Agenda and minutes

RESOLVED that the minutes of the meeting held on 23 November 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 30 May 2024.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided an update on Revenues and Benefits performance in respect of Quarter 3 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 3 2023/24, in-year collection for Lincoln was down by 1.47% and North Kesteven was up by 1.05% respectively. Figures for the end of January 2024 were similar again.

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. Officers were also looking into CTS take-up activity as it was felt that this possibly was being underclaimed by residents.

In respect of Business Rates, up to the end of Quarter 3 2023/24 compared to the same point in 2022/23, in-year collection was up for Lincoln by 0.09%, North Kesteven down by 2.92% and West Lindsey down by 0.24%. As at the end of January 2024, Lincoln and West Lindsey were still up, however, North Kesteven was down by 1.72%

The number of outstanding Revenues Customers at the end of Quarter 3 2023/24 was 849 (split Lincoln 550, North Kesteven 299) This was a slight increase from the figure at end of Quarter 2 2023/24 (total 782), however with significant demands on the team plus recruitment taking place in respect of vacant positions – the team had performed well to maintain (relatively) this position. Three newly recruited staff members were starting work in March 2024.

As at the end of Quarter 3 2023/24, in period collection of Housing Benefit overpayments stood at 107.42% for City of Lincoln, and North Kesteven 103.78%. These positive collection levels had continued in January 2024

Outstanding Housing Benefit overpayments debt also continued to decrease overall. As at the end of Quarter 3 2023/24: at £2,324,486 for City of Lincoln and £1,233,565 for North Kesteven.

As at the end of Quarter 3 2023/24, there were 2,099 Benefits customers outstanding and awaiting assessment (split Lincoln 1,481, North Kesteven 618). This was an increase from the total outstanding (1,696) at end of Quarter 2 2023/24. However, the team were working hard  ...  view the full minutes text for item 23.

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with the third quarter’s (ending 31 December 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 3 as detailed within the report be noted.

Alternation Options Considered and Rejected

None.

Reason for Decision

The forecast outturn for 2023/24 predicted there would be an underspend against the approved budget of £34,940, which included the newly confirmed 2023/24 pay award, which was paid in December 2023.

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. At quarter 3 further new burdens received totalled £13,300.

Financial performance for the third quarter of 2023/24 as detailed at Appendix 1 of the officer’s report resulted in an underspend against the approved budget of £9,000.

The forecast outturn for 2023/24 predicted that there would be an underspend against the approved budget of £34,940, which included the impact of the National Pay Awards paid in December 2023, which reflected an improvement of £35,250 from quarter 2.

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.

The key factor behind the improved position as at quarter three was the ongoing staffing vacancies which, as at quarter two, were expected to be recruited to during the second half of the year but were now expected to remain vacant until the end of the financial year. These savings were partly offset by the National Pay Award, which was significantly higher than the budgeted pay award estimate of 3% assumed within the Medium Term Financial Strategy (MTFS), alongside overtime costs which had been incurred due to the volume of vacancies that remained within the teams.

Purpose of Report

To present the Base Budget Forecast for the Revenues and Benefits Shared Service for 2024/25.

Decision

1.    That the Base Budget Forecast for the Revenues and Benefits Shared Service for 2024/25 be approved.

Alternative Options Considered and Rejected

None.

Reason for Decision

The  Delegation and Joint Committee Agreement required the Base Budget Forecast for the Revenues and Benefits Shared Service to be reported to members; this report met this requirement.

The Base Budget Forecast for 2024/25 was included at Appendix 1 to the report, including a full reconciliation to the previous Base Budget Forecast outlined in Appendix 2.

As a result of inflationary pressures there had been a significant increase in the base budget from last year, in the main, due to the significantly higher than anticipated pay award in 2023/24. As agreed nationally, the pay award reflected the higher of either, a flat rate increase of £1,925, or 3.5-3.8% to all employees, equivalent to a 9.4% increase for the lowest paid members of staff and with the majority of officers receiving pay rises above 5% for the second consecutive year, in comparison to the original budgeted estimate of 3%.

A minor numerical typographical error was noted within the appendices which would be corrected.

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 22 November 2023, the Chancellor announced that the Government would continue to provide a package of business rates measures to support businesses in England.

• The retail, hospitality and leisure relief would continue for 2024/2025 at 75% up to £110,000 per business

• A freezing of the small multipliers for a further year at 49.9p and an increase in the standard multiplier from 51.2p to 54.6p

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 1 April 2023, the next being 1 April 2026 and so on.

·         The process of revaluation started approximately 2 years before the new valuations came into force. For the revaluation due on 1 April 2023, the rateable value would be assessed based on the rental evidence on 1 April 2021. There would be a new duty on the ratepayer to provide the Valuation Office with the information

For each revaluation, the Government introduced a Transitional Relief scheme. Transitional relief limited how much a bill could change each year. As the NDR system was self-financing, historically these limits had limited both large increases and large decreases. In the Budget, the government announced a change to the Transitional relief scheme so that only increases were limited. For any reduction in the rateable value, a  ...  view the full minutes text for item 26.

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 16 January 2024, with statistics relevant to the period up to December 2023:

• 6,220,096 households receiving UC (this was an increase from 6,043,162 as reported at the last meeting of this Committee).

Local authority statistics:

• City of Lincoln – 11,878 (11,478 as at the last report).
• North Kesteven – 7,289 (6,946 as at the last report).

Discretionary Housing Payments (DHP)  ...  view the full minutes text for item 27.

Purpose of Report

As set out in the Shared Revenues and Benefits Business Case Delegation and Joint Committee Agreement, an annual Business Plan was presented to this committee each year for consideration and approval.

Decision

That the Revenues and Benefits Shared Service Business Plan 2024/25 be approved.

Alternative Options Considered and Rejected

None.

Reason for Decision

The Revenues and Benefits Shared Service Business Plan for the financial year 2024/25 was attached at Appendix 1 to the report and featured the following:

·         Key Achievements in 2023/24;

·         Savings in 2023/24;

·         Key Activities for 2024/25;

·         Strategic Priority Schemes 2024/25;

·         Towards Financial Sustainability projects 2024/25;

·         Key Risks;

·         Performance Management;

·         Safeguarding;

·         Equality Actions;

·         Working in Neighbourhoods;

·         Workforce Development;

·         Social Value;

·         Data Protection and Information Governance

·         Corporate Social Responsibility.

It was reported that the year 2023/24 had been another positive year for the Revenues and Benefits Shared Service, albeit very challenging with a whole host of post Covid-19 pandemic and Cost of living support related-initiatives. The impacts from Covid-19 had been significant and could not be underestimated, as were the ongoing impacts of rising cost of living challenges. The financial impacts on taxpayers and businesses had been substantial, which had understandably impacted on revenues collection – particularly in relation to Council Tax. The service continued to promote the ‘Get in touch, not in debt’ message – with a real focus on ‘welfare’ and income-maximisation for customers when making payment arrangements. Also, the increase in the overall Benefits workload as cost of living challenges continued to significantly impact, meant that staffing resources and priorities needed to be regularly ‘juggled.’

A number of additional demands had been placed on our Revenues and Benefits Service over the last twelve months, including;

-       Household Support Fund;

-       Council Tax Support Fund

-       Business Rates Relief

-       Increase in Benefits claims/changes/Universal Credit Changes

-       Alternative Energy Support Funds

-       Storm Babet Flood Support

-       Pressures and impacts from temporary accommodation, and reduced  Discretionary Housing Payments funding.

These additional demands should not be underestimated and understandably impacted on levels of performance in some areas. However, despite these major challenges, performance in most areas remained positive – officers were wholly committed to achieving the best possible standards of service to our customers.

The plan for 2024/25 continued to look at a range of key initiatives relating to areas including e-services, cost of living, as well as standards of performance.

It was agreed that officers would talk to our Communications team with an objective of bringing alive the business plan in order to celebrate its achievements for the wider audience to see.

Councillor Ric Metcalfe highlighted that he had been involved in the Revenues and Benefits Joint Committee and the Shared Partnership since its conception. He gave thanks to Martin, Tracey and all their staff for their extremely hard work over the years. This partnership was exemplary of benefits that could flow from working together. This was his last meeting, before he retired however, it was a superb service and he was happy to leave it in good hands and in great shape.

Councillor Sally Tarry thanked Councillor Metcalfe for all his support from the outset of the shared service and this committee over the past 13 years. She wished him a very happy retirement.