Agenda and minutes

RESOLVED that the minutes of the meeting held on 30 May 2024 be confirmed and signed by the Chair as a true record.

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 21 November 2024.

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 2024/25.

The Revenues and Benefits Shared Service had now been in operation for thirteen years forming on 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 2024/25, in-year collection for Lincoln was down by 0.60% and North Kesteven was down by 0.33% respectively. At the end of August 2024, City of Lincoln figures were down by 0.48% and North Kesteven down by 0.29%. At this early stage in the financial year, neither rate was a cause for concern, although, as previously flagged to this Committee, Council Tax collection was generally lower at both regional and national levels - seeming to indicate that some tax payers were struggling to pay their bills as a consequence of cost of living pressures.

In terms of the national context, latest figures for annual Council Tax in-year collection outturns 2023/24 saw City of Lincoln Council at 246^th (2022/23- 240^th) and North Kesteven 20^th (2022/23- 9^th) out of 296 local authorities whose performance was reported. Out of the seven Lincolnshire Districts, for 2023/24 City of Lincoln and North Kesteven achieved 6^th and 1^st highest collections, respectively.

In respect of Business Rates, up to the end of Quarter 1 2024/25 compared to the same point in 2023/24, in-year collection was down for Lincoln by 0.60%, North Kesteven up by 2.27% and West Lindsey down by 1.82%. At the end of August 2024, the figures painted a relatively similar figure for in-year collection with Lincoln collection down by 0.65% compared to August 2023, North Kesteven down by 0.87%, and West Lindsey down by 2.42%. There were no major concerns with in-year collection at this early stage of the year. It should also be noted that collection has 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 2023/24 saw City of Lincoln Council’s in-year collection at 96^th (2022/23 22nd), North Kesteven 39^th (2022/23 14^th) and West Lindsey 95^{th  ...  view the full minutes text for item 40.}

Purpose of Report

To provide the Shared Revenues and Benefits Joint Committee with the first quarter’s (ending 30 June 2024) performance for the Revenues and Benefits Shared Service for 2024/25, 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 2024/25 predicted there would be an overspend against the approved budget of £84,580.

The current MTFS assumptions reflected a pay award of 3% in 2024/25, however given the latest nationally proposed pay award was in excess of this, an estimate of the impact had been calculated at £41,180, split between each authority as follows; City of Lincoln £21,640 and North Kesteven £19,540. As this offer was yet to be accepted by the Unions, it was still subject to change, but was included in the forecast above.

The approved budget for 2024/25 was agreed by the Shared Revenues and Benefits Joint Committee on 22 February 2024, which set a budget of £3,075,650 for the service.

At Quarter 1 the budget was increased to reflect New Burdens grants totalling £27,480, giving a revised budget of £3,103,130.

Financial performance for the first quarter of 2024/25 as detailed at Appendix 1 of the officer’s report resulted in an overspend against the approved budget of £6,882, including the nationally proposed pay award.

The forecast outturn for 2024/25 predicted that there would be an overspend against the approved budget of £84,580, as detailed at Appendix 2 of the officer’s report (including the nationally proposed pay award). It should be noted that at the end of quarter 2 postage for Revenues Local Taxation was to be reviewed, as there was potential for a reduction/underspend in this area which would significantly reduce the projected overall overspend.

The main forecast year-end variations against the approved budget for 2024/25 were noted within the table at paragraph 4.3 of the officer’s report.

It should be noted that through Household Support Fund wave 5 (HSF5) 2024/25, the following internal administrative costs to the Revenues and Benefits Shared Service had been claimed for, to be paid by Lincolnshire County Council (with national funding for HSF5 coming from Department for Work and Pensions); City of Lincoln £12,618, North Kesteven £8,675. These amounts would however not come into the Revenues and Benefits shared service budget and would stay in the individual local authorities’ budgets.

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 Government’s 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 of the Exchequer announced a continued Government package of business rate measures to support businesses in England:

• Retail, hospitality and leisure relief would continue for 2024/25 at 75% up to £110,000 per business

• A freezing of the small multipliers for a further year at 49.9p 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. This relief had been extended for the year 2024/25. 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 2024/25.

Potential reductions to rateable values were contained within paragraph 6, which included hotels occupied by asylum seekers.

Under Section 66(1) of the Local Government Finance Act 1988, a property was domestic if used for living accommodation with the only exception being in Section 66(2) which stated that a property was not domestic if being used in the course of a business providing short-stay accommodation to individuals whose sole or main residence was somewhere else.

Where a hotel was used as accommodation for refugees/asylum seekers, the occupants did not have a sole or main residence elsewhere. Therefore, the hotel should be brought into the Council Tax listings with the maximum charge being a Band H property.

The Valuation Office had recently removed a hotel from the Non Domestic Rating list and brought this into the Council Tax listings as a Band H Council Tax dwelling.(not in our districts) The result of this was a loss of Non Domestic Rating income to the authority which was not offset by the amount of a Council Tax paid for a Band H dwelling.

The Valuation Office were making changes to properties that they knew about, but as the Home Office would likely have a register of the properties being used  ...  view the full minutes text for item 42.

Purpose of Report

1.    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

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

2.    That Joint 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.

The national Welfare Reform agenda had a significant impact on residents of Lincoln and North Kesteven since 2013 when certain changes were introduced – such as Removal of Spare Room Subsidy, and Benefit Cap – and had continued as further changes had been introduced, such as the ongoing rollout of Universal Credit. These changes had resulted in major changes to the operating of our shared service, to ensure a proactive and positive response to welfare reform and the impacts on residents.

The Covid-19 pandemic and cost of living related matters had caused significant challenges to households locally and nationally. The Revenues and Benefits Shared Service played a lead and key role in developing deliverable schemes to help mitigate some of the impacts of cost-of-living challenges. Some of these schemes were directly delivered by this Service, some in partnership with other teams within the Councils, also with organisations such as those in the voluntary sector.

Universal Credit (UC)

The latest national figures published by the Department for Work and Pensions (DWP) were released on 9 July 2024, with statistics relevant to the period up to May 2024:

• 6,757,693 households receiving UC

(this was an increase from 6,458,756 as reported at the last meeting of this Committee).

Local authority statistics:

• City of Lincoln – 12,900 (12,495 as at the last report).
• North Kesteven – 8,172 (7,857 as at the last report).

On 25 April 2022, the Secretary of State for Work and Pensions made a statement in the House of Lords (Written statements - Written questions, answers and statements - UK Parliament) regarding managed UC  ...  view the full minutes text for item 43.