Agenda item

Purpose of Report

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

Decision

That the report be noted and an update be presented at the next meeting of this Committee on 9 September 2021.

Alternative Options Considered and Rejected

None.

Reason for Decision

The report provided information on Revenues performance with regard to Council Tax for the City of Lincoln Council and North Kesteven District Council, together with business rates in respect of the City of Lincoln Council, North Kesteven District Council and West Lindsey District Council. This provided figures for the current year 2020/21 up to the end of financial year 2020/21, including annual outturn Revenues and Benefits performance for 2020/21.

Performance continued to be impacted by Covid-19 – a separate report on the impacts on Revenues and Benefits was included on today’s Committee Agenda. Officers had proactively responded to Covid-19, including;

-       Reduced levels of recovery action being taken in the first half of 2020/21 – only courts dates for summoned monies had been available (on 16^th December 2020 and 21^st January 2021);

-       Deferrals of Council Tax and Business Rates payments being permitted;

-       Processing a significant increase in Housing Benefit and Council Tax

Support claims, and Universal Credit related documents;

-       Assessment and award of new government reliefs and grants

The Revenues and Benefits Shared Service had now been in operation since 1^st June 2011, and performance had been maintained and improved whilst continuing to provide value for money. Continual improvement and success was being achieved in terms of both statistical and financial performance, as well as positive outcomes for customers of the partner local authorities. However, the Covid-19 global pandemic had understandably impacted on some areas of performance, - these impacts were likely to continue for many more months.

In respect of Council Tax for the financial year 2020/21, in-year collection was down for both the City of Lincoln and North Kesteven by 1.99% and 1.43% respectively, compared to the same point in 2019/20.

In respect of Business Rates, for the financial year 2020/21 (compared to the end of Quarter 2 2019/20), 2020/21 in-year collection was up by 0.08% for Lincoln, but down by 2.22% and 0.98% for North Kesteven and West Lindsey respectively.

The Lincoln figure in particular by the demographic of business types, remained somewhat ‘skewed’ by the new reliefs available this year in light of the new measures announced as part of the government’s Covid-19 response, predominantly the Expanded Retail Discount. North Kesteven collection was also significantly impacted by an unforeseeable large rateable valuation reduction (£1.5 million) from the Valuation Office Agency in March 2021.

Further outlined the NDR figures for 2020/21 which showed the key movements in the business rates bases over the last year as detailed at paragraph 4.8 of the report.

Further information relating to outstanding revenues customers and housing benefit overpayments was set out in the report. The latest figures as at the end of the financial year 2020/21, outstanding revenues stood at a total of 2,111- 1,309 of which 1650 were from the City of Lincoln and 461 were from North Kesteven. Although this figure had increased in recent months, this was as a direct result of the first and second Covid-19 national lockdowns ending and house moves increasing resulting in increased enquiries to the Revenues Team. The usual annual billing period during February and March also created significant levels of Council Tax enquiries – largely by telephone and email, limiting resources available to work on outstanding items in the Document Management System. The equivalent figure at the end of the financial year 2019/20 was 526 (split 371 Lincoln, 155 North Kesteven) – so there had been a notable increase in outstanding work.

In terms of benefits performance, the table at paragraph 5.2 of the report highlighted the time to process benefit claims at the end of the financial year 2020/21 for new claims compared to the end of financial year 2019/20 showed the City of Lincoln performing at 16.91 days and North Kesteven performing at 15.42 days. In relation to changes of circumstances the time to process benefit claims at the end of financial year 2020/21 compared to the end of the financial year 2019/20 showed the City of Lincoln Council performing at 2.88 days and North Kesteven performing at 2.56 days.

Provision of welfare and benefit advice given continued to be key with a team of dedicated and knowledgeable officers providing invaluable support to residents of Lincoln, as set out in further detail within the table at Paragraph 6.1 of the officer’s report.