Agenda and minutes

RESOLVED that the minutes of the meeting held on 27 June 2023 be confirmed.

Please note that, in accordance with the Members' Code of Conduct, when declaring interests members must disclose the existence and nature of the interest, and whether it is a disclosable pecuniary interest (DPI) or personal and/or pecuniary.

No declarations of interest were received.

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with an update on performance in the Revenues and Benefits Shared Service.

Decision

That the report be noted, with an update to be presented to the next meeting of the Committee on 23 November 2023.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided an update on Revenues and Benefits performance in respect of Quarter 1 for the financial year 2023/24.

The Revenues and Benefits Shared Service had now been in operation for twelve 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 global pandemic and then cost of living challenges 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 2023/24, in-year collection for Lincoln was up by 0.31% and North Kesteven was down slightly by 0.05% respectively, compared to June 2022. At the end of August 2023, City of Lincoln figures were up by 0.02% and North Kesteven down by 0.66%.At this early stage in the financial year, neither rate was a cause for concern.

In terms of the national context, latest figures for annual Council Tax in-year collection outturns 2022/23 saw City of Lincoln Council at 240^th (2021/22- 266^th) and North Kesteven 9^th (2021/22- 28^th) out of 309 local authorities whose performance was reported. Out of the seven Lincolnshire Districts, for 2022/23 City of Lincoln and North Kesteven achieved 6^th and 1^st highest collections, respectively.

Council Tax Support caseloads had recently been falling following a sharp rise during Covid-19, however, with ongoing cost of living pressures on residents there was potential this fall in caseloads may not continue.

In respect of Business Rates, up to the end of Quarter 1 2023/24 compared to the same point in 2022/23, in-year collection was down for Lincoln by 0.99%, North Kesteven down by 2.95% and West Lindsey down by 0.22%. There were no major concerns with in-year collection at this early stage of the year. For North Kesteven, a substantial amount of unallocated payments that had been made had now been identified, and these payments would be included as part of Quarter 2’s collection. It should also be noted that 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 for annual Business Rates in-year collection outturns 2022/23 saw City of Lincoln Council’s in-year collection at 22^nd (2021/22 48^th), North Kesteven 14^th (2021/22 1^st) and West Lindsey 162^nd (2021/22 170^th) out of 309 local authorities whose performance was  ...  view the full minutes text for item 10.

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with the first quarter’s (ending 30 June 2023) performance for the Revenues and Benefits Shared Service for 2023/24, as detailed at Appendix 1 to the report.

Decision

That the actual position at Quarter 1 as detailed within the report be noted.

Alternation Options Considered and Rejected

None.

Reason for Decision

The forecast overturn for 2023/24 predicted there would be an underspend against the approved budget of £94,240.

The approved budget for 2023/24 was agreed by the Shared Revenues and Benefits Joint Committee on 7 September 2023, which set a budget of £2,878,930 for the service.

At Quarter 1 the budget was increased to reflect New Burdens grants totalling £61,950, giving a revised budget of £2,940,890.

Financial performance for the first quarter of 2023/24 as detailed at Appendix 1 of the officer’s report resulted in an underspend against the approved budget of £17,251.

The forecast outturn for 2023/24 predicted that there would be an underspend against the approved budget of £94,240, as detailed at Appendix 2 of the officer’s report. The current forecast underspend would be affected by a number of other assumptions as detailed in paragraphs 4.4 and 4.6 of the officers report which would impact on the final outturn position.

The main forecast year-end variations against the approved budget for 2023/24 were noted within the table at paragraph 4.3 of the officer’s report.

A Job Evaluation Panel held on11 July 2023 had evaluated and approved the Benefits Appeal Officer role at Grade 6 (previously Grade 5), which was not yet reflected in the forecast outturn position, to be updated at Quarter 2. The impact of this job evaluation in the sum of £1,485,88 would be split at City of Lincoln Council: £861.81 and North Kesteven: £624,07.

Each Council had received a new burdens grant from Central Government to administer the Energy Support Scheme to the value of £14,950 for City of Lincoln Council and £21,790 for North Kesteven. By agreement these grants sat outside of the shared service budget.

The current MTFS assumptions reflected a pay award of 3% in 2023/24. However, given the latest nationally proposed pay award was again well in excess of this an estimate of the impact had been calculated at £110,610, split between each authority for City of Lincoln at £58,370 and North Kesteven £52,240. This offer was not yet accepted by the Unions, therefore this pressure was not reflected in the current forecast outturn position and would need to be reflected separately by each authority until an agreement was reached and the pay award implemented.

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with an update on current issues within non-domestic rates, related to City of Lincoln Council, North Kesteven District Council and West Lindsey District Council. The report was not intended to include non-domestic rate performance matters, as this was covered within the Performance Update reported to Joint Committee today.

Decision

That the content of the report be noted.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report included some of the changes announced as a result of Covid-19 and the support provided to businesses in the form of relief. The report also focused on the financial impact of recent appeals and reductions to rateable values.

Focus for both Government and billing authorities since the last meeting of Joint Committee had been a continuing response to Covid-19 measures announced since 11 March 2020.

The following updates were noted:

NDR Changes and Significant Reliefs/Discounts

At the Autumn Statement on 17 November 2022, the Chancellor of the Exchequer announced a continued Government package of business rate measures to support businesses in England:

• Retail, hospitality and leisure relief would increase from 50% to 75% up to £110,000 per business

• A freezing of the multipliers at 49.9p (small business multiplier) and 51.2p (standard multiplier)

• For the Supporting Small Business Scheme increases would be capped at £600 a year for any business losing eligibility for some or all Small Business Rate Relief or Rural Rate Relief at the 2023 revaluation.

• The scope of the discount for 2023/24 would return to pre-Covid-19 eligibility retail properties. Hospitality and leisure properties would continue to remain in scope, and the Rateable Value continued to be uncapped.

• At the beginning of the new Rating List, the transitional scheme for 2023 phased in large increases in liability for Non-Domestic Rates, however, unlike previous years, there was no phasing of decreases resulting in those customers feeling the benefit of any reduction in their rateable value immediately.

Retail, Hospitality and Leisure Relief 2023-24

Eligibility criteria for the Retail, Hospitality and Leisure Relief was set out by the Department for Levelling Up, Housing and Communities (DLUHC) and issued to Local Authorities on 20 December 2021, with no changes to the qualifying criteria for the year 2023/24. The table at paragraph 5.5 of the officer’s report reflected the significant reduction in the amounts awarded in the last three years (previously known as the Expanded Retail Discount (ERD) scheme), with an estimate on the award to be granted in 2023//24.

Potential reductions to rateable values were contained within paragraph 6, which included fire stations, hospitals, museums and hotels occupied by asylum seekers.

Business Rates Review

The final report for a Business Rates Review was also published at the Budget. The Budget and the Review committed in the longer term to improvements to the Business Rates system – which included;

·         More frequent revaluations, moving to a revaluation every three years starting from the next revaluation which came into force on 1st April 2023, the next  ...  view the full minutes text for item 12.

Purpose of Report

To provide Shared Revenues and Benefits Joint Committee with an update regarding various areas relating to the national welfare reform agenda, as well as current cost of living initiatives to support residents.

Decision

That the content of the report be noted, and a further update be presented at the next meeting of this Committee.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided Shared Revenues and Benefits Joint Committee with an update with regard to the national and local position of welfare reform/other initiatives, with a specific focus on Universal Credit, Discretionary Housing Payments, Household Support Fund, Energy Bill Support Schemes, Council Tax Support Fund and Financial Inclusion matters.

Universal Credit

The latest national figures published by the Department for Work and Pensions (DWP) were released on 15^th August 2023, with statistics relevant to the period up to June 2023:

• 5,965,178 households receiving UC (this was an increase from 5,836,354 as reported at the last meeting of this Committee).

Local authority statistics:

• City of Lincoln – 11,343 (11,305 as at the last report).
• North Kesteven – 6,789 (6,644 as at the last report).

Discretionary Housing Payments (DHP)

In June 2023, a letter was issued to City of Lincoln Council and North Kesteven District Council setting out commencement of Tax Credit cases managed migration to Universal Credit starting September 2023. Officers understood all Lincolnshire, Nottinghamshire and Rutland local authorities received the same letter, as had all areas of the country. Officers were working closely with the Department for Work and Pensions locally and nationally to fully understand the impacts moving forward.

On 23^rd February 2023, DWP announced DHP government grants for 2023/24. For City of Lincoln and North Kesteven, these were exactly the same amounts as for 2022/23; the national DHP allocation for 2024/25  ...  view the full minutes text for item 13.