Agenda and minutes

RESOLVED that the minutes of the meeting held on 7 September 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

As set out in the Shared Revenues and Benefits Business Case Delegation and Joint Committee Agreement, an annual Business Plan was due to be presented to this committee by the end of November in advance of each year for consideration.

It was requested that the Business Plan report be moved to the Shared Revenues and Benefits Committee due to be held on 22 February 2024 to allow time to consider the announcements made by the Chancellor of the Exchequer in his Autumn Statement, and also that the wording section 30 of the Shared Revenues and Benefits Business Case Delegation and Joint Committee Agreement be amended to state:

·         Prepare and submit to the Joint Committee for its approval on or before 1^st March in each year an annual business plan, annual budget and annual delivery plan for the next Financial Year.

Decision

That the Revenues and Benefits Shared Service Business Plan 2024/25 be considered by Shared Revenues and Benefits Committee at the meeting due to be held on 22 February 2024 and that section 30 of the Shared Revenues and Benefits Business Case Delegation and Joint Committee Agreement be amended to:

• Prepare and submit to the Joint Committee for its approval on or before 1^st March in each year an annual business plan, annual budget and annual delivery plan for the next Financial Year.

Alternative Options Considered and Rejected

None.

Reason for Decision

The Shared Revenues and Benefits Shared Service Business Plan must be considered by committee by 1st March 2024. By moving the report to February 2024 it would allow more time to consider the announcements made in the Autumn Statement, and also in each financial year moving forward.

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 22 February 2024.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided an update on Revenues and Benefits performance in respect of Quarter 2 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 2 2023/24, in-year collection for Lincoln were down by 1.70% and North Kesteven was down by 1.08% respectively compared to the end of Quarter 2 2022/23. At the end of October 2023, there had been little change for both Lincoln and North Kesteven.

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 2 2023/24 compared to the same point in 2022/23, in-year collection was down for Lincoln by 3.43%, North Kesteven down by 6.48% and West Lindsey down by 8.30%. Therefore, in-year collection for Quarter 2 2022/23 was effectively ‘inflated’. It was expected that the level of shortfall in 2023/24 in-year collection rate would reduce over quarter 3 and then into Quarter 4. 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).

The number of outstanding Revenues Customers at the end of Quarter 2 2023/24 was 797 (split Lincoln 402, North Kesteven 362) – this continued the positive direction of travel and position, achieved through improved processes and recruitment to vacant roles within the team.

As at the end of Quarter 2 2023/24, in period collection of Housing Benefit overpayments stood at for City of Lincoln 108.72%, and North Kesteven 97.02%.

Outstanding Housing Benefit overpayments debt also continued to decrease overall. As at the end of Quarter 2 2023/24: at £2,402,885 for City of Lincoln and £1,258,896 for North Kesteven. Although North Kesteven had fallen below 100%, and outstanding debt had risen (but only by £1,759) – there were no concerns as collection remained high.

As at the end of Quarter 2 2023/24, there were 1,696 Benefits customers outstanding and awaiting assessment (split Lincoln 1,156, North Kesteven 540). This figure compared favourably to  ...  view the full minutes text for item 17.

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with the second quarter’s (ending 30 September 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 2 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 £112,170, however after accounting for the newly confirmed 2023/24 pay award, due to be paid in December , there was a minor overspend of £310.

The approved budget for 2023/24 was agreed by the Shared Revenues and Benefits Joint Committee on 23 February 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, there were no further changes as at Quarter 2.

Financial performance for the second quarter of 2023/24 as detailed at Appendix 1 of the officer’s report resulted in an underspend against the approved budget of £112,760.

The forecast outturn for 2023/24 predicted that there would be an underspend against the approved budget of £112,170 a deterioration of £17,930 from Quarter one. This, however, excluded the impact of the recently agreed national pay award which was, again, well in excess of the MTFS assumption of 3%. The impact of this had been calculated at £112,480, split between each authority as follows: City of Lincoln £56,470 and North Kesteven £56,010. The pay award was expected to be implemented in December 2023, and backdated to April 2023 and would therefore be fully reflected within the Quarter 3 report.

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 on 11 July 2023 had evaluated and approved the Benefits Appeal Officer role at Grade 6 (previously Grade 5). This was now reflected in the current forecast outturn position. The impact of this job evaluation totalled £1,485.88, which had been split as follows: City of Lincoln £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.

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 the Governments financial support provided to businesses in the form of business rates relief. The report also focused on the financial impact of recent appeals and reductions to rateable values.

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.

• The details of the transitional relief scheme and upward ‘capping’ were provided shortly after the autumn statement and were detailed in the table at 4.1 of the report.

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  ...  view the full minutes text for item 19.

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 17 October 2023, with statistics relevant to the period up to August 2023:

• 6,043,162 households receiving UC (this was an increase from 5,965,178 as reported at the last meeting of this Committee).

Local authority statistics:

• City of Lincoln – 11,478 (11,343 as at the last report).
• North Kesteven – 6,946 (6,789 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.

DWP had recently announced that in December 2023 they would further expand the ‘Move to UC’ into Berkshire, Buckinghamshire, and Oxfordshire, and that expansion for October through to December included a smaller number of Jobcentre Districts than previous months, as DWP brought in Couple Tax Credit claims and would be issuing migration notices to areas already within Move to UC activity. For migration notices that would have had a deadline date that fell between 11^th December 2023 and  ...  view the full minutes text for item 20.