxpayers was avoided. Net collectable debit for 2021/22 (compared to 2020/21) had increased by £2,728,406m for Lincoln and £3, 115,475m for North Kesteven.

It had been envisaged that outstanding Council Tax Hardship monies (City of Lincoln circa £200k, North Kesteven circa £90k) would have been allocated to identified cohorts within the latter part of 2021/22 – however, this required a script from our ICT system supplier (NEC, previously Northgate). Understandably, NEC resources had been diverted to the Council Tax Energy Rebate, - the script to allocate Council Tax Hardship monies was now being picked up again in the early part of 2022/23.

In respect of business rates, for the financial year 2021/22, in-year collection was down by 0.52% for Lincoln, 2.53% up for North Kesteven and 1.15% down for West Lindsey. The year 2021/22 was not wholly comparable to 2020/21 due to a reduction in Expanded Retail Discount

As detailed at paragraph 4.9 of the report, there had been key movements in business rates bases over the last year.

As at the end of the end of the financial year 2021/22, outstanding revenues documents stood at a total of 3,022, of which 2,046 were from the City of Lincoln and 976 from North Kesteven. Although this figure was higher than the total figure at the end of  ...  view the full minutes text for item 33