Issue - meetings

Report FSD1701

Members considered Liberata’s performance for Revenues Services in the six months to 30th September 2016.

Although the in-year Council Tax collection rate at 30^th September 2016 was 58.0%, 0.3% less than the same time last year, there had been a 1.67% increase in Council Tax and an increase in the minimum contribution by working-age Council Tax Support claimants to 25% of household liability. The number of households registered for Council Tax also increased by 527 in the first six months of the financial year. The collection rate on current year and arrears was 58.2%, 0.1% down on the previous year.

For Business Rates, in-year collection at 30^th September 2016 was 56.3%, 1.4% lower than the same time last year. Removal of Retail Relief from April 2016 and an increase in businesses opting to pay by 12 monthly instalments rather than 10 were highlighted as mitigating factors. The collection rate for the current year and arrears was 55.3% at 30^th September 2016, 1.2% down on the same time last year.

Use of the Civic Centre’s payment kiosk had reduced in terms of transactions and value collected; in the first six months of the current financial year payments to the value of £1,109,243 (9761 transactions) were taken compared to £1,141,676 (10,308 transactions) in the same period last year.

The average number of payroll payments made each month (including pension payments) was also highlighted along with Pension Fund Membership numbers.

In her six month performance letter, Liberata’s Contract Director highlighted that collection of out of year debt had been affected by an increase in the amount of static debt now held, relating to the level of debt below which a summons is issued. There were nearly 600 cases where Liberata was unable to take further recovery action even though a liability order was in place. This was due to the account holder lacking any realisable assets or the value of the debt being below the necessary threshold to apply for Bankruptcy or a Charging Order. In looking to obtain payment (and distinguish between those unwilling rather than unable to pay) Liberata would try to engage and work with the account holder to meet a recovery plan. Advice would also be provided on agencies such as Citizens Advice. Writing off the debt was an option but each individual case would be looked at should it be possible to eventually clear the debt.   

The Contract Director’s letter also highlighted that the collection rate from Orpington Business Improvement District (BID) at 30^th September 2016 was 73.62%, a decrease of 3.38% against the previous year. It was explained that two payment dates are provided for the Orpington BID with the reduced collection rate applying to the earlier payment date. Liberata were confident that a satisfactory collection level could be achieved from Orpington BID at year end.

RESOLVED that information within Report FSD1701 be noted along with the Liberata letter detailed at Appendix 1 to the report.