insight - irrv.net
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INSIGHT
INSIDE: Performance management • Legal view• Shared services • Third sector view
SEPTEMBER 2012 £5.50 www.irrv.net
ISSN
136
1-13
05
The monthly journal of the Institute of Revenues, Rating & Valuation
Getting involvedin the debateTo coincide with the IRRV’s Scottish Conference,Insight presents a feature on life ‘north of the border’
IRRV INSIGHT
Managing Editor
John Roberts
Editorial Director
Lester Dinnie
Art Director
Don Tregartha
Designers
Clare Barker
Roddy Clenaghan
Copy Editor
Vicki Chastney
Publisher
Tregartha Dinnie Ltd
IRRV
Chief Executive David Magor, OBE IRRV (Hons) Northumberland House 5th Floor 303-306 High Holborn, London WC1V 7JZ T 020 7831 3505 E [email protected] W www.irrv.net
Enquiries Membership 020 7691 8996 Conferences 020 7691 8987 Subscriptions 020 7691 8996
Advertising T 020 7691 8979 E [email protected]
Editorial John Roberts IRRV (Hons) T 07952 659 258 E [email protected]
Tregartha Dinnie Ltd Ibex House, 5 Keller Close, Kiln Farm, Milton Keynes MK11 3LL T 01908 306500 W www.tregartha-dinnie.co.uk
IRRV Insight is produced by Tregartha Dinnie Ltd on behalf of the IRRV.
Unless otherwise indicated, copyright in this publication belongs to the IRRV.
September 2012 ISSN 1361-1305
© IRRV 2012. Reproduction in whole or in part of any article is prohibited without prior written consent. The views expressed in this magazine do not necessarily represent the views of the Institute. Whilst all due care is taken regarding the accuracy of information, no responsibility can be accepted for errors. Any advice given does not constitute a legal opinion.
IRRV Council: IRRV President Roger Messenger BSc (Est Man) FRICS FIRRV MCIArb REV; Senior Vice-President David Chapman IRRV (Hons); Junior Vice-President Richard Harbord MPhil CPFA FCCA IRRV (Hons) FIDP FBIM FRSA; Honorary Treasurer Allan Traynor FCCA IRRV (Hons); Phil Adlard Tech IRRV MlnstLM MCMI; Alan Bronte FRICS IRRV
(Hons); Robert Brown BSc FRICS FIRRV; Tracy Crowe CPFA FIRRV; Carol Cutler IRRV (Hons); Tom Dixon RD BSc (Est Man) FRICS IRRV (Hons); Ian Ferguson IRRV (Hons); Geoff Fisher FRICS (Dip Rating) IRRV (Hons) REV; Richard Guy FRICS (Dip Rating) IRRV (Hons) MCIArb; Mary Hardman IRRV (Hons) FRICS MCMI; Gordon Heath BSc IRRV (Hons); Julie Holden IRRV (Hons) MCMI CMg; Caroline Hopkins IRRV (Hons); Kerry Macdermott IRRV (Hons); Tony Masella MRICS MCIOB FIRRV AFA F.Inst.AM; Jim MaCafferty IRRV (Hons); Maureen Neave Tech IRRV; Nick Rowe IRRV (Hons); Peter Scrafton FIRRV FCIArb MRSA (Hons); Angela Storey Tech IRRV MCMI; Bob Trahern IRRV (Hons).
Chief Executive’s notes 05There’s an urgent need to scrutinise, consult, and plan, says David Magor
News and events 06
Education & membership 08
Running the Institute 10
From the archives 11
Performance management 22
Welfare reform 24
Shared services 25“Huh! What do academics know about shared services?”, I hear you ask, says Dominic Wallace
Council tax support 26
Management 27
Legal view 28Could the Valuation Tribunal England procedures be ‘too clever by half’?, asks Alan Murdie
Technology 30
Doherty’s despatch 32
Viewpoint 34
Regular items Features
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Cover STory 19Getting involved in the debateTo coincide with the IRRV’s Scottish Conference, Insight presents a feature on life ‘north of the border’. Ian Ballance, former President of the IRRV Scottish Association has been looking at the future shape of Scotland’s public services and David McLaughlin of Scott + Co is on hand to take the revenue collection industry in Scotland forward at pace
Editor’s welcome
What’s in the next issue ... – lots more pages of news and views in the
Annual Conference special edition!– incoming IRRV President Dave Chapman
in sharp focus– Paul Sanderson’s international travels
gather pace
Faculty Board update 12Proposed bailiff changes, business rate retention, and new faces on the Board, are all on Bob Trahern’s radar
Revenues roundup 13Alistair Townsend dusts down the role of the Law of Property Act receiver, and wonders whether an opportunity has been missed
Student focus 14The more things change, the more they stay the same, muses Bill Lovell
Third sector view 15Credit unions are tailor made for a role in the Universal Credit process, states Colin Holden
Valuation matters 16Success for landlords seeking to avoid empty rates. Hannah Dare of Penningtons provides a summary of two key recent cases on this contentious issue
Benefits bulletin 17Universal Credit rumbles on, says Maureen Neave, but all is not well
Faculty review
Summer is a busy time for the Institute in terms of events. Our September edition of Insight celebrates the first of them, with a feature highlighting the recent Annual Reception, hosted by our President Roger Messenger in early July on HQS Wellington, on the banks of the River Thames. The next major event in the calendar is the Scottish Conference, and our cover story turns its focus north of the border, in particular the preparations for, and content of, this key event. Continuing the theme, I’m sure readers are looking forward to the Annual Conference and Performance Awards gala dinner in Telford next month, where our 2012 award winners will be unveiled. Our October edition of Insight will be significantly increased in size to celebrate these events, and the November edition will bring you details of all the winners, together with reports of the key conference sessions. Reading the magazine is not as good as being there, though – there’s still time to book your place at these events, through www.irrv.net! Meanwhile, back in the current edition, we continue to bring you up to the minute news from the DWP as Universal Credit moves a step nearer, and we also introduce a new Institute product, designed to assist local authorities as the clock ticks towards implementation of their new council tax support schemes. Students across the discipline are well served too by offerings from Bill Lovell, Alistair Townsend, Peter Scrafton, and our ‘Valuation Corner’ page. Our management and leadership content is boosted this month by a contribution on performance management and a humorous but telling piece from Dominic Wallace on the shared service agenda. So enjoy this edition, and don’t forget that the magazine is even more effective when read in conjunction with attendance at IRRV events through the United Kingdom and beyond!
John Roberts IRRV (Hons) is Managing Editor of IRRV magazines
“We also introduce a new Institute product, designed to assist local authorities as the clock ticks towards implementation of their new council tax support schemes.”
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Day passes available from as little as £85.50
The Earl of Lytton, Lord Freud and
Stephen Timms MP to address this year s̒ conference
Complimentary exhibition
only passes available
to all non commercial
organisations*
IRRV Annual Conference and Exhibition3rd – 5th October 2012Telford International Centre
The Institute is pleased to announce that this year’s Annual Conference and Exhibition is to be held at the Telford International Centre from the 3rd to 5th October 2012.
It is an extremely challenging time for everyone working within the profession. Annual Conference will be an opportunity for practitioners and exhibitors to gather together and discuss the major issues. A variety of packages are available to delegates; the aim being to maximise attendance at what is the major event in the Institute’s calendar.
Sessions include:
The Recession in ContextTony Travers, Director, Greater London Group, London School of Economics
Managing a Recession in a Deprived BoroughEleanor Kelly, Chief Executive, Southwark LBC
Managing Discretionary Payment –Including the Social Fund and Crisis LoanSian Ferguson, Head of Revenues, Durham Unitary Authority
The Social Impact of Welfare ReformGeoff Fimister, Social Policy Officer, Citizens Advice
The Challenge of ChangeDominic Cain, Assistant Director (Revenues and Benefits), Southwark LBC
Welfare Reform – An Opposition ViewSteven Timms MP, Shadow Employment Minister
Welfare Reform – A Progress ReportLord Freud, Minister for Welfare Reform
For the full programme and fee’s or to book please visit www.irrv.net/conferences/meeting.asp?Mid=1366
What’s included
We offer outstanding value for money: our full conference package includes buffet lunches and refreshments, wine receptions and admission to our Gala Dinner and Awards night.
Exhibition and sponsorship
For exhibition and sponsorship enquiries please contact Kate Artus on 020 7691 8981 or email [email protected]
* To apply for a complimentary exhibition only pass please contact [email protected]
Day passes available from as little as £85.50
The Earl of Lytton, Lord Freud and
Stephen Timms MP to address this year s̒ conference
Complimentary exhibition
only passes available
to all non commercial
organisations*
IRRV Annual Conference and Exhibition3rd – 5th October 2012Telford International Centre
The Institute is pleased to announce that this year’s Annual Conference and Exhibition is to be held at the Telford International Centre from the 3rd to 5th October 2012.
It is an extremely challenging time for everyone working within the profession. Annual Conference will be an opportunity for practitioners and exhibitors to gather together and discuss the major issues. A variety of packages are available to delegates; the aim being to maximise attendance at what is the major event in the Institute’s calendar.
Sessions include:
The Recession in ContextTony Travers, Director, Greater London Group, London School of Economics
Managing a Recession in a Deprived BoroughEleanor Kelly, Chief Executive, Southwark LBC
Managing Discretionary Payment –Including the Social Fund and Crisis LoanSian Ferguson, Head of Revenues, Durham Unitary Authority
The Social Impact of Welfare ReformGeoff Fimister, Social Policy Officer, Citizens Advice
The Challenge of ChangeDominic Cain, Assistant Director (Revenues and Benefits), Southwark LBC
Welfare Reform – An Opposition ViewSteven Timms MP, Shadow Employment Minister
Welfare Reform – A Progress ReportLord Freud, Minister for Welfare Reform
For the full programme and fee’s or to book please visit www.irrv.net/conferences/meeting.asp?Mid=1366
What’s included
We offer outstanding value for money: our full conference package includes buffet lunches and refreshments, wine receptions and admission to our Gala Dinner and Awards night.
Exhibition and sponsorship
For exhibition and sponsorship enquiries please contact Kate Artus on 020 7691 8981 or email [email protected]
* To apply for a complimentary exhibition only pass please contact [email protected]
The pace of change in the delivery of the government’s localisation programme is quite frightening.
There are two major changes in the financing of local
government which have produced significant draft proposals
and need detailed scrutiny to ensure they are delivered in a
manner that enhances the function of sub-national government
in Great Britain and Northern Ireland.
The matters concerning business rates run to well over
200 pages, and contain wide ranging proposals that affect
all the professional disciplines within the Institute’s range
of activity. The reality is that these proposals fundamentally
change the mechanics of the levy and its collection, as well as
posing real challenges for those who carry the responsibility
to prepare and manage budgets for sub-national government
in England. We have yet to see the response of the devolved
administrations in Wales and Scotland in relation to the
business rate change, but if their reaction to the council tax
proposals is anything to go by, we can expect an innovative
response. The role of billing authorities, precepting authorities,
the Valuation Office Agency and the response of the ratepayer
will need careful consideration. In particular, billing authorities
need to carefully manage decisions in respect of funding and
the pooling arrangements, if conclusions are reached before
the end of the financial year.
Turning to council tax, we see a patchwork of reforms which,
it could be argued, range from the sublime to the ridiculous.
On one hand we have proposals to change the discounts and
There’s an urgent need to scrutinise, consult, and plan, says David Magor, as business rate and council tax changes rapidly approach
exemptions which are designed to influence behaviour and
raise revenue, and the sadness is that they may not achieve
either objective. On the other hand, we have a reform of
council tax benefit, which at best could be described as
challenging, and at worst be described as reckless.
The volume of work associated with these reforms is
enormous. The officials at the Department for Communities
and Local Government (DCLG) are working hard to deliver the
changes in a timeframe that is close to impossible. I have to
say that in the whole of my involvement in local government,
which is over forty years, I have never see such dedication to
duty as that being displayed by the DCLG team.
The knock on effect of the changes will be felt by those who
service the processes, in particular the Valuation Office Agency
and the Valuation Tribunal Service, who will see an appreciable
increase in their work as the new policies roll out.
There are exciting times ahead. The Institute’s membership
should embrace them and meet the challenges that they pose.
Chief Executive’s notes
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5David Magor OBE IRRV (Hons) is Chief Executive
of the Institute
“The reality is that these proposals fundamentally change the mechanics of the levy and its collection.”
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News and events
We are sailing... again... at the IRRV’s Annual Reception Once again the Institute’s Annual Reception took to the waters of the River Thames, albeit without leaving the shore! The fascinating surroundings of HQS Wellington, berthed at Temple Stairs, provided the accommodation this year for the Reception...
The Reception, which provides an opportunity for
the President and his guests to get together and share
business and personal experiences, is also a chance
for the Institute to say a big ‘thank you’ to its
many supporters, both within the Associations
and in the form of sponsors, exhibitors, and
key figures within government and sister
organisations. A good night was had by all, as can
be seen from the accompanying photographs.
During the event, President Roger Messenger took the opportunity to invite
guests both human and canine to illustrate
the work of his chosen charity, Canine Partners, an organisation which assists
people with disabilities to enjoy greater
independence and a better quality of life,
by providing specially trained assistance dogs.
If you would like to make a donation to the
organisation, go to www.caninepartners.co.uk.
Past Presidents’ and Honorary Members’ luncheon ...HQS Wellington was also the venue for the annual Past Presidents’ and Honorary Members’ luncheon, again hosted by the President, Roger Messenger.
Another impressive attendance of office holders past and present
gathered together to share memories at this event, and in particular
to listen to Past President Peter Fairhurst’s poignant reminder
of the words of Robert Louis Stevenson:
If nobody gave us a helping hand,
And nobody seem’d to care,
If the prizes of life all went to the strong,
And nobody gave us a share,
If nobody had the time to give
A thought to you and me,
And we had to struggle the best we could,
What a hopeless world ‘twould be.
Giving a hand to help the weak,
May lighten a heavy load,
Giving our best with a willing heart,
May brighten a lonely road.
‘Tis on something to live for, on someone to love,
That the purpose of life depends,
And there is nothing to equal the gladness and joy
Of making and keeping friends.
These words appeared in the former Rating and Valuation Association’s journal many years ago (I have spared Peter from
publishing the precise year in view of drawing attention to his
age – Editor!), but it seems to spell out very appropriately the
purpose of our professional body in the past, present, and we
very much hope the future too.
Photography is courtesy of Institute Council member Richard Guy
and Andrew Mardell of ARM Photography.
The President and guests gather for lunch
Past President Peter Fairhurst pauses for thought during his speech
The Reception entertainment
The IRRV Council
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News and events
Full steam ahead for IRRV Performance AwardsThe IRRV Performance Awards inspection teams are busy at work, preparing for the long-awaited announcements that will reveal the 2012 winners.
If you haven’t booked your place at the flagship gala dinner and
Performance Awards event where all is revealed – to be held on the
Thursday of Annual Conference week, 3rd to 5th October 2012 –
there’s still time to do so. Go to www.irrv.net for further details.
There are one or two adjustments to the list of finalists announced
in August Insight and available on the website. Elevate East London
are now included in the categories of Most Improved Team of the year (single service) and Excellence in Innovation, and in Excellence in Partnership Working, the arvato entry is now
‘arvato UK and Ireland in partnership with Sefton MBC’.
LATEST NEWS
No shortage of groundbreaking cases!After a few barren years for new case law, a number of key
cases have started to emerge, and they are well worth checking out.
Commentary on them will be provided in the pages of the Institute’s
magazines over the coming months. In particular, we highlight the
following decisions:
• Mayday Optical Co Ltd v Kendrick VO (invalidity appeal issues)
• Imperial Tobacco v Alexander VO (invalidity appeal issues)
• Friends Life Company Ltd v Alexander VO (completion notices)
• Makro Properties Limited and another v Nuneaton and
Bedworth Borough Council (empty rates)
• Chester and West Chesire Council v Public Sectors
Charitable Trust (empty rates).
Watch this space...
IRRV Wales Conference sponsorship thanksFollowing the report in August
Insight on the successful
2012 Wales Conference,
the North/MidWales
and South Wales Associations wish to add
a warm ‘thank you’ to
RB Performance, for their
generous sponsorship of the event.
IRRV Annual Conference & Performance Awards
Telford International Centre3rd – 5th October 2012Book on www.irrv.net
Initial Universal Credit pilot ‘long list’ announced The Department for Work and Pensions (DWP) and the Local Government Association (LGA) have named fifteen local authorities in England recommended as potential pilot sites for Universal Credit. The pilots will focus on delivering the face to face support some
people may need to make claims for the new benefit, including online
support, help with budgeting and job searches, reducing fraud and
error, and reducing homelessness. From these recommendations,
DWP will now make a final selection of those that will go ahead in
the autumn.
Minister for Welfare Reform, Lord Freud said, “Local authority
led pilots will provide a unique opportunity for councils to shape
the development of Universal Credit . All the recommended local
authorities offer very exciting ideas on how they might help people
with their claims for Universal Credit and progress into work. We are
now working through the long list with a view to announcing the final
dozen or so successful authorities across Great Britain.”
Sir Merrick Cockell, Chairman of the LGA, said, “It is vital that
local people are fully supported when these benefit and tax credit
changes come into place. Councils have a central role to play in
providing face to face assistance and advice in the new welfare system,
as they have a strong understanding of local job markets and the
needs of their residents. These councils have put forward some positive
proposals for taking the pilots forward, and they will play an important
role in working towards a smoother rollout later next year.”
The announcement follows close discussion with Lord Freud and
the LGA, which resulted in the LGA recommending the 15 local authorities out of 38 proposals. A separate selection process is
underway for local authorities in Wales and Scotland.
The 15 authorities in England recommended are:
Barnet Bath and North East Somerset Birmingham Hammersmith and Fulham (in consortium with
Kensington and Chelsea, Wandsworth and Westminster)
Leeds Lewisham Melton Newcastle under Lyme North Dorset Oldham Oxford Rushcliffe A consortium of North Yorkshire authorities led by:
Scarborough West Lindsey, and
Wigan.
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Education & membership
Annual Conference & Performance Awards
Telford International Centre3rd – 5th October 2012Book on www.irrv.net
2 Business Administration and a Level 3 IRRV
Diploma with the Welfare Education Service. My
assessor, Mike Cahill, was a great support to
The IRRV Level 3 Diploma in Local Taxation and Benefits (QCF) went live in May 2011.
The QCF is the Qualifications and Credit Framework, which is the national way of
accrediting qualifications. Simply put, each unit
of a qualification is worth a number of credits.
Once the correct combination of units has been
achieved, a qualification is achieved.
The IRRV QCF Diploma replaces the NVQ
qualification, and has been an opportunity to
review the content of the vocational qualifications.
The first successful candidate under the new
scheme is Sarah Cameron (pictured), who
works at Hackney London Borough Council. She undertook the QCF Diploma following the
local taxation pathway. Under this, Sarah had to
complete six practical units and five knowledge
units. The knowledge covered local taxation
law, benefit law, appeals and the administration
of local taxation and benefit services.
Sarah began in July 2011 with an induction
into the qualification with her assessor, Mike Cahill from the Welfare Education Service
(part of the Welfare Advice Service CIC). She
completed her qualification in January 2012.
How does Sarah feel about the qualification?
She says, “During my apprenticeship contract at
Hackney Council, I have completed an NVQ level
Insight celebratesthe first IRRVQCF success!
IRRV new vocational qualification successes. Insight congratulates the following on their recent success:
NAME EMpLoyERNVQ IN HouSINg AND CouNCIL TAx BENEFITS David Williams Conwy County CouncilSteven Lit tle Mansfield Distric t CouncilLynn Brason Cornwall CouncilClare Susan Watts West Oxfordshire Distric t CouncilCherie Hinchlif fe Kirklees Metropolitian Borough Council
NVQ IN LoCAL TAxATIoNWendy Gibbs Bassetlaw Distric t CouncilSally Le’Avy Tandridge Distric t Council
NAME EMpLoyERLEVEL 3 QCF gENERIC pATHWAyDawn McEwan Dacorum Borough Council
LEVEL 3 QCF REVENuES pATHWAyPaul Harris Dacorum Borough CouncilTina Bloomfield Isle of Wight CouncilCarly Payler Harrow London Borough Council
me, and provided assistance whenever needed.
This support enabled me to complete this
qualification sooner than expected.
Gaining this qualification has given me a
better understanding of my council’s policies
and procedures, and the relationship they
have with the laws set by central government.
As a result, I have progressed within the
department, and have a wider range of
responsibilities, which allow me to put my
qualification into practice.
I would recommend this course to anyone
who works within the revenues and benefits field
and who wishes to gain better understanding of
the reasons for your work practice.”
Sarah’s assessor, Mike Cahill says, “Sarah was
an excellent candidate, and it was a pleasure
to see her knowledge increase and her skills
develop during the assessment of the QCF
Diploma. It was also interesting to see the
difference between the old NVQs and the new
qualification, as it became evident that it was
much more relevant to Sarah’s real work, but
also gave her a broader understanding of the
role of her department. I look forward to more
candidates making the most of this opportunity.”
Sarah is the first candidate to complete
this qualification, but many more are currently
working their way through it. We wish them
all success, and if anyone wants to know
more about this qualification, please get in
touch with the IRRV’s education section on
Further information about the Institute’s activities can be obtained from the following sources:
Distance LearningContact [email protected] or phone 020 7691 8984
Conferences and meetings Contact [email protected] or phone 020 7691 8987
Publications Contact [email protected] or phone 020 7691 8977
Policy and research Contact [email protected] or phone 020 7691 8993
Education and examinations Contact [email protected] or phone 020 7691 8979
For other information 41 Doughty Street London WC1N 2LF T 020 7831 3505 F 020 7831 2048 www.irrv.org.uk E [email protected]
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Student members Name employerSylvia Balram Lewisham London Borough CouncilMaria Demetriou Enfield London Borough CouncilMark Puis Enfield London Borough CouncilAlison Smith Enfield London Borough CouncilMichael Wright Nor th Tyneside CouncilMarion Macleod The Highland CouncilLora Rober tson The Highland CouncilLucy Lowin Runnymede Borough CouncilGabrielle Westwood Runnymede Borough CouncilErin Edwards Rushmoor Borough CouncilRoselyn Muller Eddisons Commercial
Technical members Name employerCheryl Wilkins Exeter City Council
Organisational members Name oF orGaNISaTIoNJBW Group Ltd
Corporate members Name employerJohn Unsworth BT Global ServicesPaul Ellicot t Haringey London Borough CouncilKetan Sheth KSL SolicitorsPhyllis Kennedy Aberdeen City Council
Honours members Name employerSimon Salisbury Simon NeilSimon Wanderer Simon Alexander Consulting LtdGyles O’Brien Aitchison Raf fetyAlan Power Watford Borough CouncilAnthony Rosenthal Gerald Eve LLP
QCF/SVQ members Name employerGiovanna BonacciDella Feuillade Southwark London Borough CouncilSam Kay Redbridge London Borough CouncilHelen Keat tch Southwark London Borough CouncilTerry Oakey Luton Borough CouncilMercedes Owens Southwark London Borough CouncilJamie Pentney Southwark London Borough Council Marie Samm Luton Borough CouncilJake Sexton Luton Borough CouncilJacqueline Kirk Ashford Borough CouncilKristina Smith Ashford Borough CouncilSusan Clenton Isle Of Wight CouncilClaire Yeo Isle Of Wight CouncilWilliam Tunniclif fe Leeds City Council
Fellow members Name employerN Winbourne Winbourne Mar tin FrenchShirley Yates Nor th Ayrshire CouncilSean Langley Self Employed
New members
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Running the Institute
Commercial Services CommitteeThe meeting was chaired by Carol Cutler – key
reports considered by Committee included:
• sales and sponsorship
• conferences (including Performance Awards)
• professional meetings and training courses
• Forum (and Benefit Advisory) Services
• update on activities in Scotland and
Northern Ireland
• Communications Working Group (magazines,
website and publications).
Committee received an update on sales
and sponsorship, and were informed of
the arrangements that were in place for
the remaining conferences in 2012. The
Collection and Enforcement Conference
held in April was reviewed – feedback from
delegates and exhibitors indicated a very
successful event. As a consequence, the
decision was taken to run the Benefits and Collection and Enforcement Conferences
at Keele next April. The programme for
Annual Conference in October was
approved, and an updated programme for
professional meetings and training courses
duly agreed.
Education and Membership CommitteeThe meeting was chaired by Julie Holden –
key reports considered by Committee included:
• qualifications
• membership (including a strategy to
Increase membership)
• electronic learning
• Recognised European Valuer
• IRRV courses
• Royal Agricultural College diploma and degree.
Committee received a report on the existing
qualifications, together with the planned
qualifications in enforcement and the non-
domestic rate. There was also discussion on
the existing Level 3 Certificate and Diploma
syllabus, as a result of the changes currently
taking place in benefits. This was referred to the
Syllabus Review Committee, as decisions
needed to be taken in advance of the next
meeting. There was considerable discussion
on membership – reduced numbers sitting the
The IRRV’s London headquarters was again
the venue for the third cycle of quarterly
council meetings in 2012, held in July. Policy and Resources Committee (and the three
Standing Committees) met on the Monday,
and following the Annual Reception that
evening, Council then came together for their
meeting on Tuesday morning. A summary of
what was discussed is detailed below:
CouncilThe meeting was chaired by the President, Roger Messenger – key reports considered included:
• reports of Standing Committees
• update on Associations
• Council elections 2012
• Chief Executive’s report
• President’s report.
Policy and Resources Committee The meeting was chaired by Richard Harbord
– key reports considered by Committee included:
• management accounts as at 31st May 2012
• administration
• media and marketing.
The management accounts as at 31st May 2012
were received and discussed in detail. As with all
organisations, there is a need to keep costs down
whilst still maximising income. However, whilst
it is relatively straightforward to establish costs
for the remainder of the year, it is much more
difficult to predict the income. It was agreed
that the Honorary Treasurer would work with
officers and agree a forecast for 2012 that was to
be reported to Committee by the end of July.
The report on administration covered a wide
range of issues affecting the governance if the
Institute, including accommodation, IT, finance
and staffing. On media and marketing, it was
agreed what the Institute needs to do to raise its
profile, improve its image and how best to bring
products and services to the market place. It was
not a case of carrying out a ‘make-over’ or ‘re-
branding’, simply understanding the future role to
be played by the Institute and what members are
looking for it to provide.
Gary L Watson IRRV (Hons) is Deputy
Chief Executive of the Institute
examinations was having an impact, and it was
important that a strategy was in place to attract
and retain members. This would be taken
forward outside of the meeting. On electronic
learning, this had now been re-branded, and
would be known as ‘on-line training’ rather
than ‘Euclidian’.
Law and Research CommitteeThe meeting was chaired by Dave Chapman –
key reports considered by Committee included:
• reports of the three Faculty Boards
• meetings with government bodies
• research, consultancy and educational
funding streams.
Since the last meeting, the Institute (through
the Faculty Boards) had been actively
involved in putting together responses to the
following consultation documents (copies of the
responses are available on request):
• proposed changes to Valuation Appeals
Regulations (Scotland)
• Mandatory Consideration of Revision before
Appeal (England, Wales & Scotland)
• Transforming Bailiff Action (England & Wales).
An update was also received on three
consultation documents currently being
considered by the Faculty Boards. These were:
• Localised Support for Council Tax funding
arrangements (England)
• new rules for the Property Chamber (England
& Wales)
• proposed changes to Valuation Appeals
Regulations (Scotland).
Although a number of reports are deemed
to be ‘commercially sensitive’ (particularly
those considered by Commercial Services Committee, where a number of papers
are only circulated to those that sit on this
committee), National Council remains keen for
the membership to be made aware of matters
discussed at the quarterly cycle of meetings.
Should members require further information
on any of the reports considered by National
Council at this cycle of meetings, they should
contact Gary Watson (Deputy Chief Executive)
Gary Watson presents his regular roundup of the Institute Council’s quarterly meetings
Roger Messenger Richard Harbord Carol Cutler Julie Holden Dave Chapman
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Following a short meeting of the Executive Committee on 22nd January 1887, the fifth Annual General Meeting of the Association was held. The Annual Report was taken as read, and the President then commented on the issues that had faced the Association in the previous year. In particular, he made reference to the Registration of Voters that had attracted significant attention during the last session of Parliament, and was again back on the agenda for the coming year.
The chair remarked that if new responsibilities and additional duties were intended to be imposed on rate collectors, they should receive exceptional remuneration. The matter had engaged the committee during the past twelve months, although the resignation of Mr William Ewart Gladstone as Prime Minster (to this day, the oldest PM, at 84 years old), brought everything to an abrupt halt. The President went on to express surprise that, in the current climate, some rate collectors had still to join the Association.
With all officers elected for a further term of office (and Mr Tupper having had his annual honorarium of 15 guineas approved), the chairman invited discussion on the Benevolent Fund. Mr Parkhouse (he who was bitten by a dog), who had initially proposed the introduction of a fund, expressed disappointment that it was not being more widely supported by members. He therefore recommended that any ‘cash in hand’ be banked and a sum of ten guineas be transferred from the General Fund to the Benevolent Fund.
There were opposing views expressed; most notably from Mr Parks and Mr Giles,
who took the view that the General Fund should be used for emergencies, and not to fund the Benevolent Fund. On putting it to a vote, the motion was lost. The meeting concluded with a proposal that at the next Annual General Meeting, Members of Parliament and the press be invited. Just what level of interest there was in attending the AGM will be reported on in the next edition of Insight.
For those members that have been left in suspense since the last edition of Insight, I can now report on what is recorded in the Minute Book in respect of the annual dinner that took place following the Annual General Meeting. Readers may have been asking themselves whether the Dinner Committee opted for a ‘Glee party’, or if the artistes from previous years were invited back. Sadly, we may never know, as there is no record of the event in the Minute Book!
A plea to the current membership – if any reader knows of someone who may have attended the dinner on 22nd January 1887, can they please be put in touch with me so I can fill this gap in the Institute’s history!
To help jog one’s memory, that afternoon saw a thrilling 3-3 draw (aet) between Aston Villa and Wolverhampton Wanderers in the 3rd round (2nd replay) of the FA Cup. For the record, Aston Villa won the 3rd replay 2-0 before going on to win the FA Cup 2-0 against West Bromwich Albion.
When the Executive Committee next met, on 18th June, the President reported on two bills that were currently before Parliament – these being the Metropolis Local Government Bill and the Voters Qualification & Parliamentary Elections Bill. The Secretary then reported that, to
date, 98 members had paid their annual subscriptions (no 12 monthly instalments payable by direct debit then) and 29 had contributed to the Benevolent Fund. It was agreed the Secretary chase up those who had not paid.
At their meeting on 19th November, the Executive Committee was informed that 137 members had now paid their annual membership fee, although no additional members had made a contribution to the Benevolent Fund. The viability of having a Benevolent Fund was discussed, as it continued to only receive partial support from the membership. It was agreed that its future be brought forward as a special item to the next General Meeting.
The date for the next Annual General Meeting was then agreed as 21st January 1888 - this would take place at 4.45pm and be preceded by a meeting of the Executive Committee at 4.00pm. The dinner would then follow at 5.30pm. It is evident from the Minute Book that there was a real desire from members of the Executive Committee to be elected on to the Dinner Committee, a group that was chaired by the President!
One could say a member had reached the pinnacle of their career if they were elected to the Dinner Committee. At their meeting on 17th December, the details for the dinner in January were agreed, with arrangements for engaging artistes to perform at the event being left in the capable hands of the President and Secretary. There is no indication in the Minute Book as to what the President and Secretary had planned, other than to say their challenge then is very much replicated by my challenge today!
We’re getting nearer... Gary Watson’s trawl through our organisation’s
archives moves into 1887!
Gary L Watson IRRV (Hons) is Deputy
Chief Executive of the IRRV
From the
“The President went on to express surprise that, in the current climate, some rate collectors had still to join the Association.”
Members are invited to contribute towards the feature and come forward with their own personal memories of the Institute. The Deputy Chief Executive is also happy to try and answer any questions on the Institute’s history. Contact him on [email protected]
Faculty Board update
12
Proposed bailiff changes, business rate retention, and new faces on the Board, are all on Bob trahern’s radar, as Insight presents his report on the work of the Local Taxation and Revenues Faculty Board
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Bob Trahern IRRV (Hons) is a Past
President of the Institute, member of the
IRRV Council, and Chairman of the Local
Taxation and Revenues Faculty Board
work on the authority’s behalf. We have stated
that the fee structure should recognise that
whilst debtors should be responsible for the
costs incurred in collecting the debt from
them, costs incurred in seeking unsuccessfully
to collect in other cases (abortive work)
should not be recouped by additional costs
on those debtors from whom successful
collection is made. We argue that this should
be the responsibility of the local authority, who
in turn may make contractual arrangements
with any agents acting for them as to how
abortive work is funded.
The Board has also considered what the
requirements of billing authorities will be in
order to ensure that they are properly advised
on valuation matters with the new business rates retention scheme. The Valuation
Office Agency has been proactive in this
matter, seeking to establish from an early
stage what local government needs will be to
run the new system. ‘We simply need all the
data that we had when we used to calculate
the penny rate product’ was one pithy
comment that emerged at the last meeting
– this also inadvertently served to identify
those in the meeting who had worked in the
pre-community charge days of local authority
revenues! The Board will continue to offer
assistance in developing the necessary system
data parameters.
The Board is currently drawing up its response
to the DCLG’s technical consultation on the
business rates retention scheme, which
closes on 24th September. This 250-page
document seeks views on a range of detailed
and technical issues concerning the transition
from the current formula grant system and the
initial implementation of the scheme from April
2013. That was the summer holiday reading
sorted for Faculty Board members, then!
Don’t forget you can always contact me via
A little light reading over the summer...that only one remedy may be applied at a
time. The rules should recognise that local
authorities are, at any time, empowered to
authorise the taking control of goods once
a liability order has been issued. In a small
number of cases, enforcement may take a
period of years for reasons outside the local
authority’s control, therefore local authorities
should be able to return to the taking control
of goods remedy as and when necessary,
as they can apply other remedies under the
liability order without a further resort to court.
The consultation paper states a notice of
enforcement must be sent giving seven days’
notice. Currently we are required to send a
notification 14 days in advance. We sought
clarification about whether the seven days’
notice would be in addition to the 14 days
notice, or if it was to replace the 14 days notice,
or if the seven days’ notice could be included
in the 14 days notice. Many practitioners feel
that seven days’ notice could result in more
aggressive action being undertaken.
Local taxation law, both council tax and
rates, makes it clear that fees included in
enforcement belong to the billing authority
and are enforceable and collectable by the
authority, although in practice many authorities
employ private contractors to undertake the
I start this month’s piece with news
about changes in the LTR Faculty Board’s
composition. Paul Rudd and Roy Tilbury have
both recently stepped down from co-option
duties, after sterling service over four and six
years respectively. I am grateful to them for
their input to the work of the Board during
this time.
Amrik Boghan joins us as a newly co-opted
member for the coming year. Amrik is Level 3
qualified and has worked in local government
for twenty-six years. She currently is the West
Midlands Association’s Vice President and
Education Liaison Officer. Her enthusiasm for
the task ahead bubbled out of her ‘personal
statement’, and I am pleased to welcome her
on to the Board.
I covered in the last article that the Institute
response to the Transforming Bailiff Action consultation paper was close to being
finalised. In addition to addressing the set
questions, we raised various important issues
that had not been fully addressed in the
paper. The full 21 page response can be found
on the IRRV website, but it is worth pulling out
a couple of points here.
We raised concerns about the cost and time
delay that may arise regarding applications to
court. For council tax, and to a lesser extent
rates debts, existing statutory powers are
given to local authorities to determine which
of the authorised enforcement remedies
should be adopted. Authorities are permitted
by law to switch enforcement from one
remedy to another, subject to the restriction
“the rules should recognise that local authorities are, at any time, empowered to authorise the taking control of goods once a liability order has been issued.”
REVENUES ROUNDUP
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Alistair Townsend dusts down the role of the Law of Property Act receiver, and wonders whether an opportunity has been missed
Alistair Townsend FIRRV, MCMI is Revenues
and Benefits Service Delivery Manager with
Mouchel Business Services
experience, LPA receiverships only occur where
the relationship between the lender/mortgagee
and the owner has irretrievably broken down,
and unsurprisingly this is because the owner
has failed to keep up his mortgage payments.
These owners are often professional landlords,
whose only income was rent from their
premises, and the LPA receivership has taken
their only source of income. Therefore, owners
who do fit into this category are not generally
in a position to pay the council tax. Despite
that, billing authorities are under a duty to
attempt to collect it, and they use considerable
resources doing so.
It seems that the technical reforms are
a missed opportunity to deal with this
issue. The change to Section 6 could have
placed the duty further than only mortgagees
in possession, and could have included
mortgagees who have instructed LPA receivers.
Alternatively, the exemptions could have been
extended to take account of this anomaly.
It also seems odd that, whilst I know of
many cases where LPA receiverships cause
these problems, I can’t think of more than a
couple of times in my career where the ‘granny
annexe’ anomaly has occurred, but this made it
into the reforms.
I assume that the decision to apply for
repossession or to instruct a LPA receiver is a
judgement based, among other things, on the
most financially effective option to the lender/
mortgagee. I hope that if the technical reforms
do result in the removal of Class L exemption,
this doesn’t simply tip the balance further in
favour of LPA receiverships – not least because
this will mean that the technical reforms, which
are intended to support the lost council tax
benefit subsidy grant, will simply not stack up,
but also because already stretched resources
will be used.
LPA receivership problems on the rise
LPA receivers are being appointed by both
mortgagees and administrative receivers to
protect their interests more quickly, and to
obtain the benefit of any rent that is payable.
In these cases, the LPA receiver independently
becomes responsible for the property, and
is then empowered to act as if he were the
owner of it, collecting rent and marketing it
as he sees fit. However, the LPA receiver has
a duty to act in the interests of the lender
who appointed him, and only residually in the
interests of the owner of the property.
In terms of council tax, if a tenant still
resides at the property, the resident is
obviously liable. In cases where the property
is unoccupied or the owner is liable by
prescription, such as houses in multiple
occupation, it becomes more complex. If the
property has been repossessed, the property is
currently exempt (Class L), so liability is largely
irrelevant. However, the current technical
reforms, which (at the time of writing) plan to
remove the exemption, have necessitated a
change to Section 6 of the Local Government Finance Act 1992 (Hierarchy of Liability) to make mortgagees in possession liable.
This is included at Clause 12 of the Local Government Finance Bill.
If the lender/mortgagee appoints a LPA
receiver over the property instead, the lender/
mortgagee is not in possession, and the
receiver is purely acting as agent. On this basis,
neither the lender/mortgagee nor the receiver
becomes liable, and the owner remains liable
without exemption.
Since the owner no longer has any control
over, or income from, the property, this
liability seems incongruous. This is even more
apparent in the cases of houses in multiple
occupation, where the rent from each tenant
often includes an element to cover the council
tax. The LPA receiver receives this amount
included in the rent, but it does not get passed
on to the owner, who remains liable to pay the
council tax. Further, it is also impractical. In my
Your Editor informed me that he is awash with
articles about the changes to welfare reform,
local council tax support schemes and business
rates retention, and suggested that it would
be helpful if my article covered other issues!
As with most of us, these areas are pretty
much overrunning my working existence at the
moment, so applying myself to ‘other issues’
has been somewhat challenging. However, with
the aim of keeping the Editor happy, I thought
that rather than writing about something that is
changing, I would write about something that
isn’t, but many argue should be.
In recent years, billing authorities have seen
an increasing number of Law of Property Act Receivers (LPA receivers) being
appointed. In the past, with house prices
continuing to increase, repossession was the
most common solution for lenders when
mortgages fell into arrears, but since equity in
many properties has become so limited, the
over-expansion by some landlords and the
difficulty of obtaining possession orders, LPA
receiverships are becoming more common.
“ However, the LPA receiver has a duty to act in the interests of the lender who appointed him, and only residually in the interests of the owner of the property.”
STUDENT FOCUS
The more things change, the more they stay the same, muses Bill Lovell
IRRV Honorary Member Bill Lovell is a
former examiner and member of the
Institute’s Examinations and Assessment
Board. He is a freelance local government
consultant and trainer
taking place, or proposed, in relation to
council tax and non-domestic rates, and that
these changes will be the latest in a series of
developments in local taxation in recent years.
There are challenges here for the Institute in
relation to virtually all the subjects studied.
The syllabus for each examination subject
must be kept up to date, and the IRRV must
ensure that study material reflects the changes
as they happen.
At times it may seem that the pace of
change is accelerating. Current students may
feel this to be true as they identify new rules
to learn, but in reality there has hardly been a
year in recent times when the Institute’s areas
of operation have remained unaltered. In many
ways, the students of ten years ago would
feel they faced just as much a challenge as do
those of you studying today. The fundamental
truth is that “plus ça change, plus c’est la
même chose” ...or to put it another way “same
old, same old! ”
Same old, same old!property has become an increasingly popular
means of investment at a time when interest
rates are low and commerce appears to carry
greater risk.
On the welfare front, the economic climate
creates serious difficulties for the level of
welfare benefits which must be affordable
within the tax system. With fewer people in
work, this is an issue that has to be faced by
whichever politicians are in power, but it is
for others to debate whether it is a help or a
hindrance that the present government came
to power with predetermined views on the
replacement of welfare benefits with Universal
Credit. The fact remains that the need to
support the poor, however you might define
them, and the means of funding that support,
has been a key feature of local administration
for centuries.
As administrators, we must implement the
solutions proposed by the government of
the day, and it follows that students must be
constantly aware of the developments
that are taking place, and must expect to
be examined or assessed by reference
to their knowledge of change. It is
not for us in the workplace to evaluate
the justification for the changes, but we
do have to consider how administration
will be affected, and how the impact on
customers will affect the assessment
process, perhaps in ways not foreseen
by the politicians. When we come to
study change of this nature, we do have
to go beyond learning by rote of new
rules and regulations, to look at the
effect on practice and procedures as
well as the changes in law.
Changes of a fundamental nature
such as those in the benefits field
cause difficulties for the Institute as well
as for its members and students, but
change is happening on a wide front.
Anyone studying local taxation law
will be aware of technical developments
Students of history don’t have to be too
concerned about keeping up to date with the
latest developments in their subject. Once
you’ve learnt the facts of the past, they tend
not to change so that, for example, if you
can remember the little rhyme “Divorced,
beheaded, died. Divorced, beheaded,
survived”, you’ll always know what happened
to the six wives of Henry VIII. When you come
to take a history exam, you won’t find that an
extra wife has been slotted in, or that judicial
separation has replaced the execution of an
unwanted partner.
Unfortunately, it ’s not that simple when it
comes to studying local taxation, revenues, welfare benefits and valuation. That’s not
to say that history is an easy subject. It relies
heavily on the gathering of evidence from the
most reliable sources available, interpretation
and assessment – and it frequently provides
a perspective on the problems of the present.
Historians might argue over the reliability of
the evidence on which they are working, but
they can rely on one fundamental truth, which
is that the facts themselves do not change,
only the interpretation.
When we come to look at the Institute’s
academic studies, change is a constant factor. Things do not stay the same in our
world, and consequently examiners and
assessors expect students to keep up to
date with contemporary developments in
the subjects. Perhaps valuation is the most
stable area of study for IRRV members, as the
principles of valuation are well established,
but issues continue to arise, such as the
distinction between ‘worth’ and ’value’,
and the challenges to valuers created as
“ Things do not stay the same in our world, and consequently examiners and assessors expect students to keep up to date with contemporary developments in the subjects.”
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THIRD SECTOR VIEW
Credit unions are tailor made for a role in the Universal Credit process, states Colin Holden
Colin C Holden IRRV (Hons) is Manager of
East Sussex Credit Union. Contact him on
Mr. Claimant? Well, first of all, the landlord
and credit union will need to work together
to persuade him to become a credit union
member. As far as I am aware, landlords
cannot force tenants to join the credit union,
but they could provide an incentive, such as
a discount. This needs to be done before the
expected start of UC. Both landlords and the
credit union will be anxious to get Mr. Claimant
to start saving as soon as possible to build up
a cushion against the first month in arrears
payments, and to start educating Mr. Claimant
about budgeting and money management
advice. In the build up to UC, Mr. Claimant will
also need to sign a mandate allowing the credit
union to pay the landlord direct, and the credit
union will need to agree with the landlord what
the transaction fee should be paid (the DWP
have already suggested a £5 fee).
Once UC begins, the credit union and other
advice teams could be available to help him
budget during that crucial first period until he
receives his first payment, and the first rent
payment will be made to the landlord. Any
residual UC can then be accessed through
mechanisms such as a prepaid card. Any
council tax payment and other direct
payments that have been agreed could also
be made. This is a golden opportunity for
joint working to prevent tenants and taxpayers
falling into the hands of the high cost payday loan companies and loan sharks – one which
should not be overlooked.
So my past has come back to bite me after
all, and I hope that both the government,
housing providers, and local government will
pick up the gauntlet and make this work for
everyone, but especially those claimants that
need the most help, not with understanding
the new rules, but with the change in culture it
will entail as well.
Credit unions are the logical alternative
huge numbers of branches, and I suspect they
have not thought through the level of customer
interaction they are likely to have with UC
claimants. Credit unions are the logical and
viable alternative.
Credit unions have the advantage of being
local, and can also provide complementary
free or low cost ‘add on’ services, such
as budgeting advice and guidance either by
themselves or in partnership with other local
organisations. For many claimants, this is not
just a simple change of payment method, but
rather a change of culture. Whereas in the past
the rent (and in some cases the council tax)
was paid and they did not have to worry about
it, they will have to budget for those payments
post-UC. Also, and more importantly, they are
moving from weekly or fortnightly payments to
monthly payments, with the first UC payment
being paid in arrears. For claimants who have
been used to managing their money on a
weekly basis, these changes will create major
stress, and issues for which they will need help
and support.
Your local credit union is ideally placed
to help with this culture change. It can offer
budgeting accounts and advice to its members,
and partnerships with other agencies and local
councils to help support them through this
culture change.
So how might this service look for
When I left local government I thought I would
never be involved in the world of housing
benefit and council tax again. However, these
things have a habit of coming back to bite
you, and so it is with me! As a humble Credit Union Manager, I am always on the lookout
for additional income for my organisation,
particularly in these days of reducing grant
income for the whole third sector, and so
then came along Universal Credit (UC), with
an associated income opportunity for credit
unions, whilst also helping the financially fragile
and excluded.
One particular aspect of UC has energised
both landlords and credit unions across the
country, and that is the point that the housing
element is to be paid within the single
UC payment.
The main concern here is that social and
other landlords will no longer receive direct payments, and the subsequent operating
costs to collect and recover the rent will rise
exponentially. This could also be the case
for local authorities in collecting the residual
council tax, assuming they can afford to pay
CTB to any non-pensioners! To ameliorate
this risk, one option could be for landlords to
have an agreement with their tenant and their
local credit union so that the UC is paid into
the tenants’ credit union account, with the
credit union paying the landlord. This concept
is not new – it is already used by several credit
unions for local housing allowance for private
landlords, but what will be new is how this
concept can be adapted for UC.
The claimant will need a bank account to receive UC, and the DWP has recently
announced a deal with Citibank to provide
accounts to those who currently do not
have them, but they will just be providing a
banking service, which may not be enough for
claimants unused to banks and banking. No
doubt they will want to sell other expensive
services, including setting up a direct debit for
landlords. In addition, Citibank does not have
“ It can offer budgeting accounts and advice to its members, and partnerships with other agencies and local councils to help support them through this culture change.”
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VALUATION MATTERS
More comment on the Makro case is available
in the latest (September 2012) edition of the
IRRV’s Valuer magazine. If you don’t already
subscribe to Valuer, go to www.irrv.net , and
click on ‘publications’, then ‘valuation’.
Chester and West Cheshire Council v Public Sectors Charitable Trust
A second case follows the same theme.
In this case, a lease was given to a charity
who paid a very minimal rent and used
the property solely to house wireless and
bluetooth equipment, which was placed
around the premises and visited now and
again for maintenance. The court found
that the maintenance of the equipment
was enough to amount to occupation
of the whole premises, as although the
occupation was slight, it was of value and
benefit to the charity. Occupation in such
a case is a matter of fact and law.
These cases appear to provide support
to landlords seeking to reduce their liability
for empty rates, and we can expect to see
other landlords of empty units utilising
similar strategies.
In the longer term, the government
finally appears to be responding to calls
from property investors to address the
wider issues regarding empty rates. In
May 2012 a working group (headed up
by Conservative MP Julian Sturdy)
was set up to explore changes to this
legislation. We shall watch this space
with interest...
This report is brought to you by Penningtons Solicitors LLP. Go to www.penningtons.co.uk
Empty rates - further reform is neededbusiness rates. This was based on
a rule that allows a further period
of three or six months relief,
following the property being
occupied continuously for six weeks.
Unsurprisingly, the council did not
agree – they argued that occupation
by virtue of the pallets was not
sufficient because it was de minimis
given the size of the unit.
Makro relied upon case law decided
in 2007. In these cases, councils had
routinely been successful in arguing
that even de minimis occupation was
sufficient, and triggered a requirement
for business rates to be paid.
The High Court accepted the
landlord’s reasoning and found that
Makro was entitled to a further six
months exemption from business
rates. This equated to a saving for the
six month period of £117,000. It would
appear the court felt bound to come
to this conclusion based on precedent,
and it went on to say, “It has often
been emphasised that the court is
not a court of morals but a court of
law. If the outcome of this case is
seen as unacceptable, it is for the
legislature to determine that further
reform is needed.”
Makro Properties Limited and another v Nuneaton and Bedworth Borough Council
The High Court has supported a landlord
using a scheme to avoid the payment of
business rates on vacant commercial premises.
In the current economic market, landlords
are struggling against an increasing number
of vacant units. This pressure increased on
1st April 2008, when a change in the law on
business rates was brought in by the Rating (Empty Property) Act 2007 and the Non–Domestic Rating (Unoccupied Property) (England) Regulations 2008.
Landlords are required to pay business
rates on empty properties after they are
vacant for three months, or six months on
industrial units.
In this recent case a tenant, Makro Self Service Wholesalers Limited (a group
company of Makro Properties Limited [Makro])
ceased to occupy a warehouse property and
surrendered its lease in June 2009. Some
six months later, it then stored 16 pallets of
documents in the property, occupying just
0.2% of the floor area from November
2009 to January 2010, a period of around
two months.
Makro argued that this occupation entitled
them to a further six month exemption from
“ Unsurprisingly, the council did not agree – they argued that occupation by virtue of the pallets was not sufficient because it was de minimis given the size of the unit.”
Successfor landlords seekingto avoidempty rates.Hannah DareofPenningtonsprovidesasummaryoftwokeyrecentcasesonthiscontentiousissue
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BENEFITS BULLETIN
Universal Credit rumbles on, says Maureen Neave, but all is not well
Maureen Neave MBA IRRV (Tech) is
Benefits Manager with Vale of Glamorgan
Council and an IRRV Council member
will affect the vulnerable. And there will be
no direct payments to landlords if someone
is eight weeks in arrears, where there will be
greater risk of eviction. Claimants will be
paid direct by monthly payments in arrears,
leaving them with large sums of money to
manage, having to wait a longer period for
their payment (which will only be paid to one
person in the household), with a major risk
of debt occurring and rent arrears building up.
However, Lord Freud confirmed that DWP
will be developing a transitional payment system to help people through the waiting
period, but it will only be in a form of a loan,
which will have to be paid back.
There will be no cash losses directly as a
result of moving onto UC, as there will be
transitional protection where a claimant’s
circumstances have remained the same, but
transition will be eroded over time. There will
not be a provision to have an elective break in
claim for claimants to move onto UC, even if
they will be better off. There does not seem
to be anything for backdating – if this is the
case, DWP are very short sighted, as this will
again affect the vulnerable. Also, the number of
eligible service charges has been significantly
reduced, meaning extra costs to tenants, which
will have huge implications for council housing
and housing association rents. I bet the HB
regulations will be amended to take account of
the reduction of service charges before UC is
introduced for local authorities to take the flak
again... which seems to be the norm of late!
The warninglights are red
Whether UC is going to be delayed or not,
DWP are steaming ahead with their plans.
They have large volumes of people working on
UC – I dread to think how much this must be
costing the taxpayer. But unfortunately, within
their plans they seem to be forgetting the customer. I personally think they are too far
removed from the coal face and have lost their
focus, as they do not realise what chaos they
will cause with their lack of understanding of
the customer and the complicated lives the
customer leads. I don’t think they realise how
important it is for our customers to have home
security and stability, and how essential it is
to maintain this under any new system, as it is
a foundation to moving into and maintaining
employment. You cannot tackle job creation
through a centralised system run by a back
office and no face to face contact.
After reading the draft UC regulations, there
appears to be less of them, and they do
not look as complicated as they are at the
moment, making it clear that DWP are moving
away from the current legislative approach.
However, a number of claimants are going to
be worse off as a result of the differences in
the two systems. There will be a reduction of 26 weeks for temporary absence, which
Universal Credit (UC) draft regulations
published in June are expected to go before
parliament in the autumn, indicating that
UC seems as if it is still on track, to be
implemented for out of work claimants
in October 2013. But there are different
messages coming through from different
sources – it has been reported that ministers
have stated that it will not be ready for national
roll-out until mid 2014, and it was stated in
a DWP newsletter that “by mid 2014 all new
benefit claims will be treated as UC”.
The DWP insists it is on time and will be
implemented from October 2013, and has
added that it was a “careless choice of words”
in the newsletter. However, there are doubts
that HMRC’s real time information system
will be up and running in time for the April
2013 pilot. The UC project is already on the
Treasury’s list of ‘at risk’ programmes, and
shadow Works and Pensions Secretary Liam Byrne MP has been quoted as saying “the
warning lights are red”. Also, senior sources
in government and the opposition suggest
that UC is now over budget, running late and
actually costing more money than first thought.
Fresh questions over the cost, timetable and
viability of UC emerged on 25 June as David Cameron unveiled 17 further reforms that
go far wider than expected, and are aimed at
further savings in the welfare budget. Senior
sources in the government and the opposition
suggested that UC was now over budget
and running late, raising questions over the
implementation of the wider reforms. Iain Duncan Smith denied the claims in the
Commons, but government sources said the
Treasury was increasingly alarmed at the slow
progress of UC. The reality is that welfare
spending is going up under this government,
with unemployment as one of the biggest
factors, but the priority with this government
appears to be to make further cuts to the
benefits system, instead of helping to get
people into work.
“ You cannot tackle job creation through a centralised system run by a back office and no face to face contact.”
The LSCT Resource Centre is a database that has been developed by the Institute of Revenues Rating and Valuation and is designed to assist local government in setting up their local schemes. As an evolving product, it holds numerous resources to help the practitioner through this very difficult period. It also includes a message board and a technical enquiry service together with a register of local schemes.
The database will be updated weekly and will include the latest information on the progress of the new legislation. The system will be accessed through a simple navigation panel and will enable users to download documents and templates. The navigation panel includes the following: Legislation, Circulars, Notice Board, Presentations, Minutes of CLG Meetings, Benefit Magazine, Vulnerable Groups, Register of Local Schemes, Library, Technical Queries, Impact Assessments, Appeals Process, Local Consultation.
The product is now live and you can access the homepage on: http://lsctirrv.co.uk/index.php
The initial joining fee will be £750.00 (plus VAT) with Benefits Advisory Service subscribers only being charged £250.00 (plus VAT). This subscription will cover the period up to the 31st March 2013 and thereafter will be charged at an annual rate.
To apply or for more information, please follow this link: http://lsctirrv.co.uk/about/
The government is abolishing the national scheme for Council Tax Benefit. In its place local authorities are required to develop a local scheme. This site is the “one stop shop” for the reform.
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and also for ratepayers, who have difficulty
dealing with the uncertainty such a situation
provides. Other uncertainties relate to possible
revised plant and machinery regulations,
and potential changes to the appeal system
and Valuation Appeal Committee regulations.
At this year’s IRRV Scottish Conference,
there are a larger number of valuation-related
sessions taking place than in previous years,
emphasising the importance of these issues,
with a key session being on material change
and the relevance of recent Valuation Appeal
Committee opinions, a session to be led by
Steven Stuart QC of Terra Firma Chambers.
In addition, valuation professionals will have
the opportunity to listen and contribute to
sessions on ‘Empty Rate – experiences from
London’ and ‘Property Tax Trends around
the World’ – both being delivered by Paul Sanderson in his capacity as President of the International Property Tax Institute.
‘Plant and Machinery – changes and the issues’,
will be delivered by IRRV President Roger Messenger, and there will be discussion on
the Scottish Valuation Appeal Committee
consultation, led by Alastair Beattie, Chair of the Highland and Western Isles Valuation Appeal Committee.
Away from valuation matters, it is clear
that the proposed changes to the benefits
system through the welfare reform agenda
have the potential to significantly impact on
local authorities who currently administer
housing benefit and council tax benefit (HB/
CTB). The need for detail where changes
are imminent – the proposed Council Tax Reduction Scheme to replace CTB across
Scotland is scheduled to be in place from April
2013, and the first phase of Universal Credit implementation is scheduled for October
2013 – highlight the reasons why the IRRV
Scottish Conference this year has significant
emphasis on progress with welfare reform,
collection after welfare reform, and delivering
localised council tax support in the Universal
In the run up to the IRRV Scottish Conference and Exhibition, taking place at the Crieff
Hydro Hotel on 5th and 6th September, it is
worth giving consideration to a number of
the key issues facing practitioners across the
valuation, revenues and benefits fields – issues
that will be debated in depth at the IRRV
Scottish Conference this year.
On the valuation side, one of the biggest
issues is the effect of material change of circumstances (MCC). In most parts of the
country, markets have been in a state of flux,
and generally falling in different locations
by different amounts since 2008. The last
revaluation tone date was 1st April 2008, and
the coming into force date 1st April 2010.
It can be argued that falling rental markets
constitute an MCC, and consequently the
levels of value for (mainly) retail properties
in certain locations are too high. Valuation Appeal Committees in Fife (Mercat) and
Tayside (Overgate) have heard appeals
on the basis of interpretation of the MCC
regulations. Unsurprisingly, the decisions of
these committees were referred to the Lands
Valuation Appeal Court judges in May of this
year, and at the time of this article decisions
are awaited.
Under the appeal regulations, an appeal
against value must be submitted within the
year in which the event takes place. In other
words, an appeal submitted by 31st March
2012 may have an effective date back to 1st
April 2011, whereas one submitted on 1st
April 2012 can only be effective from that
date. As a result of this situation, and because
rental levels have continued to fall in certain
locations, many appeals have been lodged in
late March 2011 and 2012. In fact, in many
cases, almost as many appeals have been
lodged in these years as in the revaluation
year 2010. This is an unprecedented situation,
exacerbated by the fact that there is a statutory
timetable within which appeals must be dealt.
This is a big concern for all rating professionals,
The LSCT Resource Centre is a database that has been developed by the Institute of Revenues Rating and Valuation and is designed to assist local government in setting up their local schemes. As an evolving product, it holds numerous resources to help the practitioner through this very difficult period. It also includes a message board and a technical enquiry service together with a register of local schemes.
The database will be updated weekly and will include the latest information on the progress of the new legislation. The system will be accessed through a simple navigation panel and will enable users to download documents and templates. The navigation panel includes the following: Legislation, Circulars, Notice Board, Presentations, Minutes of CLG Meetings, Benefit Magazine, Vulnerable Groups, Register of Local Schemes, Library, Technical Queries, Impact Assessments, Appeals Process, Local Consultation.
The product is now live and you can access the homepage on: http://lsctirrv.co.uk/index.php
The initial joining fee will be £750.00 (plus VAT) with Benefits Advisory Service subscribers only being charged £250.00 (plus VAT). This subscription will cover the period up to the 31st March 2013 and thereafter will be charged at an annual rate.
To apply or for more information, please follow this link: http://lsctirrv.co.uk/about/
The government is abolishing the national scheme for Council Tax Benefit. In its place local authorities are required to develop a local scheme. This site is the “one stop shop” for the reform.
“This is an unprecedented situation, exacerbated by the fact that there is a statutory timetable within which appeals must be dealt.”
On the eve of the IRRV’s Scottish Conference, Ian Ballance has been looking at the future shape of Scotland’s public services
Getting involved in the debate
Cover story
Credit environment. In delivering these
sessions, there are key speakers from within
the Institute, the Department for Work and Pensions, Scottish Government and from
the RSL sector. Of course, the existing system of benefits
– and indeed the forthcoming Universal
Credit – does not exist in a vacuum. Benefits
and revenues do not run independently, but
interact with and influence each other. The
various changes taking place over the next
12 to 18 months raise several issues within
authorities. It is clear that some of these
changes, for example the abolition of CTB,
moves to direct payments of rent support
and potentially lower benefit levels for some
customers have the potential for impact on
council tax and rent collection levels.
The degree of apprehension within both local
authorities and amongst benefit customers
about the future is not being helped by the
lack of availability of clear information on key
aspects of the reforms, and the Institute as the
key professional body for benefits practitioners
seeks to engage fully in this debate. Key
Institute events like the Scottish Conference
are an important way of allowing practitioners
to get involved in the debate and gaining the
most up to date detail from speakers.
On the revenues side, the aim to bring long
term empty property into use is a laudable
one. It has been estimated there are some
34,000 of these properties in Scotland. The
‘carrot’ of bringing these houses back into use
in part by using the ‘stick’ of double council
tax liability is a key issue for debate. I wonder
how the administration of this proposal will
work – for example the issue of ‘long term empty ’ versus ‘second home? ’ The Scottish
Conference will have a session on surcharging
council tax long term empty properties, with
input from the Scottish Government. Other
key revenues topics include a focus on the
possibility of the introduction of a ‘Water Direct ’ scheme in Scotland.
The Scottish Conference this year seeks
to air many of these issues and get to the
most up to date information. I am pleased
that the Scottish Government’s Minister for Local Government and Planning, Derek Mackay MSP, has agreed to give
the Ministerial Address, and in addition, an
excellent body of speakers, academics, local
authority professionals, legal experts, senior
civil servants and other government speakers
are participating in the sessions. I know that
current issues will be debated in depth, and
also hope that many of the current concerns
can be addressed. I have no doubt that all
attending will go away with more information
than when they started. I am looking forward
to a busy two days.
Ian Ballance is a former President of the IRRV Scottish Association. He was formerly Depute Assessor for Central Scotland.
“Key Institute events like the Scottish Conference are an important way of allowing practitioners to get involved in the debate and gaining the most up to date detail from speakers.”
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Cover story
recession with more dips than Alton Towers to
something more like a new way of life.
There are few signs of a general recovery, and
the checks and balances of a globalised economy
make any sort of rapid and sudden growth
unlikely. Whether you believe in austerity or in
stimulated growth, or even in the widely adopted
ostrich theory, there is no neat solution.
But whatever mists lie across the future
economic landscape, there is still an expectation
that government, nationally and locally, can
collect revenues and spend wisely. If anything,
expectations are even higher. When incomes are
squeezed, individually and corporately, those who
pay proportionately more their from pay packet
or profit expect the same services as before – at
a time when all services are under the knife.
The services provided by local government are
by definition more visible, and therefore more
exposed to comment. The comment may be
positive as well as negative, but we all know that
there is a disproportionate balance – people are
strangely less motivated to rush to the computer
to tell you about what a fine job you’re doing.
The challenges in raising revenue in such an
environment are immense, and the impending
introduction of Universal Credit will only
exacerbate this. But, as all of us who are involved
in the processes of collecting revenues know,
it’s not as if we are going to get much sympathy.
When people have no money, it’s difficult to
collect, and when people have less money than
they formerly had, they are not exactly cheerful
about parting with it.
And yet without revenues, there is none of
the fabric that makes society fair, safe or equitable. Which is why the professionals
who collect revenues have to be not just more
efficient, but also more imaginative in how they
go about their business.
In the current environment our clients are
looking for value for money. That doesn’t
mean settling for the cheapest service offered.
Cost matters, but it is important to invest in
expertise, infrastructure, performance driven
Scott + Co have been associated with the IRRV
Scottish Conference for many years. Our support
was previously confined to the more convivial
part of the two days – the conference dinner.
This wasn’t just because we felt that an excellent
meal and fine wines were reasonable reward for
two hard days of discussion. It was because we
thought that some of the best debate probably
took place over good food and drink! This year, for the first time, we’re going the
whole distance in sponsorship terms and
are delighted to be the overall conference sponsors. We do so at a time when members
of the Scottish IRRV face challenges on an
unprecedented scale. We have gone from a
solutions and systems to deliver success and
continuous improvement.
To remain successful in difficult times we must
all remain committed, and constantly challenge
the norm and seek out new innovative ways to
recover revenue and engage with the customer.
Communication with the customer is vital, and
at Scott & Co we continue to invest in multi-channel communication facilities to ensure
that we maximise contact with the customer. We
have recently opened our third customer contact
centre in Scotland, utilising the latest telephony
and multi-media technology, including customer
driven communication services, encrypted
mobile interfaces, outbound IVR and integrated
voice recognition facilities. We are of course
aware that not everyone wants to speak to us,
so extensive field resources are necessary to
deliver the service on the doorstep if revenue
recovery rates are to be maximised. This is an
area where the introduction of mobile technology
has revolutionised our service, with ‘real time’
data fed to the door and the instant delivery of
dashboard based workflow and service data to
office based performance managers.
It’s not, however, just about the application
of technology, investment and efficiency.
Imagination is as crucial for revenue
professionals as it is for novelists. Not just
being one step ahead of relentlessly innovative
evasion strategies, but seeking new approaches
to revenue collection that are fair, reasonable and
acceptable to the citizens and corporations who
have to pay.
Well, perhaps acceptable is going a bit
far – none of us are likely to get bouquets of
flowers from taxpayers in the near future! But
the identification of new ways to collect and to
enforce is crucial to maintaining the services and
structures that all citizens want.
David McLaughlin is Managing Partner with Scott and Company, overall sponsor of the 2012 IRRV Scottish Conference
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Collecting the future – David McLaughlin is on hand to take the revenue collection industry in Scotland forward at pace
“When people have no money, it’s difficult to collect, and when
people have less money than they formerly had, they are not exactly
cheerful about parting with it.”
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Performance management
management of performance. This message is
particularly relevant given that the challenge
facing all public sector organisations is to do
more with less.
In order to improve performance, there are
three key areas that need to be considered:
1. Leading and embedding a culture of performance Management – for success, the whole
organisation, led by its top team, must
embrace a culture where performance
management is seen as integral to achieving
the desired outcomes, but performance
must not be just a centrally driven exercise
or seen as the sole preserve of finance or
some other corporate function
2. Fit for purpose ‘delivery structures’Maximum effectiveness requires that policy
be implemented within ‘fit for purpose’
delivery structures
3. Culture of performance managementEnabling a culture of performance
management will have training implications
– appropriate training and development is
an important success factor.
The lack of robust performance
regimes in local government was
a frequent observation of the
Audit Commission. That said,
from my experience, having
worked in local government and
in the private sector, the same is
also true of many private sector
organisations, but market
mechanisms are far more likely
to motivate improvement or
weed out under performers in
the private sector.
In the public sector, competition
for investment and clients does
not exist. The sanctions for poor
performance are at best unclear,
and organisational failure cannot
generally be allowed.
Managing performance is crucial in
any organisation, and particularly in local
government, because public expectations are
increasing as to how taxpayers’ money is spent
and whether value for money in all areas of
government is achieved consistently. More
must be delivered for less, and this requires
smarter, more cost effective working, and
focus on what really matters to politicians
and, more importantly, to their customers,
whether they are council taxpayers, ratepayers
or benefit claimants. This is never more so
than in the current climate, with wide ranging
cuts in subsidy and the need to re-align many
services, including the development of local
support schemes for council tax.
So what do I mean by performance management? In general terms, performance
management is concerned with effective
management, in order to achieve intended
outcomes. In the context of revenues and
benefits, it can be easily defined as the
efficient delivery of services, through a
defined strategy and good governance, clear
values, clear processes and controls to direct
people and money to deliver the objectives of
the strategy in a cost effective way, with due
regard to risks and opportunities.
To manage performance and efficiency,
it must be measured. To achieve ‘cost
effectiveness’, one must estimate the
necessary quality and quantity of the service
needed to achieve the desired outcomes
within a defined time period – and also
estimate the resources required to deliver it.
Successful organisations, public or private
sector, strive for efficiency, and a culture
of sustainable continuous improvement is
endemic in all of the very best performing
organisations – both public and private.
All of the external assessments made of
local government, health, the police, etc.,
have identified that there are significant
opportunities for organisational improvement
in the public sector, including better
Scope of performance management Performance and financial management data
are often poor and unreliable when produced
by some of the core systems – particularly in
relation to housing and council tax benefits
– largely due to their complexity. It has to be
said that many revenue and benefits officers
and their suppliers are acutely aware of the
issues, and are tackling the reliability of data.
The primary objective of good performance
management is for it to be integral to everyday
operations building, and sustaining a culture of
high performance and achievement. It is about
ways of working, how decisions are made, and
how actions are implemented and tracked. It
needs to combine the ‘stick ’ of accountability
and transparency, with the ‘carrot ’ of
incentives and rewards. It involves:
• setting strategy, including key objectives
and performance targets
• taking decisions to organise and apply
resources so as to be able to deliver
effectively against objectives and targets
• monitoring performance dynamically
against those objectives and targets; and
• working with people to improve
performance when and where needed.
Managing performance has never been more critical as an asset for any organisation, says Mark Poole
When more must be delivered for less
“ Successful organisations, public or private sector, strive for efficiency, and a culture of sustainable continuous improvement is endemic in all of the very best performing organisations – both public and private.”
Mark Poole IRRV (Hons) is Operations
Director with RB Performance Ltd. If you
have any questions or comments, Mark may
be contacted on Tel: 07862 277803 or at
Apply now – visit: www.irrv.net/courses; call: 020 7691 8996; email: [email protected]
The IRRV Certificate Qualification is for Local Revenues and Benefits staff up to middle management level. It may be taken as a freestanding qualification or as a stepping stone to study for the new IRRV Professional Diploma. The Certificate is at Level 3(of the current 8-level framework) in England and Wales, and Level 5 (of the current 12-level framework) in Scotland.
The IRRV Professional Diploma is for those wishing to progress to senior positions and successful candidates will be awarded with the IRRV Diploma Qualification. The Diploma is at Level 5 (of the current 8-level framework) in England and Wales, and Level 9 (of the current 12-level framework) in Scotland.
These courses run over three terms, usually one day a week starting in October 2012 and continuing until May 2013. Courses will be held at the IRRV offices
(a short walk from Chancery Lane and Holborn tube stations).
IRRV Level 3 Certificate IRRV Professional Diploma
The course:• Promotes best administrative
practices;• Covers key legislation;• Provides expert tuition;• Includes face-to-face tuition
in Central London;• Includes study material as
part of course fee.
IRRV LONDON COURSES 2012/13 Application Deadline: 30th August 2012
get qualified • courses available now • by day release • October 2012 • the way forward
BOOK NOW
Application Deadline: 30th September 2012
Performance management informationNo organisation can sustain high performance
without good information – about
current performance, about future variables
and trends, about its people and about
its customers. In the most successful
organisations, the leadership has defined their
information needs and established systems,
to provide that information in the form
required and on a timely basis.
Concise and clear presentation of
information for all stakeholders, linked to the
key organisational activities and objectives, is
essential if performance management is going
to be effective.
PMQA systemTo assist local authorities, our organisation
developed a Performance Management and Quality Assurance System (PMQA)
that enables local authorities to quickly and
easily monitor the work and the performance
of all staff, both in terms of output and
quality levels. The PMQA system allows the
authorities to monitor performance against
targets continually, and in terms of quality
it allows for different levels of checks to be
selected. The information produced can be
viewed within the system at any time, and
analysed against periods of the user’s choice,
for instance weekly, monthly or quarterly. This
allows the authority to analyse trends and
monitor performance, to ensure that it is on
target and that staff are continually improving.
But, of course, monitoring performance
is one thing, but what do you do with the
information obtained about individual staff
performance? Well, we have developed
an ‘appraisal module’ for the PMQA that
allows managers to schedule appraisals for all
staff, and team leaders can quickly schedule
appraisals for all their team members,
using the performance information about
individuals identified through the PMQA.
When the appraisal is created, an email is sent
automatically to the user, and can be linked to
the authority’s standard appraisal document/
template and add this as an attachment.
The appraisal can optionally be based on
performance and/or quality checking results.
If selected, information regarding the user’s
performance and quality checking for the
last three months will be included with the
email. Once the schedule is completed, the
‘appraiser’ can record the results/actions from
the appraisal meeting, and a new appraisal is
scheduled automatically.
Basically, performance measurement is
about good management. Its only purpose is
to deliver a better quality service, but to do
that it must be embedded into the culture of
the organisation.
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Welfare reform
as and when basis.
The role of the Group is to inform the
planning, preparation and coordination
strategies for the migration of existing HB
customers to UC, and help inform the future
role of local authorities in the delivery of UC.
Darren Baker, who works as part of DWP’s
Local Authority Transition Team, reflects on the
role of the Transition Working Group one year
after its inception in August 2011.
“We knew the UC Programme would be
responsible for all aspects of UC development
and implementation, but we also knew
Housing Delivery Division was best placed to
work with local authorities to help and support
them with the transition to UC. We have a
long established understanding and working
relationship with local authorities, and our
aim is to help authorities maintain the
effective and efficient HB service they’ve
built up over many years, and ensure the
smooth transition to UC. By gathering and
using intelligence from local authorities the
Group is also able to test and challenge plans
for UC, for example, how best to implement
these huge changes from a local authority
operational perspective.”
So far the group has
contributed to the
development of a range
of strategies, including
the UC Face-to-Face Services Framework,
and operational expert
views on the early UC
migration planning.
Darren adds, “After the
first few meetings we also
quickly realised there was a
Ensuring the LAvoice is heard
To say the least, the introduction of Universal Credit (UC), including a housing credit in the
modified Pension Credit, to replace housing
benefit (HB), will have a massive impact on
local authorities.
Recognising the scale of these changes,
DWP’s Local Authority Transition Team has worked very closely with the
Local Authority Associations (LAAs) to
develop the most effective means of
consulting with and communicating
developments to local authorities.
As a result, in the summer of 2011, the
Local Authority Transition Working Group was formed as a sub group of the
DWP/LAA Steering Group. The group is
made up of representatives from the Steering
Group, the Devolved Administrations, Department for Communities and Local Government and local authority
representatives from England, Scotland and
Wales, along with members of the DWP Local
Authority Transition and UC Local Authority Liaison teams. Subject matter experts are
commissioned to report to the Group on an
Working with local authorities to implement Universal Credit – this month, Insight features the role of DWP’s Local Authority Transition Working Group
For any additional information, contact
Darren Baker on [email protected], or go to http://www.dwp.gov.uk/local-authority-staff/universal-credit-information/local-authority-transition-working/
need for a separate sub-group which could
consider the financial implications of UC on
authorities. It was therefore agreed with the
Steering Group to commission a sub-group of
the Transition Working Group to consider the
financial implications of the HB migration.”
The Finance and Commercial Group
was therefore set up in October 2011 and is
responsible for considering the financial and
commercial implications of the operational
changes required to migrate HB claimants
to UC and housing credit for pensioners.
The Group is however not responsible for
looking at the cost implications of the wider
Welfare Reform Bill. Membership includes
representatives of local authority Finance
Directors, and has provided local authority
expertise to inform the UC Business Change Impact Strategy, and the UC business case,
including local authority administration subsidy
and funding.
There is a similar sub-group, the Support and Exceptions Working Group, looking at
the specific support some claimants will need
to successfully manage their money under
UC. There is some way to go before we fully
understand how UC and housing credit for
pensioners will work, but the excellent work of
these groups is really helping to move things
along and ensure the important local authority
voice is heard.
“The role of the Group is to inform the planning, preparation and coordination strategies for the migration
of existing HB customers to UC, and help inform the future role of local authorities in the delivery of UC.”
Shared services“You can either wade through the 19,000 articles, papers and reports, or you can thank me for summarising the top things the academics are saying!”
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that need skilled and knowledgeable
leadership and management.
Each partner should create a group of
skilled and qualified in-house shared service
architects and practitioners. They should be
skilled in developing and sustaining the trust
between partners. They should understand the
legal issues that impact on shared services,
and they should also understand how to
develop shared service business cases too.
Elizabeth Lank writes, in her book
‘Collaborative Advantage: How Organisations
Win By Working Together’, “...because of our
collective failure to recognise the connected
nature of the inter-organisational world,
we have to date largely failed to educate
mangers and leaders sufficiently in the art of
making collaborative work effective.”
Through our Shared Service Architect’s programme, there are now almost 300
shared service practitioners working in over
150 councils in England and Wales. They
report that their training has accelerated their
impact on partnership activity.
Also, it is important your chosen officers
are released to work on shared services full
time. The more experienced they become
in collaborative activity, they will gain what
the academics call ‘collaborative know
how’, thereby delivering shared services
more quickly.
The key driver should be passion not moneyDeveloping a shared service is an opportunity
to start with almost a blank sheet of paper
and passionately build something new,
better and lower cost. Passionate people achieve extraordinary things. For
Test this out. Go to Google Scholar and
type in ‘shared services’. You will get 2,630
academic papers or references. Do the same
for ‘inter-organisational relations’ and you will
get over 19,400 – seven times more. Inter-
organisational relations is the academic study
of collaborations, alliances and mergers, and
in that you will find the wisdom of successful
shared service activity.
You can either wade through the 19,000
articles, papers and reports, or you can
thank me for summarising the top things the
academics are saying!
Newton’s first law of shared services I bet you’ve heard that myth that academics
only prove what we know already. Well, maybe
it ’s true for this particular issue.
The first law of shared services is that,
‘People do shared services with people they
like.’ If Leaders, or CEOs, don’t like each
other, or don’t trust each other, don’t waste
time on partnership working.
Cllr Gary Porter, Leader of South Holland District Council and Shared
Service Champion of the Local Government
Association wrote recently that, “Before
embarking on the shared service journey, the
elected members of each of the participating
councils need to have a frank and open
conversation, both within and between each
of the partners. They need to establish two
critical facts – do they trust each other and do
they have a shared vision for the future.”
Equip your organisation to be shared-service-ready Shared services can be multi-million
pound change management programmes
Dominic Wallace is Director of Learning and
Development at Shared Service Architecture
Ltd., and lectures on the national
Postgraduate Certificate in Shared Services.
Contact him on [email protected]
revenues and benefits, on the front line it
should passionately focus on the needs of
the resident. In the back office, it should
passionately focus on a better environment for
management and staff to work in.
Merging the existing ways in which
partners work, including their inefficiencies
and traditions, is a recipe for disaster. Lord Michael Bichard’s view is that, “We are not
going to get out of this recession with a few
efficiency savings or, as someone put it, a
haircut here and there for public services. We
are going to have to look at fundamentally
different ways of delivering services.”
This is an opportunity to make key decisions
on what to stop doing too. To quote Peter Drucker, “There is nothing so useless as
doing efficiently, that which should not be
done at all! ”
Listen to the academicsIn summary, the academics are telling you
that success in partnerships is rarely found in
the 200 pages of a business case. It ’s found
in resolving the issues around the people,
the power and the politics, before you write a
business case.
“ Huh! What do academics know about shared services?”, I hear you ask, says Dominic Wallace
The first law of shared services
AnnualConference& Performance AwardsTelford International Centre3rd – 5th October 2012Book on www.irrv.net
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Council tax support
tested benefits systems before. Effective sharing
of best practice and the provision of an effective
central ‘library’ of CTS materials is a timely step in
the right direction.
Scheme designCouncils planning to implement a local scheme
will have their plans well advanced by now, and
in order that meaningful consultation can be
completed before the autumn budget setting
round begins. As proposed schemes are
published, the IRRV’s Resource Centre will provide
a portal that enables an online library of published
schemes, which together with analysis of schemes
which can be completed, aims to provide the
only single point of access online library of
schemes available.
As the analysis of individual council preferences
proceeds over the autumn, it will be possible for
billing authorities to ‘fine tune’ local schemes
not only with reference to local evidence from
consultations, but also with reference to nationally
profiled benchmarking data.
Equality impact analysisFinal decision making will be completed by many
councils later in the autumn, and leading for most
to a final determination by full council in January.
It is difficult to envisage how decision making
can be completed without the support of an
effective Equality Impact Assessment (EIA).
The Resource Centre will supply a series of ‘off
the shelf’ general approaches to the completion of
an EIA, and will also signpost published EIAs from
other councils where possible.
Included also will be the two EIA’s which
the DCLG has completed in response to the
Department’s own responsibilities under the
Equalities Act 2010, and in broad terms the
later EIA of June 2012 feels on balance a more
comprehensive response, which is described by
the Department as an ‘updated’ impact analysis.
While this document won’t be appropriate for the
requirements of individual billing authorities, the
level of analysis introduced within the updated
A toolkit for thechallenges aheadWith only seven months to go before council tax support (CTS) ‘go live’, and less than five months
before local schemes must be adopted, the IRRV
is preparing a specially designed ‘Resource Centre’, providing a toolkit to help councils with
the challenges ahead. With a focus on the steps
which are likely over coming months, I shall chart
the progress of the toolkit, reminding readers of
the likely next steps as we head into the autumn.
The Institute of Fiscal Studies (IFS) and
Joseph Rowntree Foundation (JRF), in
publishing some of the first independent research
into CTS, have described the challenges ahead
as follows:
“The timetable for implementing new schemes
is very tight: following a lengthy delay by central
government before announcing details of the
policy, local authorities which have little or no
experience or expertise in designing means-tested
support schemes are being required to adopt
finalised schemes by the end of January 2013.”
While different approaches may apply for Scotland
and Wales, in England councils will either have
adopted local schemes by January 2013, or the
default scheme will apply, but will not deliver
the 10% cut imposed in funding the CTS. Like
it or not, localisation of council tax benefits is
being achieved at breakneck speed, and the
DCLG approach delegates to councils not only
the responsibility for the design of the CTS, but
also the 10% reduction in funding. As the JRF
and the IFS say, local authorities have not had
to complete the modelling and design of means
Simon Horsington IRRV (Hons) is a
consultant, and can be contacted at
and 07990 552929
assessment is an indication of how seriously the
impact analysis must be taken.
DCLG law and adviceThe DCLG has so far published a series of
draft regulations and guidance notes which are
intended to help councils in view of the fact that
much of the framework is still not yet law. As the
‘organic’ approach to the development of the law
and practice must continue – simply keeping up to
date is not straightforward. The Resource Centre
provides a single point of entry for regulations
and guidance, and allows users to access all the
appropriate documents.
Vulnerable peopleThe government has made it clear that councils
will be mindful of the need to protect vulnerable
people, but only intends to require that pensioners
receive protection, therefore delegating
responsibility for the identification of vulnerable
people to a local level. Not only must councils
consider who is vulnerable, and demonstrate
through means including the EIA that the
requirements of those vulnerable have been fully
considered within the decision making process, but
the effective systems for the operational completion
of that must also be designed and implemented.
In conclusion...I have said before that we now face some of the
most significant changes that have been seen in
thirty years. The proposals for the localisation of
benefit which will become operational by April 2013
are in the vanguard of that change programme, and
the Resource Centre will offer a centrally available
benchmarking resource which can help inform
effective local decision-making. More information
will be available shortly both through the IRRV’s
website and in the pages of Insight.
In the second of his series of articles, Simon Horsington tracks the progress of the IRRV’s own council tax support resource centre
“As proposed schemes are published, the IRRV’s Resource Centre will provide a portal that enables an online library of published schemes.”
Management
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long run – wealth, that is, in terms of employee
commitment and buy-in.
There is danger, in the face of the severe
financial constraints under which everyone
is working, that management becomes too
gluttonous. I’ve recently begun reading ‘Willing Slaves’, a book by Madeleine Bunting,
about Britain’s ‘overwork’ culture. It details how
many more hours are worked in this country
compared to other European states, and
explains how many people feel trapped, and
unable to resist the expectation of ‘putting in
the hours’.
This is what I mean by management being
gluttonous – demanding too much from people.
I observed an anonymous posting on the
internet which read, “I think gluttony describes
America today... our music has to be way too
descriptive in a vulgar way... our movies have
to show us what 40 years ago we took for
granted... i.e. it’s no longer good enough for a
film to let us assume two people are engaged
in sex... we have to see it.”
I’m not going to discuss the merits of the
micro points made here, but on a macro level,
the issue is that, often, less is more. By being
over-prescriptive – gluttonous – you restrict people’s imagination, stifling their creativity
and innovation.
The risk is that we will experience excessive
demand on people’s time, the expectation
being that the more people are present at
work, the more of the work gets done. Not
necessarily so.
Irrespective of paid overtime or not – unpaid
becoming increasingly likely – historically people
often stretch the work to fit available time.
And even if your performance management
measures were so effective that this were
not possible, the chances are that excessive
overwork leads to burn-out. The result will be
that people’s effectiveness is hindered and the
quality of the work hampered.
The key is to create an environment which
enables people to be more productive, but
without impacting upon the quality of work. Not
Fresh from pounding my punch-bag, I reflect on
the need to punish myself in that way. Indeed,
that is precisely what it is... a punishment! A
recent lack of self-control has led directly to
my inflicting severe self-discipline to redress
the balance.
Gluttony has resulted in a weight increase
and lack of physical condition. I am now
enduring a period of temperance, the
corresponding virtue. It’s hard work, but rather
this than what some scriptures teach as the
punishment – being force-fed rats, toads and
snakes in hell!
In my last article, I considered ‘greed’ as an
enemy of man(agement)– it now seems logical
to consider gluttony. What’s the difference?
Whereas greed is the inordinate desire to
possess wealth, goods, or power with the
intention to keep it for one’s self, gluttony is an
over-indulgence to the point of extravagance, or
waste. The former a desire – the latter an act.
So, how does gluttony – more often
associated with over-indulgence in food, drink,
drugs etc. – manifest itself in the workplace?
An example would be where an organisation,
or individual manager, stockpiles excessive
equipment. The risk being that stockpiling in
this way can result in supplies going out of date,
leading to the waste described above.
However, there are more subtle ways in
which gluttony can arise. I concluded last time
by suggesting that a charitable, rather than a
greedy, leader will gain greater ‘wealth’ in the
Sean Langley IRRV (Hons) is a benefits and
revenues consultant, and author of ©The
phat Controller (A Leadership Handbook).
Contact him on www.seanlangley.co.uk
an easy balance to achieve.
19th century author and journalist George W Thornbury once said, “The fool that eats till he
is sick must fast till he is well.”
This can be analogous of management
excessive in its demands upon its workforce.
Ultimately staff will burn out and go sick. Often
there is no option other than wait for them to
return... fasting, in effect. So, beware the
false economy.
This is where temperance is required.
Temperance is generally defined by control over
excess – restraint. It can be characterised as
moderation in action, thought, or feeling. All of
those can have a direct impact upon your staff.
There may be times when you require a little
extra effort from your team, in order to meet a
deadline or deliver a project – a good number
of those loom ahead with the many changes
across revenues and benefits. Temper those
desires by allowing those staff some freedom
and autonomy at a time that suits them.
For instance, the start of the academic year
is approaching. Why not give those that might
appreciate it the opportunity to either drop
off or collect their children, when they are not
usually able to do so?
Of course, much has been written of the
benefits of healthier lifestyles. In the words
of 19th-century Russian Bishop Ignatius Brianchaninov, “If you please and pamper
your stomach, you will coarsen and darken your
mind, and in this way you will ruin your powers
of attention and self-control, your sobriety and
vigilance.” So, over-indulging in food affects
your work. Back to the punch-bag for me, then!
The seven deadly sins – or the seven deadly enemies of man(agement) – part four...
Unwilling slaves
“It details how many more hours are worked in this country compared to other European states, and explains how many people feel trapped, and unable to resist the expectation of ‘putting in the hours’.”
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A dispute followed over the dilapidations
on the property. The council argued that
after June 2007, the appellant was liable for
council tax and billed her for council tax from
5th June 2007 to 9th November 2008. This
was disputed, and the appellant argued that
a statutory tenancy was in place, leaving the
council and not herself as the occupier.
The council argued that it had posted keys
back to Ms. MacAttram, and that constituted
formal surrender of the tenancy, and that they
were no longer in occupation.
The appellant argued that the surrender of
the tenancy was governed by law, and that
an operative lease had come into existence
in June 2006, and that she should not be
considered as being in occupation. She
maintained the law meant that the council
remained in legal occupation for council tax
purposes. On July 8th 2009 she appealed
against liability for council tax to the Valuation
Tribunal, which became the VTE on 1st
October 2009. The dispute before the VTE
was about the point at which the London
Borough of Camden ceased to be liable for
council tax on the property.
The appeal before the VTE began on 13th
January 2010. Significantly, the Tribunal raised
points of law of its own volition, writing to
both parties on 18th February 2010 and
asking them to provide submissions on
two authorities and points under the Law of Property Act 1925, which neither the
appellant nor the council had raised. The
tribunal asked the parties to comment upon
them by March 9th 2010.
After receiving such submissions as they
were able to make, the subsequent decision
of the panel went against the appellant, based
upon the VTE’s interpretation of the law set
out in a decision notice it issued on 30th
March 2010.
Using the statutory route of appeal against
the VTE, the appellant lodged an appeal on
points of law to the High Court against the
A game of snakes and ladders
Legal view
The powers of the Valuation Tribunal England (VTE) to give directions and
introduce points and arguments of law of
its own volition came under the scrutiny of
the High Court in the case of MacAttram v London Borough of Camden [2012] 2nd April – Claim No.CO/5055/2010.
This was one of the first cases to be taken
to the High Court against a decision by the
VTE, which was established on 1st October
2009 – in taking over, the VTE took over the
jurisdiction of the Valuation Tribunals, which
were established for council tax disputes under
the Local Government Finance Act 1992. The
judgment sheds light on how the VTE may
approach technical points of law, including
raising issues which neither side has argued or
even knows about.
The appellant appealed to the VTE against
assessment by the London Borough of Camden that she was liable for council tax on
a flat owned by her for the period 5th June
2007 to 9th November 2008. The property
had previously been leased to the council,
and she argued that on the basis that it was
actually the London Borough of Camden who
should be liable under the hierarchy of liability
under section 6 of the Local Government Finance Act 1992.
She maintained that during the period in
question, Camden was the tenant of the property, and liable to pay council tax. The
appellant had leased the property to the
council for three years from June 2003 to use
for homeless persons. On expiry of the lease,
Camden failed to give up possession, as one
occupier remained. However, Camden Council
refused to give up vacant possession after the
occupier moved out, and it continued to pay
the rent payable under the lease. The council
continued to pay the rent payable under the
lease until January 2007.
decision of the Tribunal made on 30th March
2010, lodging her appeal on 27th April 2010.
On 4th May 2010, the High Court (Nicol, J)
stayed proceedings brought by the council for
a liability order in the meantime.
The case came before the High Court on
2nd April 2012, with Her Honour Judge Robinson sitting as a Deputy High Court
Judge. Neither the VTE nor the council were
represented, and the appellant appeared in
person, alleging errors of law by the tribunal
on the status of the tenancy and breaches of natural justice. The argument regarding
the precise nature of the tenancy was a
complex one, and is best appreciated by
reference to the arguments set out
comprehensively in the judgment itself.
Ultimately, the High Court upheld the position
taken by the VTE as to who was in occupation
as being correct as a matter of law. More
pertinent, however, was the question of
whether the VTE of its own motion should
have raised these technical points of law itself
at the hearing, which went to the appellant’s
complaint about natural justice.
The appellant argued that the VTE, of its
own motion, wrongly introduced material
which did not constitute part of either the
case of the council or that of the appellant’s
presented at the hearing, and in so doing
wrongly construed the scope of Regulation 6(2) of the Valuation Tribunal for England (Council Tax and Rating Appeals) (Procedure) Regulations 2009 SI 2269.
The appellant also complained that it was
unfair of the tribunal to have introduced new
material that was not part of either party’s
case, in the letter dated 18th February 2010.
The appellant submitted that the tribunal had
no power to do that, and that it was unfair
of them to have done so, placing reliance
upon a number of provisions of the Valuation
Tribunal for England (Council Tax and Rating
Appeals) (Procedure) Regulations 2009. She
complained that no reasons were given by Alan Murdie LL.B is a Barrister
Could the Valuation Tribunal England procedures be ‘too clever by half’, asks Alan Murdie
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the tribunal for their direction seeking further
comment on those legal issues, contrary to
regulation 8(3) , that the tribunal had no
power to admit that material of its own motion
under regulation 17, and that in doing
so it wrongly interpreted regulation 6(2) concerning its powers to regulate the conduct
of appeals.
The argument was rejected by the Court,
with Her Honour Judge Robinson stating:
“In my judgment, the tribunal
was perfectly entitled to invite
the parties to provide comment
on the legal materials to which
it referred. Regulation 8(1)
envisages that the tribunal may give
directions on its own initiative, and the
requirement to give reasons in regulation
8(3) only applies where an application for
a direction is made by one of the parties.
Regulation 17(1)(a) specifically entitles a
tribunal to give directions as to issues on
which it requires evidence or submissions,
and, in my judgment, it was very proper of
the tribunal to do so.”
The Court considered it would have been an
error of law for the tribunal to have decided
the case on the wrong legal basis and points
and cases, to which it referred the parties
were relevant to the issues which arose and
were relied upon in the tribunal’s decision. The
approach it had taken was correct in allowing
the parties an opportunity to comment. It was
not a case where the tribunal was, “stepping
into the billing authority’s shoes and acting as
judge and jury in its own cause”.
This is a significant judgment which
helps clarify the position of the VTE when
complicated issues of law arise at valuation
tribunal hearings, which they frequently can
and do in appeals on liability. As a tribunal
determining points of law, the High Court quite
understandably expects the tribunal to get the
law right, and it confirms that the chairman
or the panel of the tribunal will not go wrong
when introducing a relevant point of law which
neither party has appreciated or even knows.
At one level, this is an entirely rational
approach which cannot be faulted on purely
legal and technical grounds. Tribunals exist to
determine the law for parties, and apply their
specialist knowledge and expertise to what
are often complex situations. Through their
knowledge and experience, tribunals develop
appropriate expertise in the area of law, and
will quickly grasp not only the issues of the
case before them, but also recognise relevant
issues which may have been identified by
either the council or the appellant.
But whether this entirely rational approach
is appreciated as wholly beneficial by parties
before the VTE is another matter (certainly in
this case it was not where the parties were
asked to comment on some very technical and
obscure points of law). One problem is that
council tax law, as well as tribunal procedures,
are already complex and daunting to many
individual taxpayers who commence appeals.
Local authority staff may on occasion feel the
same way when responding to appeals. Parties
also have an expectation that their appeal will
be determined on the basis of what they say
and what is argued in response at the hearing,
without the panel introducing new matters.
By introducing wholly novel points of law into
the process, which neither side has raised, the
tribunal risks giving the appearance of not only
complicating the issues, but certainly leaving
an individual taxpayer feeling at a serious
disadvantage. Certainly, the vast majority
of taxpayers confronted with references to
judgments from the higher courts or sections
of statutes, will feel at a loss (in the current
case, the appellant did have the advantage
of having trained as a solicitor). But most
members of the public will have no access
to law libraries or legal databases used by
professional lawyers, and are likely to feel
utterly confused when suddenly presented
with such material. Indeed, some lawyers may
also feel the same way!
Indeed, by demonstrating its technical
expertise in a case and introducing new
material, a local tribunal may risk giving the
appearance of favouring one party against another, or even that it is altering the rules
as it is going along, making a tribunal hearing
seem more like a game of snakes and ladders.
Certainly, tribunal panels will need to tread
carefully to avoid appearing ‘too clever by half ’
if confidence in the fairness and independence
of the system is to be maintained.
“The appellant argued that the surrender of the tenancy was governed by law, and that an operative lease had come into existence in June 2006, and that she should not be considered as being in occupation.”
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The RBS problem shows that when systems
go badly wrong, the impact is significant, such
as mortgages not being paid, business losing
work, and even prisoners unable to raise
deposits to ensure they are released on bail.
Think back to another major system ‘down
time’ in October 2011. Blackberry had a
major system outage. This meant that users
had no access to their emails or apps on their
phones. A small problem compared to the
inability to pay for food, etc., but significant
enough to make all major news reports and do
irreparable damage to Blackberry, or Research
in Motion, as the company is known.
What would happen if the same thing
occurred with Universal Credit? Would we see
riots in the street as claimants were unable to
get their benefits, or would people just accept
the fact that their money would be delayed? I
fancy it might be the former. The fact is that as
we become more dependent on technology,
we also become more vulnerable.
Don’t get me wrong, I’m all in favour of
channel shifting people to a favoured access
channel such as the internet, but there must be
some back up when this isn’t available. Some
sort of face to face or telephone contact must
be available, and able to cope with demand
should the online channel fail. Luckily RBS had
that option, and so opened their banks and call
centres longer and made lots of apologies via
prime time TV adverts.
If things go to plan with Universal Credit,
then there may be very few local points for
face to face service, and any telephone contact
available may be limited. Surely the best place
to administer and support claimants would
be in local authorities. Authorities are well
equipped to staff short term demand, often
being one of the largest employers in the area,
and well placed to deal with civil emergencies.
Interestingly enough, in July 2012 the Driver and Vehicle Licensing Agency (DVLA)
issued a report called ‘The Case for Change’.
This report seems to understand the need to
When IT systems go badly wrong
Technology
Digital by default is still the government’s
preferred method of service delivery, but
recent events could call this method of delivery
into doubt.
You don’t normally see the names Royal Bank of Scotland (RBS) and the
Department for Works and Pensions
(DWP) in the same sentence. But IT failure
this year seems to have highlighted a
correlation between the two organisations.
The DWP made a statement that every
applicant for Universal Credit will have an
online account “through which they will be
able to access information about their claim
and Universal Credit payments, much like the
options that online banking services currently
offer. The financial rewards from work will also
be made clearer, with recipients able to view
online the positive effect of increased earnings
on their household income.”
I bet they are wishing they hadn’t made
any reference to online banking, given the
debacle the Royal Bank of Scotland recently
had with its computer systems, and the
problems customers had with accessing their
accounts. The DWP’s reference seems a little
unfortunate. But as RBS is 80% owned by the government, then this could be seen as
yet another government IT fiasco!
I just wonder whether if the Universal Credit
online system crashed in a similar manner
to the RBS system, would we see Jobcentres
open on a Sunday, as we did with the bank?
Would we see cash payments being made
by the Jobcentre to needy people to pay
their landlords, or purchase food when their
Universal Credit payment isn’t made on time?
Why not? That’s exactly what RBS did in June
of this year.
use online services but still maintain a front
line service – but that service may not be
provided by the DVLA.
The report sets out a proposed future way
of doing business, and follows a consultation
document – ‘Transforming DVLA Services’.
The consultation made clear the ongoing
movement towards electronic transactions, and
acknowledged that this involved reviewing the
current service delivery model, including face
to face operations. It asked how customers
would like services delivered, and sought their
views on potential options, such as the wider
use of intermediaries.
In the report, the DVLA highlights that it is
committed to:
• support the government’s ‘digital by
default’ agenda
• reduce administrative burden on
stakeholders and reduce red tape (Red
Tape Challenge commitments); and
• reduce its annual operating costs by
£100m per annum by 2015, compared
to the 2010 baseline.
The Case for Change report is a must read for
anybody looking to move services online. The
DVLA has an excellent track record of offering
services online, such as the licensing and
registering of vehicles, and are obviously at the
forefront of digital by default.
The DVLA is very clear about its objectives,
which are to:
• enhance customer service by better aligning
customers’ needs with existing or new
service delivery channels – saving money
for customers and DVLA
• increase the use of existing and planned
electronic services, and move away from
more costly paper channels
• substantially reduce the operational cost
of the services
• give commercial customers greater
responsibility and ownership over the
way that they transact with DVLA.
Simon Bailey IRRV (Hons) is a Director of
ISCAS – contact him on [email protected]
(www.iscas.co.uk)
Perhaps the DWP should look to the DVLA and RBS for some helpful contingency advice, suggests Simon Bailey
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Two of those bullet points appear to make it
clear that cost and saving money are the
key drivers for the change. The transformation
to digital services is to save £26m a year –
savings not to be sniffed at.
The Agency’s proposals would see
transactions and services gradually migrate
from the existing 39 DVLA local offices to a
mix of alternative channels, such as online,
centralised postal and intermediary face to face through DVLA’s new Front Office Customer Service (FOCS) contract... although
I can’t seem to find any documents or details
as to what the FOCS contract contains.
Interestingly, some 79% of respondents did
not agree with the proposals outlined in the
consultation. This was largely due to concerns
over potential degradation of services,
and uncertainty as to exactly what the new
services would provide. The consultation was
a high level document with no detail provided
about the proposals, which I found odd for a
consultation. However, using the responses
received, the DVLA has now been developing
the details of the proposals to ensure they
meet the wide ranging concerns expressed.
The key element for the DVLA moving
forward is that they have recognised the need
to ensure that they have alternative channels
in place before closing offices. The DVLA
indicate that FOCS provision will have 4000+
locations, undertaking a much wider range of
transactions than are currently offered.
The consultation has shown the DVLA that
they must make it clear to the motor industry
and individual customers that the Agency is
committed to maintaining existing service channels until viable alternatives have been
provided to customers and stakeholders before
effecting local office closures. This sounds
like a completely different offering to the one
proposed for Universal Credit, and I wonder
when the consultation on Universal Credit
was held.
The DVLA in their report stated that they
will ensure that alternative channels do not
degrade the options that customers are
legally entitled to, for example inclusivity
and disability access. In many areas, the
response from stakeholders and customers
was positive, in terms of improved access
to services and reduced travel burden. The
DVLA will continue to work with customers to
maximise the mutual benefits.
The Agency appears to be getting all their
ducks in a row before fully committing to a
digital by default channel. We will have to
wait and see whether the DWP take the same
common sense approach.
There is some good news for digital by
default – the Office for National Statistics has
just published the Internet Access Quarterly Update, for quarter one (Q1) of 2012.
At 2012 Q1 there were 42.16 million
adults in the UK who had used the Internet,
representing 83.7 per cent of the adult
population. The 8.12 million adults who had
never used the internet represented 16.3 per
cent of the adult population.
There was a decrease of 83,000 adults
(1 per cent) who had never used the internet
since 2011 quarter 4, and a decrease of
618,000 adults (7.1 per cent) compared with
a year earlier (2011 quarter 1).
With internet usage increasing, the DWP’s
target of 80% of transactions being online
doesn’t seem so ludicrous after all. I just hope
the government remembers the RBS debacle,
and puts viable alternative channels in place,
as have the DVLA.
“ Would we see riots in the street as claimants were unable to get their benefits, or would people just accept the fact that their money would be delayed?”
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Doherty’s despatch
Consultations &the informationmarketplace
“The additional consultation would need to happen quickly, otherwise LAs will find difficulty in getting a scheme in place by next April.”
Pat Doherty FIRRV CPFA is an independent
consultant and a Past President of the
IRRV. If you wish to comment on anything
in the article please email him at
Government funding towards the DHP
scheme has been increased from £20 million
per annum up to £165 million for 2013/14
and £135 million for 2014/15. The increased
funding has been made to help LAs support
specific groups of people affected by some
of the key welfare reforms.
Following the increased funding, DWP will
be introducing monitoring arrangements,
to track how DHPs are being used. This
consultation also seeks views on the proposed
method of monitoring DHP expenditure.
The responses to this consultation will
be used to help complete the final guidance
and monitoring arrangements, so hopefully
all LAs responded by the deadline of
31st August – although it seems to me that
August is a particularly ridiculous time to be
going out to consultation, as it is the peak
time for holidays!
31st January in order to avoid having to use
the government’s default scheme, which
would leave councils out of pocket, as next
year’s funding contains a 10% cut.
Many authorities are already out for
consultation on their schemes even though
the existing timetable is tight, but if any
further changes are to be made because of
the complexity of the policy, the additional
consultation would need to happen quickly,
otherwise LAs will find difficulty in getting a
scheme in place by next April. So ministers
need to make a decision quickly about
payment to parishes.
Discretionary Housing Payments guidance manualThe Department for Work and Pensions
(DWP) issued a consultation paper on 1st
August seeking views on the Discretionary
Housing Payment (DHP) guidance that it
provides to local authorities (LAs). Current
guidance was issued in March 2011, and is
being updated to take account of changes
in the benefits system, such as the abolition
of council tax benefit (CTB) and the
introduction of Universal Credit (UC).
It also includes a local authority good
practice guide.
The Discretionary Financial Assistance
Regulations 2001 provide the legal
framework that allows DHP to be made,
and it is intended that the regulations will
be amended later in the year to reflect the
introduction of UC and abolition of CTB.
The DWP will publish a copy of the draft
regulations in the autumn.
Council tax benefit funding and parish councilsIt is understood that ministers are
reconsidering the options as to whether
parish councils should receive a portion of
the CTB funding which will be distributed
to billing and major precepting authorities
from next year, and this could require a
fresh round of consultations.
If this is the case, and significant changes
are required to an already tight timetable,
this could cause problems for LAs as they
attempt to get localised schemes ready in
time for January 2013.
LAs need to have their schemes ready by
Pat Doherty’s roundup this month ranges from Discretionary Housing Payments and council tax support funding through to data sharing
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‘Open data’ white paperThe government has published a white
paper on ‘open data’, outlining its
commitment to transparency in government
and public services.
Among the aims outlined in the paper
are easier access to public data, more
standardised formatting and embedding a
‘presumption to publish’ most data.
The responsible Cabinet Office minister
said that public services would become
more personalised and efficient, and public
bodies would use the data they hold in much
smarter ways. “In the past the public sector
has not been clever or effective at sharing
key data. We are determined to shift the
culture of the public sector to improve data
sharing where it is in the public interest and
within legislative boundaries, and we will use
the latest technology to deliver this,” he said.
Responsibilities for public bodies include
publishing data in open, standardised
formats and maintaining and publishing
inventories. Public bodies will also be
required to publish data through a single
online access point, with clear descriptions
and ‘statements of principles’.
While data should be provided free
‘wherever appropriate and possible’, it would
be offered at ‘a fair price’, where it was costly
for the public sector to provide.
Two new organisations will form part of
the government’s strategy:
• the ‘Open Data Institute’ will work closely
with the public and private sectors to unlock
commercial value from data
• a cross-government linked data working
group will also be established in the next
few months to lead in the creation and
maintenance of technologies across the
public sector.
A privacy expert will also be appointed to
the public sector transparency board. The
white paper says that privacy experts would
be included in all sector panel discussions
across Whitehall when data releases were
considered. Routes to redress would also be
strengthened, and standards introduced.
The minister said, “The success of the
information marketplace hinges on our
ability to safeguard people’s data from
misuse and rigorously protect the public’s
right to privacy. We will ensure that privacy is
not considered as an afterthought but at the
beginning of all discussions concerning the
release of a new dataset.”
The white paper was launched alongside
plans to publish hundreds of pieces of
government data about public services for
the first time. All government departments
will produce their own open data strategies,
and will release new statistics over the next
year. A spreadsheet of forthcoming data
publications will also be published.
The UKBA and the Border Force plan
will increase the range of information
about their activities and performance.
The Cabinet Office will publish data on
which organisations receive public money
from civil programmes, and the DWP will
release statistics on job outcomes and work
programme ‘sustainment payments’ – the
monthly payments given to organisations to
keep clients in work – from autumn 2012.
The DWP is also running a pilot programme
to link and share information on benefit
claimants – and a new Social Mobility
Transparency Board will look at linking
anonymised data to generate a greater
insight in this area.
On the point of anonymised data, the
white paper says, “increasing the availability
of anonymised data has the potential to
increase the possibility of identity disclosure”,
adding that more needs to be done to
“protect individuals’ right to privacy and the
confidentiality of the data it holds.”
The data will be divided into three types
– big data, customer feedback data and
‘mydata’, which will give individuals secure
access to their own personal information.
Nearly 9,000 datasets have already been
released on the open data portal, from local
crime statistics, sentencing rates, hospital
infection rates, and also data from the
Met Office.
Opening up data is intended to underpin
the government’s public service reforms
by offering people informed choices that
(they say) simply have not existed before,
but government departments will need
to provide citizens and businesses with
information, training and tools to ensure
use of data is both ethical and responsible.
Aspects surrounding how to keep data
anonymous will need to be addressed, and
the reasons why and how the data is being
used should always be clear. Safeguards to
protect privacy should be at the heart of any
open data strategy.
Whilst the white paper is welcome, it has
to be of concern that all the emphasis on
transparency and open data will distract from
the sharing and re-use of data within the
public sector itself (and across its partners),
in the delivery of public services. This relies
on the same technologies and engineering
capabilities, and could deliver real and more
immediate benefits.
“All government departments will produce their own open data strategies, and will release new statistics over the next year.”
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Viewpoint
increase in numbers of people over 65 is very
large indeed.
There are some other significant factors as
well. There are one million more women than men in our population. It will take a
cleverer person than me to work out if that has
an impact on the future of local authorities,
and I am sure as more data is produced
over the coming months, there will be more
interesting pointers to the challenges we face.
These figures give us a clear indication of
the future. In the past, the announcement
of the census data has been much used for
planning for education and other services.
This time it gives a good indication of the
immense challenge in finding resources to pay
for additional health costs for the ever growing
elderly population, and although most of
you won’t be retiring until you are 77, there
is an immense challenge in offering fulfilling
life opportunities for people. The pension problem is one still not grasped. There is
indeed a real danger of people working until
they are 77 and then the state not having
sufficient resources to see them through their
20 year retirement.
The solutions to social care, not only for the
elderly, but also for other vulnerable people,
have not been put in place by a succession of
governments, because it has become too big a
problem. Finding the necessary resources now
is a daunting problem.
The failure to invest properly in our
ageing infrastructure means that there is
a great backlog of repairs to roads and other
vital assets.
It is therefore not hard to see why it is
difficult to have a vision of local authority in
five years time.
There was an article in The Times in the
1940’s (before my time – honest!) which I
read not so long ago but now cannot find, in
which the writer says how he leaves his house
having used the water, gas and electricity and
walks along the road to catch the tram to work.
As he did so he was passed by an ambulance
taking someone to hospital and children
going to school. The point of the article was
that at that time all these services and many
more were run by local authorities, and what
a bargain it was for the individual, as they
were all financed from the rates. This was, of
course, only partially true, as then there was
considerable grant aid.
The point is that we are altogether different
animals now, running fewer services and
with very scarce resources.
When we recently had a ‘peer review’, the
peers were critical of the Corporate Plan, as
they felt it lacked vision. We disputed that. Our
vision was to be as efficient as possible, offer
a good standard of basic services, and adopt
a low risk approach to life. In short, survive in
the hope that austerity has a finite life span,
and we can emerge again to move onward and
upward. I always like to end on an upbeat note
and that’s it for this month!
Moving onward and upward
Hands up anyone who has got a clear vision
of what a local authority might look like in five
years’ time. Yes, five years. This is ‘horizon scoping’. A disappointing number of you have
put your hands up. I expect it was only the
Chief Executives. They have vision in their
job descriptions, so they must be good at it!
It is, I think, a great sadness that there is so
much to do and so much that local authorities
could do in their own communities, but we
cannot plan for the future. Everything is
against us – the worldwide economic situation
means that the certainty of funds to back
programmes of work are no longer there.
There is a lack of consensus on how local
services are best run. At the time of writing,
we have learned of the considerable increase in population in this country – a figure which
looking historically at past census information,
is probably still understated. The figures for
the authority I currently work for shows a
9.5 per cent increase over the mid-2010
figures, and we believe that might be
understated still by a similar amount. The
national increase is 1.5 per cent. The reported
“The solutions to social care, not only for the elderly, but also for other vulnerable people, have not been put in place by a succession of governments, because it has become too big a problem.”
Richard Harbord is having a little difficulty getting to grips with ‘horizon scoping’
Richard Harbord MPhil CPFA FCCA IRRV
(Hons) FIDP FBIM FRSA is a member of
the IRRV and CIPFA Councils and Junior
Vice President of the IRRV
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