Agenda and draft minutes

RESOLVED that Councillor Sally Tarry be appointed as Chair for this meeting in the absence of Councillor Mary Green.

RESOLVED that the minutes of the meeting held on 19 September 2024 be confirmed and signed by the Chair as a true record, subject to the following typographical amendment to Page 13, Minute Number 43, ‘Cost of Living Support’ to read as follows:

On 2 September 2024, the Government announced an extension to the Household Support scheme. Department for Work and Pensions (DWP) stated there would be an extension to the Household Support Fund, for the next six months – i.e. 1 October 2024 to 31 March 2025.

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 26 February 2025.

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 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 it continued 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 some time

In respect of Council Tax, up to the end of Quarter 2 2024/25, in-year collection for Lincoln was down by 0.20% and North Kesteven down by 0.36% respectively. At the end of November 2024, (comparing to end November 2023),all Lincolnshire Districts’ Council Tax and Business Rates in-year collections were down. The figures would be circulated to members of Shared Revenues and Benefits Joint Committee after this meeting.

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, the 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 of those 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 2 2024/25 compared to the same point in 2023/24, in-year collection was up by 1.44% for Lincoln; North Kesteven down by 0.42% and West Lindsey down by 1.32%.

In terms of the national context, the latest available figures were for annual Business Rates in-year collection outturns 2023/24. City of Lincoln Council’s in-year collection was 96^th (2022/23 22^nd), North Kesteven 39^th (2022/23 14^th) and West Lindsey 95^th (2022/23 162^nd) out of 296 local authorities whose performance was reported. Out of the seven Lincolnshire Districts, for 2023/24, City of Lincoln, North Kesteven and West Lindsey achieved 4^th, 2^nd and 3^rd highest collections, respectively.

There were no major concerns with in-year collection at this early stage of the  ...  view the full minutes text for item 47.

Purpose of Report

To present to Members the first quarter’s (ending 30 September 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 2 as detailed within the report be noted.

Alternation Options Considered and Rejected

None.

Reason for Decision

The forecast outturn for 2024/25 predicted there would be an overspend against the approved budget of £29,390, as set out in Appendix 2.

The current Medium Term Financial Strategy (MTFS) assumptions reflected a pay award of 3% in 2024/25, however the nationally agreed pay award was in excess of this, and whilst the offer had since been accepted by the Trade Unions it was not paid until November 2024, as such 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

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, with no further changes at quarter two.

Financial performance as at the second quarter of 2024/25 as detailed in Appendix 1 to this report resulted in an overspend against the approved budget of £1,837, including the nationally agreed pay award.

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.

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 NDR relief, as well as forthcoming changes to the NDR system.

The following updates were noted:

NDR Changes and Significant Reliefs/Discounts

At the Autumn Statement on 30 October 2024, the Chancellor announced that the Government would continue to provide a package of NDR measures to support businesses in England.

• The retail, hospitality and leisure relief (RHL) would continue for 2025/26 at 40% up to £110,000 per business. Although this relief was to continue, the reduction from 75% to 40% would be significant for a lot of businesses.
• The multipliers were announced for 2025/26 – the small business multiplier would be frozen at 49.9p again. The standard multiplier would be uprated by the September 2024 CPI rate to 55.5p (2024/25 54.6p)
• Going forward from 2026/27 the Government intended to introduce two permanently lower multipliers for retail, hospitality and leisure properties. This would be paid for by a higher multiplier for properties with a rateable value (RV) of above £500,000. This meant that overall, there would be 5 different multipliers depending on the rateable value of the hereditament and the activities carried out at the hereditament. The details of these multipliers were not expected to be announced until the 2025 budget.
• Private schools were to lose their mandatory charity relief (80%) with effect from 1^st April 2025, subject to Parliamentary process. Private schools which were ‘wholly or mainly’ concerned with providing full time education to pupils with an Education, Health and Care plan would remain eligible for the relief.

Retail, Hospitality and Leisure Relief

Eligibility criteria for the Retail, Hospitality and Leisure Relief was set out by the Department for Levelling Up, Housing and Communities (DLUHC), now called Ministry of Housing, Communities and Local Government (MHCLG) and issued to Local Authorities on 20 December 2021. No changes were made to the qualifying criteria for the year 2024/25.

This relief had been extended for the year 2025/26 –whether there were any changes to the currently eligibility was pending the details being released by Government.

This was expected to end on 31 March 2026, with the introduction of the Retail, Hospitality and Leisure (RHL) multipliers.

The table at paragraph 4.5 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.

Multipliers from 2026

The most  ...  view the full minutes text for item 49.

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, and Financial Inclusion matters.

The national Welfare Reform agenda had impacted significantly 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 12 November 2024, with statistics relevant to the period up to September 2024:

Local authority statistics:

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 migration for working-age legacy benefits – with the aim of completing this migration by the end of 2024. A ‘Discovery Phase’ of migration had been taking place, with a number of areas around the country (not Lincolnshire) with a relatively small number of UC cases.

DWP released information to state those in receipt of Tax Credits would be asked to apply for UC by the end of 2024 (Tax credits are ending - Understanding Universal Credit). DWP also announced, through the Autumn Statement 2022, that the managed migration of Employment and Support Allowance (ESA) cases had been delayed to 2028/29. A further announcement was made on 19 April 2024 with plans to bring forward the managed migration of ESA cases. Notifications for this group commenced in September 2024.