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www.irrv.netMarch 2009
ISSN 1361-1305 £5.50
INSID
E: L
ocal Govern
men
t Om
budsm
an u
pdate // IT issu
es at un
itary coun
cils // Man
agem
ent advice
www.chandlers-bailiffs.co.uk
Chandlers has been collecting Local Authority revenues since its incorporation in 1996, and continues to provide effective Bailiff and Civil Enforcement Services to England and Wales.
Chandlers continues to meet the demands of our clients by bringing new approaches and services to the market place. We are always looking at new ways of improving our services to our clients by using the most up to date Information Technology and new initiatives in the way we collect revenues.
For further Information contact Adaine Gardner M.E.S.A - Managing Director 020 8290 0866
www.jacobsbailiffs.co.uk
In 2009 Jacobs celebrate 50 years in business and are currently responsible for providing bailiff / debt recovery services for over 120 local authorities throughout England and Wales. With full appreciation that we are, effectively, an extension to the workings of each local authority client Jacobs offer a solid, reliable and efficient service. Long term client retention is our goal and we have an enviable proven track record of 100% client retention at procurement exercise in the last 10 years.
Dave Cornes IRRV MESA Telephone 0151 650 4994 Email [email protected]
To ADVERTISE hERE plEASE ConTACT
Tregartha Dinnie
Vicki parry or Sam Rowe-GreenT 01908 306 500E [email protected] [email protected]
CERTIfICATED BAIlIffS
[email protected] The Local Authority Insolvency team is a unique specialist unit assisting and supporting local authority revenue personnel in their recovery duties, with an established reputation for providing independent, user-friendly solutions.
Insolvency proceedings can provide a positive solution. If you would like to take advantage of Grant Thornton’s FREE “Pinpoint Report” service to assist in the effective targeting of the most suitable debtors to pursue through bankruptcy proceedings, or benefit from FREE technical advice, FREE in-house insolvency training, or FREE representation at meeting of creditors, please contact:
InSolVEnCy/ BAnkRupTCy
philip Chadwick - Director M 07801 818 649E [email protected]
lisa Chadwick - Manager T 0114 262 9777 M 0777 342 07070 E [email protected]
www.ladirectories.com
LA Directories Ltd provides Local Authorities with web-based knowledge management solutions for RevBens services, that are on-line, plain English analyses of law, caselaw and guidance presented by subject. Our flagship product The Benefits Directory is fast becoming the standard by which others follow because ‘everybody benefits from The Benefits Directory’ - so says Cambridge CC. The Revenues Directory currently covers country-specific Council Tax, and Non-Domestic Rates will be available later in 2009. The Benefits Procedure Manual, a bespoke solution, is currently under development for imminent availability. LADL also provides RevBens training and consultancy services.
Tel: 0845 094 3348 Email: [email protected]
houSInG BEnEfIT
www.onestep.co.uk
We have been supplying our comprehensive solutions to Bailiffs, in-house Local Authority recovery departments and Debt Recovery operators since 1987. Recommended by our customers and their clients alike, our solutions demonstrate intelligence, quality, integrity and transparency, thereby enhancing our customers’ professionalism to their clients.
Continual development by our own team of programmers, and our frequent research into the latest advances in the ever changing world of IT, keep our solutions best of breed. Thus, our customers can focus on their core business activities while we take care of the IT. Available as either a traditional deployment or a hosted solution.
Steve parrott Email: [email protected] Tel: 01702 426400
IT SupplIERS
www.mouchel.com
Mouchel delivers fully managed revenues and benefits services, and a range of support services. Our service includes:
u Fully outsourced front and back office services for Housing Benefit, Fraud,, Council Tax and Business Rates u Remote Processing for revenues and benefits u Practitioner and System training u Council Tax Discount and Exemption reviews u Consultancy Services & interim management
We utilise an innovative but proven approach to process flow redesign, achieving significant business improvement and our teams of experienced practitioners are well versed in a variety of applications and DMS systems.
For more information contact us at [email protected]
SuppoRT SERVICES
www.sungardps.co.uk/aspiren
SunGard Public Sector Aspiren Ltd is a leading provider of performance and information management technology and consultancy to the UK public sector. We have an outstanding track record of local, regional and large scale national deployments and have won a number of awards for our collaborative approach to service delivery. Our innovative solutions designed specifically for Housing benefits include:
u Risk Based Verification u SunGard’s Right Benefit Toolkit u Secure data transmission, validation and cleansing (Gov Connect) u Fraud and error reduction tools (Intercept) u Key lines of Enquiry (KLOE) servicesu Local authority HB and corporate performance improvement services
To find out more about our solutions please contact +44 (0) 8453 300 747 or e-mail [email protected]
pERfoRMAnCE AnD DATA MAnAGEMEnT SoluTIonS
CERTIfICATED BAIlIffS
IRRV InsIghtManaging Editor John Roberts
Editorial Director Celia Mather
Editorial Assistant Annie Jennings
Art Director Joel O’Connor
Designer Anja Linke
publisher Tim Lloyd
Abstract Associates
Managing Director Roger Wilsher
Bakehouse J108
100 Clements Road
London SE16 4DG
T 020 7064 8400
W www.abstractassociates.co.uk
IRRVChief Executive
David Magor, OBE
41 Doughty Street
London WC1N 2LF
T 020 7831 3505
W www.irrv.net
Enquiries
Chief Executive’s office 020 7691 8972
Membership 020 7691 8980
Conferences 020 7831 0881
IRRV Insight is produced by Abstract Associates
on behalf of the IRRV.
Unless otherwise indicated, copyright in this
publication belongs to the IRRV.
March 2009 ISSN 1361-1305
Advertising
Tregartha Dinnie
Vicki Parry or Sam Rowe-Green
T 01908 306 500
Editorial John Roberts
T 07952 659 258
Subscriptions 020 7691 8975
© IRRV 2009. 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 Julie Holden IRRV MCMI CMg; Senior Vice-President Geoff Fisher FRICS (Dip Rating) IRRV; Junior Vice-President Kerry Macdermott IRRV; Phil Adlard Tech IRRV MInstLM MCMI; Alan Bronte FRICS IRRV; David Chapman IRRV; Tracy Crowe CPFA IRRV; Barbara Culverhouse IRRV CPFA; Carol Cutler IRRV; Tom Dixon RD BSc (Est Man) FRICS IRRV; Pat Doherty CPFA IRRV; Ian Ferguson IRRV; Richard Guy FRICS (Dip Rating) IRRV MCIArb; Richard Harbord MPhil CPFA FCCA IRRV FIDP FBIM FRSA; Mary Hardman IRRV FRICS MCMI; Gordon Heath BSc IRRV; Caroline Hopkins IRRV; Roger Messenger BSc (Est Man) FRICS IRRV MCIArb; John Roberts IRRV; Eric Rose FRICS IRRV; Kevin Stewart IRRV MAAT MCMI; Angela Storey Tech IRRV MCMI; Bob Trahern IRRV; Julie Trahern IRRV; Allan Traynor FCCA IRRV
In the next issue...The Government Connect joined-up initiative is put under the spotlight u Ibrahim Hasan updates us on the implications of data sharing under the FOI Act u Gordon Heath homes in on rating in Faculty Review u Gandlake reviews its Scottish ‘round table’ event
“Coaching supervision is not about what I have done wrong, but how I can do things better” p14
05 Chief Executive’s notes 06 Inside the Institute The latest news, events and other Institute issues
12 Cover story Phil Adlard and Jonathan Passmore discuss the
importance of coaching and coaching supervision
15 Faculty Review An analysis of the key technical issues facing
the revenues, benefits and valuation faculties
24 Doherty’s despatch26 Management27 LGO update Andrew Hobley of the Local Government
Ombudsman tackles the latest complaints
28 In the business29 Once upon a time30 IT/E-government32 Legal corner 34 Viewpoint
When you have finished with this magazine please recycle it.
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Contents
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Recent
publicity as a
result of fre
edom
of information inquiries
made by the national press
has revealed further problems
with the delivery of large scale
IT projects through various
government departments.
It is interestin
g to contrast the
performance of these contracts
against the exemplary delivery of IT
projects in local government.
I make this statement against th
e
backcloth of an uncertain pattern of
service delivery to the revenues and
benefits market. D
espite decisions th
at
may be made as a result of acquisitions and
mergers in the software supply industry
, it is
critical that
the delivery
of software
solutions
to local government continues to retain “th
e
competitive increment” to
ensure that service
quality and performance is maintained.
To put the overall iss
ue in context, the
over-spend on key IT contracts w
ith central
government is now £18.6bn, which can also be
interpreted as building 61 critical care hospitals,
completing Heathrow’s new runway twice…
or hosting the London Olympics in
2012 twice!
One wonders what th
e reaction would be if these
problems existed in local government.
Over the years s
oftware suppliers o
f revenues and
benefit products have delivered the government’s
policy initiatives on time and within budget. I c
annot
recall a time in the last 2
0 years where local government
has failed to implement th
e policy initiatives of central
government. Perhaps the major change that can be
contrasted with the long list of central government
computer project disasters is the implementation of th
e
Poll Tax in the 1990s, where several su
ppliers to the market
place delivered new systems within a tim
e scale that, to say
the least, was challenging.
In the demanding world of local service delivery, the politic
al
mechanisms would not to
lerate failure on the scale that we see
in central government. It is a tru
e measure of democracy that
the scrutiny of major projects in local government is
such that
this form of failure is u
nlikely to ever happen. In these times of
economic difficulty it is essential that local government and its
suppliers maintain a realisti
c and quality-driven approach
to major changes in IT. As I m
ove around the country
and see exciting developments of th
e information
age, it is w
ith a feeling of security
and trust
that the stro
ng relationships between
the private sector IT suppliers and
their local government customers
appear to be gettin
g stronger.
Long may it continue. D
“I cannot re
call a
time in
the last 20
years where local
government has failed
to implement th
e
policy initia
tives of
central govern
ment”
In times of economic difficulty, it is essential that local government and its
technology suppliers maintain a realistic approach to IT, says David Magor
Chief Executive’s notes
Keeping up
with quality
➦David Magor OBE IRRV
is Institute Chief Executive
01
West Midlands Association ‘mock Valuation Tribunal’ The IRRV West Midlands Association held a mock Valuation Tribunal in Birmingham, following the November Forum, with John Hewitson chairing an eminent VT panel. The other panel members were Lee Anderson (Regional Manager – Central) and Sarah Morgan (STPO at Leamington Spa). Lester Bertie of the Leamington Spa office played the role of clerk, as in real life! VO for the day was Mark Radford (Jones Lang La Salle) and Jeff Swann (VOA retired) took the role of the Rating Agent in an appeal concerning a crematorium and whether it should be valued on the VO’s revenues/throughput method or on the contractors basis. Institute Senior Vice President Geoff Fisher introduced “learning points” during proceedings, including elements of court procedure, and advocacy and expert witness.
IRRV London and HomeCounties Association In a joint meeting with
the Rating Surveyors’
Association, the City
of London Guildhall
marketing suite was full
to overflowing in January,
as RSA speakers Tom
Dixon and Mark Higgin
dealt with valuation
matters including rating
in a recession, MCCs,
Revaluation 2010, and
repair. Gordon Heath
and Gary Watson
spoke on topical
revenues issues,
including backdated
RV, the new empty rate
exemption, the business
rate supplement and
small business relief.
In addition, Simon
Ranyard from LB
Enfield spoke on
the use of the county
court for NNDR
recovery purposes. The
presentation slides
can be viewed at the
Association website.
Brian HillInsight is sorry to report that former Secretary of the IRRV’s predecessor body, the Rating and Valuation Association, died recently. A full obituary will appear in the April issue.
01 Tribunal Clerk and Rating Agent 02 Mark Radford quotesRyde on Rating03 The distinguished Valuation Tribunal Panel
02
03
Since returning from a much-needed break in the Caribbean, Julie Holden has been very busy with various presidential activities…“B efore going on holiday I visited the Bournemouth
International Centre to walk through the venue for Annual Conference in October. And once again, it looks set to be a truly memorable event.
The Council round was busy but before our evening out, I had a
separate meeting with Senior vice-President Geoff Fisher to sign some
certificates following the recent examination round - it is important that
final qualification certificates are signed personally to recognise the
achievement and work that the students have put in, well done to all
those that are due to receive a certificate over the next few weeks.We had an inter-Institute wine tasting quiz with the Rating Surveyors
Association, as council member Tom Dixon is also the President of the
RSA this year. It was tough but great fun – the two IRRV teams actually
took first and second place – I am not sure what that says about the IRRV
council members and wine, I will leave you to make your own minds up!It was nice to welcome the five new council members to their
first meeting since the elections, and they all demonstrated how keen they were to take part in the workings of the Council.
The venue for the London and Home Counties Association annual dinner was also a truly splendid evening, during which, Chairman Kevin Sutch held an auction and managed to raise over £700 for Marie Curie Cancer Research. Until next time, wrap up warm and let the preparations for annual billing keep you busy!”Julie’s blog is regularly updated – to keep up-to-date with the President’s activities, visit the Institute’s website: www.irrv.net and click on President’s blog.
Read all about it!Institute member and regular magazine contributor Sean Langley has recently published his first management handbook, The Phat Controller. Sean is pictured (left) looking at home at his first book signing, with Annual Conference attendees.
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Inside the Institute
NEWS &
EVENTS
1. Who do you admire? It is Max Woosnam who has my admiration. Born in 1892 Max was an incredibly talented sportsman, war hero and also rose to the top of the chemical industry, ultimately becoming a member of the board of ICI. I hadn’t heard of him until 2006 when the book All-Round Genius: The Unknown Story of Britain’s Greatest Sportsman by Mick Collins was published.
Before his death in 1965, he had scored a century at Lords, represented Cambridge University at football, cricket, tennis and golf before going on to play football for Chelsea, Manchester City and England’s international side (the latter two as captain). He served on the western front in WWI and then went on to score a maximum 147 at snooker, win the men’s doubles at Wimbledon and an Olympic gold in 1920 for the men’s doubles.
Once you know about him, it’s hard not to be astounded!
2. If you had a £50,000 windfall how would you spend it? I have two sons in their 20s, both building their lives, but I would use a windfall to help to give them more security for the future.
3. What has been your best career decision? Moving from the Audit Section to the Rating Department when working for a large local authority, and avoiding a move to accountancy!
4. What is your favourite book, film or TV programme? I enjoy the novels of Robert Goddard. Each one recounts a complex mystery with countless twists and turns and with unpredictable endings. There are no heroic characters, just real people in real places, facing some exceptional situations.
5. What do you look forward to most when you’re not at work?The outdoors. As much as I enjoy the comforts of home and being with family, I look forward to exploring new places. The freedom to get out and about is very enticing. I enjoy walking in the countryside and also enjoy travelling in Britain and in Europe, exploring history and nature.
John Ransford has replaced Paul Coen as the new chief executive of the Local Government Association (LGA).
LGA chair Margaret Eaton announced that Mr Ransford’s contract will run until December 2010 and his deputy will be Jo Miller, currently Deputy Chief Executive of Bradford MDC, who will join the association from 1 September.
“These appointments place the Association in a very strong position in this challenging period, and provide stability and continuity up to and beyond the next General Election”, said Ms Eaton.
Vice-chair Sir Jeremy Beecham added: “It is a crucial time for the LGA to have stability in their talented team of professional officers, and I am delighted with the appointments.”
CV IN BRIEFBill began his local government career in the 1960s at Brighton Council. He then went on to work in revenues departments in London, Hampshire, Oxford and Berkshire, before returning to his stomping ground in East Sussex, where he held the head of revenues and benefits post at Wealden DC for 18 years.
He became involved at national level in the late 1980s serving on the local authority working parties that advised Government in relation to the Poll Tax, and then Council Tax. Bill enrolled with the former RVA in 1969, qualifying in 1973. He was co-opted to national committees in the late 1980s and was elected to the IRRV Council in 1992.
Bill took early retirement in 2002 to become a freelance revenues and benefits consultant and trainer, but remained very active in the Institute, as a member of committees and working parties, a speaker, author and examiner. He was a founding member of the Examinations Board and Institute Junior Vice President in 2004. Bill stood down from the IRRV Council in 2008 but remains the Chief Examiner for the Professional Project route to corporate membership and sits on the Local Taxation & Revenues Faculty Board.
NEw ENglIsh ValuatIoN tRIBuNal pREsIdENt Professor Graham John Zellick has been appointed the National President of the Valuation Tribunal for England. He brings with him a wealth of knowledge and expertise from the tribunal world, having been a member of the Criminal Injuries Compensation Appeals Panel, the Competition Appeal Tribunal, the Data Protection Tribunal, as well as being a Justice of the Peace. He also served on a range of other public sector bodies.
womaN jaIlEd FoR BENEFIt FRaudA mother-of-five, who received almost £62,000 in falsely claimed benefits, has been jailed for 18 months. Agnes Colbert of Beeston, Leeds, pleaded guilty at Leeds Crown Court to the fraud, following a joint investigation between Leeds City Council and the DWP.
The fraud included housing and council tax benefit between March 2004 and September 2007 totalling £23,098.20.
all ChaNgE at thE lga
hot off the pRess…
Congratulations…… to Immediate Past President Bob Trahern, who recently married fellow
Institute Council member Julie Childs, in the pleasant surroundings of
Brownsover Hall, near Rugby. Insight sends the happy couple the very best
wishes – is this another IRRV first?
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Bill Lovell
Take 5
STuDEnT MEMBERS:Name EmployerShazia Sultana Peterborough City CouncilJulie Swords City of Bradford Metropolitan District CouncilTanya Curran CSA Training Assessment CentreRyan Chalmers West Dunbartonshire CouncilAndrew Hartley Capita Business Services LtdJane Rounding Capita Business Services LtdMillie Enyi Enfield London Borough CouncilChristine Farmer Bury Metropolitan Borough CouncilCatherine Anne Flanagan Capita Business Services LtdCarol Giles Ribble Valley Borough CouncilHelen Hill Breckland District CouncilNicola Holmes South Norfolk District CouncilRachel Humphreys West Berkshire Council Hayley Kennedy Manchester City CouncilSarah Lathwood Scarborough Borough CouncilWilliam McCann Coventry City CouncilWilliam Moore West Dunbartonshire CouncilPhyllis Phillipson Newcastle City CouncilDonna Puddepha Manchester City CouncilJacqueline Rayner Darlington Borough Council
TEChnICIAn MEMBERS:Name EmployerElizabeth Cooper Audit CommissionCarolyn Dawson Valuation Tribunal Service for WalesNicola Edwards Eastbourne Borough CouncilAndrew Bamber South Ribble Borough CouncilJane Berry VOA, London CityC Betts Rother District CouncilJade Brooks Aylesbury Vale District CouncilDarrel Brown Valuation Office Agency Assessment CentreAlison Deeley Valuation Office Agency Assessment CentreDavid Hughes VOA, ChesterNeil Humes Valuation Office Agency Assessment CentreWendy Jane Hutcheson Valuation Office Agency Assessment CentreKathryn Mackinnon Valuation Office Agency Assessment CentreAndrew McKillop Valuation Office Agency Assessment CentreSusan Reid Valuation Office Agency Assessment CentreJames Salt Valuation Office Agency Assessment CentreKathleen Sheldon Valuation Office Agency Assessment Centre
The Institute has launched its new online distance learning provision
The new online portal for anyone wishing to study towards IRRV qualifications can be found at: www.irrvdistancelearning.org.uk.
Distance Learning is a great way to fit a qualification around your current employment. It’s totally flexible, as you decide when studying best suits you. All you need is a computer and internet access. But don’t worry, you won’t be alone, your tutors and the Distance Learning staff offer constant support.
Call 020 7691 8984 or visit the website to find out more.
studying?The IRRV Spring pre-examination course: 25 April 2009 until 1 May 2009 at Keele University, Staffordshire.For more details and to book online, visit: www.irrv.net
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Newmembers
Inside the InstituteDecember
2008
Examinations
Pass List
IRRV lEVEl 3 CERTIfICATE In loCAl TAxATIon AnD BEnEfITS - EnGlAnD & WAlES
Andrew Barlow Gateshead Metropolitan BCJulie Bell Stafford BC
Louise Bennett Ellesmere Port & Neston BCAmrik Boghan Birmingham City Council
Tamanna Boylla Bedford BCRachel Brickley Scarborough BCSteven Candy Medway CouncilCarmel Culligan Enfield London BCCarmel is prizewinner for Prevention and Detection of Housing and Council Tax Benefit Fraud Joanna Dowley Telford & Wrekin CouncilAndrew Driver East Devon DCRachel Ellis Rhondda Cynon Taff County BCRachel Fairbairn Hambleton DCNeil Fawcett Hambleton DCLorraine Fay Hinckley & Bosworth BC Karen Godley Calderdale MBCAmy Goodrum Sunderland City CouncilAlan Greensit Harrogate BCKatie Hale Purbeck DCHelen Hamblin West Lindsey DCRachel Hill Cambridge City CouncilSion Hurle Telford & Wrekin CouncilSidiqua Khan Leicester City CouncilDavid Lynch Wandsworth London BCDeepa Majithia Leicester City CouncilElizabeth Marshall Tendring DCVictoria Marshall Mouchel Business Services LtdKay McKeand Craven DCSusan Morrison Huntingdonshire DCMark Petty Derby City CouncilAmirah Rahman Kingston Upon Thames Royal BCJulie Randall Fenland DCSarah Richardson East Staffordshire BCPaul Robbins Oadby & Wigston BCAndrew Rowe Dacorum BCAngela Simpson Capita Business Services LtdCharlotte Watkins Leicester City CouncilJulie Whiston Trafford Metropolitan BCSara Wilcock Colchester BCJacqueline Wittstock Walsall Metropolitan BC IRRV CERTIfICATE In loCAl TAxATIon AnD BEnEfITS - SCoTlAnD Nwabueze Aghodeaka Edinburgh City CouncilIsabel
CoRpoRATE MEMBERS (RICS quAlIfIED): Name EmployerColin Lambert FPD SavillsMark Outtrim Trilogie Cre Ltd
nVq MEMBERS:Name EmployerSultan Ahmed Kirklees Metropolitan Borough CouncilMike Alvarez Babergh District CouncilP Bradley Kirklees Metropolitan Borough CouncilTracey Brown Swale Borough CouncilVicky Cole North Dorset District CouncilLisa Marie Gibbs Swale Borough CouncilMarika Hastie Ipswich Borough CouncilFrances Jackson Kirklees Metropolitan Borough CouncilChristine Jowitt Barking and Dagenham London BCIqbal Khatoon Kirklees Metropolitan Borough CouncilRichard Mallon Flintshire County CouncilHayley Morrow Swale Borough CouncilAsma Nureen Kirklees Metropolitan Borough CouncilElizabeth Pursell Kirklees Metropolitan Borough CouncilJacqueline Robertson Babergh District CouncilCatherine Tracey Penwith District CouncilSally Worledge Penwith District Council
Cook West Lothian CouncilGetrude Matiashe Aberdeen City CouncilChristine Morrison Glasgow City Council IRRV CERTIfICATE In loCAl TAxATIon AnD BEnEfITS - SCoTlAnD - ADDITIonAl SuBjECTSNwabueze Aghodeaka Edinburgh City CouncilNon-domestic rating law Scotland IRRV TEChnICIAn - EnGlAnD AnD WAlESMelanie Abbott Broxtowe BCHelen Currin Stafford BCRhys Hawkings Cardiff CouncilChristine Jervis Kerrier DCCarol Jones South Staffordshire DCBenjamin Marshall Epsom & Ewell BCMarion Padley South Staffordshire DCSharon Plant South Kesteven DC IRRV TEChnICIAn - SCoTlAnD Wendy Shand Fife Council IRRV TEChnICIAn - SCoTlAnD -ADDITIonAl SuBjECTS Joseph Chiriseri Edinburgh City CouncilKevin Fraser Perth & Kinross CouncilBoth in Housing And Council Tax Benefit Law Niloufar Kordbacheh Edinburgh City CouncilHousing And Council Tax Benefits Administration full pRofESSIonAl quAlIfICATIon lEVEl 1Robert Coleman Pembrokeshire County CouncilDawn Graham South Cambridgeshire DCAndrew Hall Derwentside DCRoss Hatfull Hackney London BCKayode Idowu Rochdale Metropolitan BCSimon Parkin Eastbourne BC full pRofESSIonAl quAlIfICATIon lEVEl 1 - SCoTlAnD Iain Kefferty West Lothian Council full pRofESSIonAl quAlIfICATIon lEVEl 2Nichola Beebe Trafford Metropolitan BCMargaret Byrom Harrogate BCChristopher Carman Wandsworth London BCTracey Fishwick South Tyneside Metropolitan BCPaula Lewis City and County of SwanseaAmanda Maltby Doncaster Metropolitan BCTessa Reeves West Berkshire CouncilMichelle Smith Stafford BCDarren Warman Eastbourne BC full pRofESSIonAl quAlIfICATIon lEVEl 2 - SCoTlAnD Allyson Gammie Scottish Borders Council full pRofESSIonAl quAlIfICATIon lEVEl 3Laurent Alexander City of Bradford Metropolitan DCAlisonEvans Pembrokeshire County CouncilAlison is prizewinner for Case Studies Trudie Mann Forest Heath DCCeri Thomas Pembrokeshire County Council VoA/IRRV full pRofESSIonAl quAlIfICATIon pART 1 Heather Judith Davies Valuation Office AgencyKathryn MacKinnon Valuation Office AgencyJames Salt Valuation Office Agency VoA/IRRV full pRofESSIonAl quAlIfICATIon pART 2 Michael Hingley Valuation Office AgencyJohn Holloway Valuation Office AgencyBarry Newbury-Neale Valuation Office Agency
December
2008
Examinations
Pass List
he Institute is one of the relatively small numbers of awarding bodies that offer nationally recognised
qualifications in the UK. National recognition means that the Institute has submitted qualifications for approval and enrolment onto the national frameworks operating within the UK.
The National Vocational Qualifications in Local Taxation and Benefits, and the examination-based Level 3 Certificate in Local Taxation and Benefits sit on the National Qualifications Framework (NQF) for England, Wales and Northern Ireland. The Institute’s Scottish Vocational Qualifications are placed on the Scottish Qualifications Framework (SQF).
Looking to its own future means the Institute must consider the evolution of qualifications nationally. Numerous organisations and systems with their own logos and abbreviations are part of this national scene.
The NQF and SQF are now in the process of replacement by new unit-based frameworks – the Qualifications and Credit Framework (QCF) and the Scottish Credit and Qualifications Framework (SCQF). These frameworks were created to make qualifications more flexible and transparent, where the
starting point for the creation of qualifications is one or more existing unit. Units will be credit-
rated to give an indication of their size, and credit rating will be based on notional learning hours, or the average total learning time a student will be expected to spend to acquire the skills and/or knowledge needed to satisfy the unit requirements. The levels will exist as before (Level 3 Certificate in Local Taxation and Benefits) to indicate the intellectual and practical demands that units make on candidates.
The NQF and SQF are effectively a list of qualifications at different levels. A new aspect of the QCF and SCQF is that units will now be the basic framework component, and the “currency” of the frameworks will be credits.
Awarding bodies such as the Institute will seek to create and submit units, and to propose suitable combinations of units to create revised qualifications. The Institute will ensure that it builds on its well-established suite of existing qualifications to create units that will form part of updated qualifications, and that these will continue to be relevant and sought-after in their occupational sectors. Therefore, all units will be part of a national resource, like a collection of bricks, from which awarding bodies can select to build their own qualification structures. The
Institute will both contribute to and draw from this collection.
New units are expected to refer to National Occupational Standards (NOS), and the Institute will continue to play its role in maintaining the NOS in Local Taxation and Benefits. While it does not own these standards, the Institute, as the pre-eminent body in its field, plays a key role in advising on and updating their content when required. Indeed, the IRRV has been asked by the Financial Services Sector Council (FSSC) – the body that has stewardship of the NOS – to contribute to a standards review and updating
exercise over 2009, in advance of developing QCF and SCQF units. Work on the units that will arise from the revised NOS will be carried out in the early part of 2010. FSSC’s counterpart in the valuation field is Asset Skills, the Skills Council, responsible for the built environment, and contact will also be made with Asset Skills to deal with unit development in valuation, as we take forward higher level qualifications.
By taking an active part in national qualification developments, the Institute will be well placed to structure its future qualifications policy and maintain its position as the awarding body for local authority revenues, benefits and valuation. D
By building on its already solid framework, the IRRV is well placed to develop and enhance its educational qualifications. Michael Hopkins reports
T“All units will be part of a national resource, like a collection of bricks, from which awarding bodies can select to build their own qualification structures”
➦Michael Hopkins is the Head of
Professional Services with the IRRV
step by step
studying?June 2009 examinations.For the timetable and further details, see the website: www.irrv.net
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development of the IRRV network of qualifications. While the changes are now meeting with agreement, the new membership grades were deferred, to allow a careful review of the potential changes and their effect on both new and existing members. A key report on the accreditation of IRRV courses, training initiatives and notes was received, with a view to enhancing quality control,
and the Institute’s role in the emergence of formal enforcement qualifications was discussed in detail. The regular report on Faculty Board activity met with a plea for members of the boards to become more proactive in their roles, as activity across all three boards showed no let-up, with two meetings recorded by each Board since the Annual Conference.
Kevin Stewart stepped up to chair CS, ensuring that the committee tackled another heavy agenda in a timely but comprehensive fashion. A key area for attention
was the delegate and exhibitor feedback (which
will feature in a future issue of Insight) from the Annual Conference, together with the preparations for the forthcoming conferences and meetings. Sales and sponsorship figures were examined in detail, and members noted that in spite of the economic downturn, things were holding up well, courtesy of the efforts of the Institute and commercial partner Tregartha Dinnie.
Oral reports were received on contracts with key players, and a report from the Communications Sub-Committee detailed activity on magazines, other publications, and the development of the website.
Roger Messenger’s Policy and Resources Committee got to grips with the latest management accounts, and proposed the budget for 2009, which was later ratified by the full Council meeting. Members were pleased to note that the difficulties of 2007 had passed, and it was equally pleasing to note a return to
‘the black’ was likely in the current year. Complacency is still not on the agenda, though, and careful budget monitoring and attention to realistic income projections from products will continue. Again following the all-important financial theme, the committee noted the revised membership levels, in particular the action taken to ensure that non-payers would not receive IRRV services.
Following dinner, which included members of the Rating Surveyors Association (currently chaired by former IRRV Past president Tom Dixon), members returned to base ready for another early morning start. President Julie Holden, chairing her first full Council meeting in that capacity, welcomed Council members attending their first meetings – Phil Adlard, Tracy Crowe, Gordon Heath, Ian Ferguson and Brian Jeffrey. The meeting ratified the decisions of the previous day after some debate, and Chief Executive David Magor presented his regular oral report. Continuing the spirit of optimism, David highlighted the role of Council members in a wide range of key advisory roles, and told of the early success of the IRRV-hosted DWP PiNS anti-fraud product. David also outlined the success the IRRV is reaping from its selective policy of bidding for funding in respect of ‘Leonardo’ training and World Bank project initiatives.
Council members bid farewell to each other until the next round of meetings, scheduled for early April, but the governance role won’t wait until then, with countless other meetings and actions due in the meantime… onwards and upwards! D
➦John Roberts is Managing Editor
of IRRV magazines, a Council member and
a Past President of the Institute
COMMITTEE CHAIRS:
Commercial Services Committee:Chairman – Caroline HopkinsVice-Chairman – Kevin Stewart
Law, Research and Education Committee:Chairman – Kerry MacdermottVice-Chairman – Dave Chapman
Policy and Resources Committee:Chairman – Roger MessengerVice-Chairman – Carol Cutler
Professional Conduct Committee:Chairman – Richard GuyVice-Chairman – Julie Holden
entral London was the venue for the January round of Institute Council meetings. Kicking things off was Richard Guy’s
Professional Conduct Committee, which met early on Thursday 29 January to discuss an agenda which covered several confidential items, ranging from the Institute’s Code of Conduct, liaison with the RICS, through to an oral report on complaints levelled against members. It was pleasing to note that the latter item revealed no business on this occasion, but the Code of Conduct will receive attention in Insight later this year.
Next were the concurrent Law, Research and Education (LRE) and Commercial Services (CS) meetings. A traditionally packed LRE agenda, steered by Kerry Macdermott, saw a lengthy debate on the unfolding
CChief Executive David Magor and President Julie Holden relax after another hard day’s work
John Roberts reports on the latest round of IRRV Council meetings
Inside the Institute
Running
the
Institute
ore than a year ago I highlighted the process of coaching and how it can be the most effective management tool you can possess. It helps encourage individuals to develop their own ideas and solutions, and to become better performers in their own right.
However, even an effective coach will come up against a metaphoric brick wall sometimes and be faced with the need to discuss situations with another, effectively, to be ‘coached’ himself. And this is where supervision comes into play.
The first element to any coaching supervision relationship will be in place long before a supervisor is called in. To ensure that coaches maintain a level of knowledge sufficient to be able to meet the needs of their coachees, all coaches should keep a self-reflective log outlining the issues that they have covered in their coaching sessions. Useful pieces of information will be whether any tools were used or if any ‘million dollar questions’ elicited ‘million dollar answers’.
This log helps keep the coaches on track as much as it helps them develop their own learning
– but this can only take things so far. It is a requirement of The European Mentoring and Coaching Council’s (EMCC’s) ethical code that appropriate coach/supervisor relationships are established. It states: “The coach/mentor will maintain a relationship with a suitably qualified supervisor, who will regularly assess their competence and support their development.”
And this, I guess, is where I come in. Part of the continuous development of coaching includes the need to be more competent in coaching, akin to its own continual professional development (CPD), identified at Oxford City Council at an early stage.
the coach’s
VIew
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Coaching and coaching supervision are both key management tools. Internal council coach at Oxford City Council, Phil Adlard, and coaching supervisor, Jonathan Passmore, explain the benefits to Insight
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There is a number of criteria that must be satisfied when looking for a supervisor. This includes ensuring that the supervisor:u has experience as a coach/mentor;u has experience of being supervised;u has an understanding of the context of coach/mentoring; andu shows a commitment to themselves and others.
Taking all these into account, at Oxford CC, we were fortunate that Jonathan Passmore, a leading coaching authority was able to become our coaching network’s supervisor.
There are numerous articles and books on coaching and supervision, some written by Jonathan himself, so there seems little benefit in repeating them. Instead, the focus will be on the personal advantages of coaching supervision and what can be derived from it.
Julie Hay once described supervision as “super-vision – the ability to see what others can not”, and that is where I acknowledge that a good supervisor such as Jonathan is such a valuable resource.
It is also important for me to recognise that coaching supervision is not about what I have done wrong, but how I can do things better. Supervision should, above all, mirror the coaching
relationship with all the elements for an effective coaching relationship – openness, trust, and willingness to learn being as integral as ever.
Allison Collier, a former coach at Oxford CC, now working independently, summed coaching supervision up as “an opportunity to give me breathing space for my own thoughts”. And this, to some extent, mirrors my own views and experience of coaching supervision. Prior to my most recent meeting with Jonathan, I had found myself, during coaching sessions, becoming
too involved with the issues concerned, almost as if I had been sucked into the ‘coachee world’, when it would have perhaps been better to maintain a professional distance.
Jonathan was quick to identify this, and suggested a number of useful techniques to prevent this occurring again, also aiming to increase my competence. The outcome of this was that my next immediate coaching assignments were more structured and more productive, with identifiable action points firmly established by the coaches.
In addition to the ‘formal’ supervision relationship, ‘peer supervision’ is another means of meeting this need. The network at Oxford CC has developed and changed in composition over the years, and will no doubt change in dynamics many times more. The
support and encouragement that the network provides, both informally and in a more formal peer supervision setting, has remained constant.
While not having the strengths that a high-quality coach/supervisor can offer, peer supervision does serve a useful purpose as a sounding board in which coaches can exchange ideas and offer suggestions (within the bounds of confidentiality of course).
In essence, coaches should be looking to continue learning and, if coaching is as valuable a learning tool as it is made out to be, any coach serious about his work should seek to establish that same relationship with another, which is so valuable for their coachees.
ver the past 10 years, coach-ing has become a popu-
lar tool for organisations to help managers improve performance, and also as a tool that managers can use with their staff to aid development.
In the first phase of development, external coaches offering coaching to the chief executives and directors
of organisations dominated coaching. In the past five years this has changed, as many organisations have recognised that coaching can benefit
staff throughout the organisation. So organisations are now training their own managers to become qualified coaches.
Over the past five
years I have helped over 200 managers, from local authority chief executives and directors, to project co-ordinators and benefits managers, become qualified coaches. Much of this training has been in-house, working in small groups of 10-12 people. It offers managers a new skill to use with their staff, as well as with coachees who are referred to them. It also gives them another formal university qualification to add to *
the supeRVIsoR’s VIew
Part of the continuous development of coaching
includes the need to be more competent in coaching”
A coach had difficulties with his manager, who had referred a team member for coaching. The manager had suggested to the team member that they needed coaching, but did not tell them why. However, in a two-way confidential meeting the manager did tell the coach about performance problems, and how they expected the coach to ‘solve’ them.
When the coach and team member met, it was obvious that the team member was unaware of the ‘performance issues’.
The coach was therefore faced with the challenge of undertaking what should have been the manager’s job, and undermining the role of coaching, which should be a tool to help the individual achieve his goal. The coach quite rightly stopped the process and called in the supervisor for guidance.
In this case, the coach, coachee and manager had a three-way meeting, in which the manager shared his concerns with the coachee, and they both agreed a set of goals for the coaching. The coach and coachee then agreed a time to meet to start work on these shared priorities.
case stuDy 1:
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➦➦Phil Adlard, a member of the IRRV Council, is Benefits
Performance and Quality Manager at Oxford City Council and also
operates as an internal coachwithin the council’s coaching network.
He can be contacted at: [email protected]
O
the finance or management qualification they already have. For the organisation, in-house coaches can reduce the cost of buying them in externally, and make strides in performance improvement. The training has typically been short, maybe 10 days spread over a six-month period, to obtain a Post-graduate Certificate in Coaching, although institutions like the University of East London also
offer longer masters- level qualifications in coaching.
As coaches take on new work, fresh challenges emerge, and this is where coaching supervision comes in to play. The supervision process provides support and ethical guidance for the individual as he continues on his learning journey. Some coaches would see this as ‘super-vision’ (seeing things the coach may
not see), by providing an expert look at challenges. Others have suggested that coaching supervision is more ‘extra-vision’ (just a pair of fresh eyes on a common challenge), and allows the opportunity to talk problems through with an experienced coach. Either ay, the coaching supervisor should be an experienced coach and trained coaching supervisor.
As in other areas of work a coaching supervisor is bound by a confidentiality agreement, just as a coach is. In the case studies (left and on page 15), I have drawn upon my supervision experience of working with local authorities (LAs) across the country, rather than at Oxford CC.
The general best practice advice from professional bodies like the Chartered Institute of Personnel and Development is that qualified coaches should have one hour of supervision for every 30-35 hours of coaching. Given that most local authority managers combine coaching with their day job, this means two or three supervision meetings a year, but the structure of these varies.
Some organisations request to have both one-to-one supervision meetings and a group meeting, whereas others mix the one-to-one meetings with a master class – combining supervision with CPD. In all cases, coaching is not about delivering bad news or taking the place of a manager.
In all coaching supervision work, the key challenge for the coach is to ask about their learning from the ongoing coaching work, and how they can use this to enhance their contribution to the work of the organisation – helping individuals within it to flourish. D
Cover story
case stuDy 2:
A head of service wanted to talk through his career plan, which included leaving the local authority. The coachee had been referred by his manager, and was unhappy in his role, but the coach was concerned as to whether he should work with the individual. The coach had tried a way to move the coachee but both were stuck.
The supervision session explored different tools and techniques which could be used in these types of situations, as well as the learning the coach could take from a situation where he was stuck, just like the coachee was stuck with his situation.
➦➦Dr Jonathan Passmore is a chartered
psychologist, an accredited coach
and coaching supervisor, a
regular conference speaker and an
author. His books include Excellence
in Coaching. He is the director of
the Coaching Psychology Unit at
the University of East London, and can be contacted
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Coaching should be a tool to help the individual achieve their goal
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sFaculty Reviewmarch2009
Revenues and benefits departments will be aided by Unipart’s successful lean methodology scheme, says Tony Worsdall
p18
p19
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Rising to the challenge
Dave Chapman takes centre stage this month to update us on recent activity impacting the local taxation and revenues faculty
position of debtors are likely to be put in the spotlight in due course.
The Private Members’ Bills ballot is held at the start of each new parliamentary session. Fourth in order of priority in the new session is likely to be a Bill that would provide for the automated payment of Small Business Rates Relief for eligible businesses in England. We await the detail of the Draft Bill with interest.
We also have the Business Rates Supplement (BRS) draft guidance to local authorities, which covers the ‘who, why, what, where and when’ issues to be considered before implementing a BRS scheme. It also seeks views on the value of offering to authorities expert advice on BRS via a National Project Panel. Nice to think that with all the change that’s going on, there is at least this offer of a hand-hold for local authorities! D
Well, now we have it. Local Government Minister John Healey has shown firm determination in the face of widespread practitioner concern. Putting aside arguments about practicability, Mr Healey has ensured that, in England, this year’s council tax bills and information leaflets will each include information about authorities’ efficiency scores.
A reduced form of wording is now required, and there appears to be no legislative bar to placing them on the back of the demand notice. Whether local authority printers will have been keen on this approach is another matter. And think on this – the Climate Change Act 2008 provides for the introduction of waste reduction schemes, with one incentive being a council tax rebate, so that even more information might be needed on future council tax demands. The waste reduction scheme has had no takers so far to run pilots, yet it may eventually get off the ground. We may look back on the times when we had to find additional room solely for the efficiency information and think we had it easy.
The Faculty has responded to the recent Welsh Valuation Tribunal (VT) reorganisation proposals to amalgamate the four current tribunals into a single VT. The response can be summed up as, “if it ain’t broke, don’t fix it”. Welsh VTs have already proven themselves to be proactive in implementing structural improvements, and they have not identified any grass root concerns about the current framework. We didn’t hold with the implication in the consultation document that there are variations in tribunal practice that warrant these changes – even the consultation document could only muster the statement that variations ‘may occur’. If that is the main ground for undertaking changes, then the case has not been proven. The Institute voiced its concern that ultimately, service to the appellant will suffer through these cutbacks.
What of some of the other issues in local taxation? We have a three-way pull in recovery and enforcement issues. First, HM Treasury is consulting on proposals to bring civil fees back to full-cost levels and to increase magistrates’
➦Dave Chapman IRRVis Chairman of the Institute’s Local Taxation and Revenues Faculty Board and a member of the IRRV Council
Faculty
Board
updatep16
FR
viewsnewsand
fees to 100% cost-recovery levels for the first time. One of the proposed fee hikes is in committal fees for council tax and non-domestic rates – up to £250. The Board will consider this at its next meeting. I suspect that this level of fee may impact significantly on decisions across England and Wales to use committal as a means of enforcement.
Second, there is Ministerial concern that local authorities may be resorting too hastily to enforcement of council tax debt in the present economic downturn. Alternative strategies are being discussed, but presumably there will be an expectation that in-year collection rates should not suffer as a consequence.
And third, the Ministry of Justice continues to develop its revision to the fee structure for the taking control of goods. The processes to ascertain the financial
that paramount control rested with the bookstore owners, and the VT found that only one hereditament existed.
A private museum situated in a workshop and consisting of historic machinery was held by the VT to be a non-domestic hereditament. The appellant had contended the property was domestic, but in dismissing the appeal the VT stated it could not be classed as an appurtenance, nor was it wholly used for living accommodation.
The correct service of a completion notice has also been considered in a recent VT case. The appellant contended the notice had not been served to the company’s registered office, and on the date stated the property could not be considered complete. The VT quashed the notice on the grounds that the billing authority could not present any evidence in the form of inspection notes to justify its opinion.
In a recent ombudsman case, injustice caused by
Case law updatep17
Paul Ellis takes us through a brief summary of recent case law and related activity across revenues
mal-administration was found after a London authority made a woman bankrupt even though she had mental health difficulties. While the council as an entity knew of the woman’s situation, the revenues department did not. The ombudsman did not think it unreasonable for officers to look beyond their own department and consider a council’s records as a whole. This is in line with guidance from the Information Commissioner, which says that information held by different authority departments can be shared as long as it’s for a related purpose and that data protection principles are applied.
There is still mileage left in the re-organisation debate, with Breckland, South Norfolk and King’s Lynn and West Norfolk councils obtaining a judgment against the Boundary Committee to extend the consultation period. Proposals to develop unitary councils were expected to have been announced by the end of December 2008. D
➦Paul Ellis is Head of Customer and Benefit Services at Craven District Council and an examiner for Level 1 Local Taxation Law and Practice
FR
After a flurry of activity leading to my last update things have slowed down a little. Most activity seems to be centred on enforcement. Yorkshire Bank Finance v Mulhall and Mulhall questioned the application of the Limitation Act 1980 where a creditor with a judgment supported by a charging order had not taken steps to enforce it for more than 12 years. It was held there was no basis to discharge the order, and the owner was entitled to seek payment of all that was due under the charge.
In John Lewis v Pearson-Burton it was held that the District Judge had no legal reason not to grant a bankruptcy order. The judge had dismissed the petition, basing the decision on the disproportionateness of the bankruptcy petition, and the availability of other means of enforcing the debt. As the bankruptcy limit is £750, the petitioner had the right to apply for a bankruptcy order. The petition was remitted to the county court although there was now also a claim that payments had been made.
In Mitchell v North Lanarkshire Council it was held non-compliance with the Admininstration and Enforcement regulations, which made certain stipulations regarding the demand notice and the accompanying information, did not nullify the charge the tax could be collected.
In a case involving Camden LB the judge remitted back to the VT on the basis that there had been an error in law when the VT had not fully considered all the facts on a sole or main residence issue. I confess to not being entirely clear where the error in law was as substantial evidence was presented to enable a reasonable decision on residency to be established.
The shortage of case law this month allows me to take another look at recent valuation tribunal (VT) cases. The rating of coffee shops within the curtilage of bookshops, commonplace in today’s town centres was considered in one such VT case. A number of limitations placed on the coffee shop were evidence
Legal l pholes
attention of local authorities across the UK as they look at ways to improve efficiency and rise to performance targets in quality, cost and delivery. Perhaps it is not surprising that much of this interest is originating from the area of revenues and benefits where challenges are being felt every day, by all staff and in every area of work.
Lean principles may not be a new concept to local government, but the Unipart approach is not based on a traditional consultancy model and it is not an initiative or work programme. It is designed to create an environment for continuous improvement without the need for management intervention, where there is devolved responsibility for monitoring and maintaining performance and a clear focus on critical areas of work and customer requirements. The emphasis is very much on the role and participation of individuals and departmental teams, and a collective responsibility for waste reduction and continuous improvement.
Practitioners, who have employed ‘lean’ and continuous improvement to great effect in their everyday duties at Unipart, work in partnership with client organisations. It is not based on a ‘one size fits all’ approach, has no pre-determined magic formula, and is a far cry from conventional consultancy or management instruction. It is an involving, collaborative, practical and evolutionary process where the benefits of lean thinking become an implicit part of the way staff members approach their jobs, with participants becoming ‘lean practitioners’ in their own right.
In future articles, we will look at how public authorities are moving towards this new culture and how it encourages different authorities to learn from each other as they seek to improve work efficiencies and levels of performance. In particular, we will highlight the practical experience in the world of revenue and benefits and how it helps teams to rise to their challenges. D
In the first of a series of articles, Tony Worsdall examines the Unipart lean methodology scheme, which is set to lend a helping hand to revenues and benefits departments
And, with a touch of economic uncertainty and a sprinkling of political variables, rising to the challenges is a challenge in itself!
The task is not simply a matter of tweaking various departmental processes, and tinkering with the responsibilities of individuals will only create new challenges further down the line. It is more a case of harnessing and supporting the primary resource – the people who carry out the work – and recognising that challenges are common to practically all departments.
The real pressure is a critical need for sustainable and continuous improvement that enables change to be taken in its stride, creating a motivational environment to provide the flexibility and focus to meet ever-evolving performance objectives. There is no off-the-shelf cure, but there are many solutions.
Sharing with others, eliminating wasted resources, challenging the status quo and finding better ways to “do things” are all beneficial in the public and private sectors. It is little wonder, therefore, that many public authorities are now considering the principles of ‘lean thinking’, which has had a huge and far-reaching impact on the performance and success of many major corporate organisations.
One company that has gone further than most is Unipart, where a unique ‘live and breathe’ approach transformed the business. It has been so successful that other public and private sector organisations are now working in tandem with ‘lean practitioners’ at Unipart to adopt a similar approach in their own operations. HM Revenue and Customs, for example, is now well along the path of achieving ‘lean’ UK tax administration by harnessing the practical experience, tools, techniques and approaches that are now very much a way of life for everyone at Unipart.
The “Unipart way” is now attracting the
There is little doubt that today’s challenges for revenues and benefits departments are substantial.
➦Tony Worsdall is Managing Director of e-mpirical, a specialist transformationconsultancy for Public Sector clients
Lean services
p18
FRRisingto the challenge
“It is a case of harnessing and supporting the primary resource – the people who carry out the work – and recognising that challenges are common to practically all departments”
Credit crunch, financial hardship, looming redundancies, high unemployment, health and welfare issues… we are definitely facing troubled times. But what are we really doing to help our customers, neighbours, friends and relatives? If the answer is “nothing” then shame on you.
Financial or social inclusion, call it what you like – we can all do a bit to help somebody, and most councils probably are. But if you are not, why not pinch the simple idea that we used at Huntingdonshire? Whether it helps 1,000, 100 or just ten, customers, it is worth the time, effort and money.
Did I say money? Oh dear, we have not got a budget for anything these days! Or are you just paying lip service to the words ‘customer service’?
I work in local taxation and although I was aware of some local organisations to refer customers to for assistance, we did not have a comprehensive list or an area that contained them all. So I had a chat with my head of service and was given permission to produce a poster and leaflet, with the proviso that I had no real budget!
So eight weeks, 25 hours of work and £500 later, I had a leaflet and a couple of posters (right). The cost was covered by some of the organisations involved, and the local taxation department.
Leaflets and posters were distributed to doctors’ surgeries, chemists, local Post Offices, libraries, local social service offices and sheltered housing sites, to all the organisations involved and to our own service and information centres. The local press has produced three articles so far, and more media involvement is planned.
I initially contacted several local organisations, including the Citizens Advice Bureau, debt counselling services, the law centre and the main housing association, as well as other customer service centres within the council. We then formed a group of ten different organisations and arranged to meet every three months for a networking session in which to brainstorm ideas for new initiatives.
If you are interested and want a rough blueprint of what we did and what we are continuing to do, visit the Huntingdonshire website: www.huntsdc.gov.uk. D
Credit crunch comment p19
Gary Oakes explains his council’s approach to alleviating poverty in the current crisis
➦Gary Oakes is Assistant Local Taxation Manager with Huntingdonshire District Council. Email: [email protected]
FR
Innovative initiatives
The Royal British Legion was one of the organisations involved in our leaflet.
We had all heard of ‘the poppy appeal’, but were unaware of what it actually does to help the people who serve, have served, or have links to somebody who has been in service, for their country.
Debt counselling, welfare advice, grants, loans, housing assistance… the list was endless.
See its website: www.britishlegion.org.uk, or call: 08457 725 725 for more information or for the details of your county branch.
Advice / Welfare Organisations /
Funds and Grants
Christians Against Poverty
Free debt counselling - call freephone 0800 328 0006
Is an award winning debt counselling charity operating through a network
of local centres. A debt advice centre for Huntingdon has recently launched
in partnership with Huntingdonshire Community Church. The central CAP
team will negotiate terms with your creditors, while the locally based
debt advisors will work with you to establish an effective budget and
work towards being debt free. However difficult or stressful your situation
has become, CAP will be happy to talk to you and bring hope into your
situation. Website: www.capuk.org
Citizens Advice Bureau
Free, confidential, impartial, independent advice to help people resolve
their money, legal and other problems.
Huntingdon:
6 All Saints Passage, PE29 3LE. Tel: 01480 388900
Mon – Thurs 9.30 to 12.30 drop in,
1.00 to 3.30 phone and follow up appointments
St Neots:
28 New St, PE19 1AJ. Tel: 01480 388905
Mon – Thurs 10.00 to 1.00 drop in,
1.30 to 4.00 phone and follow up appointments
Specialist debt appointments: St Ives Tuesday am, Ramsey Wednesday pm
CAB Outreach Ramsey Wednesday am Yaxley Wednesday pm plus two
new sessions at St Ives coming soon. Phone 01480 388900 for details.
Struggling
to pay your bills?
This leaflet has been prepared jointly by all the organisations contained within it
CASE STUDY:
Landlords in many cases have simply
had to reduce the rent they were asking
in order to attract a tenant, but simply
reducing the rent may not be suffi cient to
attract tenants, and other incentives may
also need to be given.
The landlord may offer a rent free period
in lieu of, or as well as, reducing the
rent. The length of the period will vary
depending on the type of property,
its location, demand and the relative
bargaining strengths of each of the
parties. A rent free period covering
a number of years has caused some
questioning as to the true rental value.
The landlord may offer to pay the cost of
capital items that would normally be paid for
by the tenant, such as the fi tting out of the
unit, the carrying out of improvements, and
costs incurred in moving to the new property.
Such contributions need to examined
carefully, as the lease will often contain
provisions as to how such improvements
etc., are to be treated at rent review.
Landlords will often seek to have the value
of such improvements refl ected in the rent
at the next rent review.
Landlords may agree to take over the existing
accommodation of a tenant. The advantage
to the tenant is that the landlord becomes
responsible for the cost of the previous
accommodation and he can move quickly into
the new accommodation.
The advantage to the landlord is that the
new accommodation quickly becomes income
producing, and usually reduces outstanding
fi nance charges. The Rating (Empty) Property
Act 2007 would increase the cost of such an
incentive to the landlord.
Lease structures have become more fl exible
over recent years and tenants are giving
far more consideration to the lease terms,
particularly the following issues:
Upward only rent review clauses – where
tenants will often seek to have a rent review
clause that is based on the true rental value
of the property as at the review date. The
upwards only clause may result in a tenant
paying in excess of the true rental value of
the property if rental levels fall;
Break clauses – the current pressure is for
the tenant to be allowed to break his lease at
specifi ed times, often at a rent review;
Length of lease – substantial pressure is
being exerted for leases to be for shorter
periods (fi ve or ten years) and;
Reverse premiums – payments made by
an outgoing to an incoming tenant where the
market rent has fallen below the level of the
rent actually paid under a lease.
Next time, I will look at the means by
which such effects can be taken into account,
which will be supported by spreadsheet
models that can be downloaded from the
Institute’s website: www.irrv.net
In the fi rst of a two-part article, Peter Brown
investigates the effect of the economic
downturn on the property market
Valuation corner
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RENTREDUCTIONS
RENT FREE
PERIODS
CAPITAL CONTRIBUTIONS
LEASEA range of letting incentives can also be found in the market, including the following:
ACCOMMODATION
TAKE BACK
Turmoil in the fi nancial market has had
a huge impact on the general economy
and the property market since late
2007, with a substantial deterioration in
late 2008.
The commercial sector started
to feel the impact in the fi rst quarter
of 2008, just in time for the 2010
revaluation, with its 1 April 2008
antecedent valuation date. The market
clearly differs from one area to another,
and some comments may not be
appropriate for all areas.
The change in economic climate can
be seen to affect the rental market in a
number of ways:
demand is reduced, with tenants
being reluctant to move or releasing
surplus accommodation onto the
market as their business contracts;
supply will exceed demand, with the
poorer quality property suffering the
most;
a reduction in the number of
schemes being started unless the
developer has secured either a tenant
or purchaser for the property;
speculative schemes under
development may either be mothballed
pending a change in the market, or
completed in the hope of fi nding a
tenant or purchaser. The impact of the
Rating (Empty Property) Rates Act
2007 may stop developers from fully
completing schemes, so as to avoid
Completion Notices and the payment of
empty rates;
tenants have diffi culty in disposing of
surplus accommodation;
landlords will seek to let empty
property by giving concessions to
tenants so as to avoid incurring paying
the costs of keeping the property
empty, such as empty rates, insurance,
service charges, repairs etc; and
the number of transactions
decreases making it more diffi cult to
analyse the market.
FR
LEASE STRUCTURES
The approach taken will depend on the nature of such contributions and what the contributions were in respect of.
In some cases the contribution may have little, if any, impact on the rental value of the property – it may, for example, relate to such items as carpeting and shop fittings, which are personal to the tenant and may not have any general market value. In other cases the contributions may be in respect of items such as shop fronts, suspended ceilings, lighting and the internal division of the property, all of which would have an impact on the rental value of the property.
In analysing such contributions, regard will need to be had to any provisions within the lease as to when, if and how such contributions can be reflected in the rent at review. In most cases the cost of the “improvements” will be amortised over a period of time at the market yield. The period of time over which such amortisation takes place will depend on a number of factors, including:u the rent review provision;u the life of the improvement; andu the residue of the lease.
Where a landlord assumes responsibility for a tenant’s lease as an incentive to move into a new property, it is harder to analyse. While there is no doubt that this is an incentive for the tenant, it is more difficult to determine the extent to which, if any, this is reflected in rental value of the new property. D
Alternative routes ➦Peter K Brown is
Professor of Property Taxation at Liverpool John Moores University and is programme leader of their MSc Commercial Property Management and Property Development programmes
Peter Brown concludes his analysis of the way true market valuation must be tackled in the current economic downturn
Valuation
corner
p20
FR
The basic approach is to arrive at the true rental value of the property, having regard to the rent-free period.
The usual approach is to value the rental income of the property for the first term and then to amortise this value over a period of time. The yield used for the capitalisation and amortisation will be the market yield for that property, however in a recessionary market, that yield may be difficult to determine, given the lack of evidence and/or other incentives available which make analysis difficult.
The period over which the capital sum needs to be amortised will depend on a number of issues:u where the property has an upwards and downwards rent review pattern, usually the value will be spread over the period to the next rent review;u where a property has an upwards only rent review, a view must be taken as to whether the true rental value of the property will be equal to or in excess of the headline rent at the next (or future) reviews; u where the rent will be in excess of the headline rent then again the value will be amortised to the first review, whereas if the passing rent is still less than the headline rent, the value will be amortised until the rent review, at which time the headline rent is in excess of the passing rent; andu where a lease will expire and the property is still over rented, then it would be assumed that the tenant would vacate the property at that point. Again the value would be spread over that period.
REnT fREE PERiODs
In a perfect world valuers would seek to rely on rental evidence that needs no adjustment and can simply be analysed to give the unit rental price. However, in recessionary markets the availability of such evidence may be limited or simply not available. In such cases the valuer will have to analyse other rents to find the true market value of the property.
CaPiTal COnTRiBuTiOns
aCCOmmODaTiOn TakE BaCk
Where the outgoing tenant has paid a premium to an incoming tenant to take on the responsibilities of a current lease, the procedure for analysis is relatively straightforward. The value of the premium will be amortised for a period similar to that discussed for rent-free periods above.
REvERsE PREmiums
Landlords in many cases have simply
had to reduce the rent they were asking
in order to attract a tenant, but simply
reducing the rent may not be suffi cient to
attract tenants, and other incentives may
also need to be given.
The landlord may offer a rent free period
in lieu of, or as well as, reducing the
rent. The length of the period will vary
depending on the type of property,
its location, demand and the relative
bargaining strengths of each of the
parties. A rent free period covering
a number of years has caused some
questioning as to the true rental value.
The landlord may offer to pay the cost of
capital items that would normally be paid for
by the tenant, such as the fi tting out of the
unit, the carrying out of improvements, and
costs incurred in moving to the new property.
Such contributions need to examined
carefully, as the lease will often contain
provisions as to how such improvements
etc., are to be treated at rent review.
Landlords will often seek to have the value
of such improvements refl ected in the rent
at the next rent review.
Landlords may agree to take over the existing
accommodation of a tenant. The advantage
to the tenant is that the landlord becomes
responsible for the cost of the previous
accommodation and he can move quickly into
the new accommodation.
The advantage to the landlord is that the
new accommodation quickly becomes income
producing, and usually reduces outstanding
fi nance charges. The Rating (Empty) Property
Act 2007 would increase the cost of such an
incentive to the landlord.
Lease structures have become more fl exible
over recent years and tenants are giving
far more consideration to the lease terms,
particularly the following issues:
Upward only rent review clauses – where
tenants will often seek to have a rent review
clause that is based on the true rental value
of the property as at the review date. The
upwards only clause may result in a tenant
paying in excess of the true rental value of
the property if rental levels fall;
Break clauses – the current pressure is for
the tenant to be allowed to break his lease at
specifi ed times, often at a rent review;
Length of lease – substantial pressure is
being exerted for leases to be for shorter
periods (fi ve or ten years) and;
Reverse premiums – payments made by
an outgoing to an incoming tenant where the
market rent has fallen below the level of the
rent actually paid under a lease.
Next time, I will look at the means by
which such effects can be taken into account,
which will be supported by spreadsheet
models that can be downloaded from the
Institute’s website: www.irrv.net
In the fi rst of a two-part article, Peter Brown
investigates the effect of the economic
downturn on the property market
Valuation corner
p26
RENTREDUCTIONS
RENT FREE
PERIODS
CAPITAL CONTRIBUTIONS
LEASEA range of letting incentives can also be found in the market, including the following:
ACCOMMODATION
TAKE BACK
Turmoil in the fi nancial market has had
a huge impact on the general economy
and the property market since late
2007, with a substantial deterioration in
late 2008.
The commercial sector started
to feel the impact in the fi rst quarter
of 2008, just in time for the 2010
revaluation, with its 1 April 2008
antecedent valuation date. The market
clearly differs from one area to another,
and some comments may not be
appropriate for all areas.
The change in economic climate can
be seen to affect the rental market in a
number of ways:
demand is reduced, with tenants
being reluctant to move or releasing
surplus accommodation onto the
market as their business contracts;
supply will exceed demand, with the
poorer quality property suffering the
most;
a reduction in the number of
schemes being started unless the
developer has secured either a tenant
or purchaser for the property;
speculative schemes under
development may either be mothballed
pending a change in the market, or
completed in the hope of fi nding a
tenant or purchaser. The impact of the
Rating (Empty Property) Rates Act
2007 may stop developers from fully
completing schemes, so as to avoid
Completion Notices and the payment of
empty rates;
tenants have diffi culty in disposing of
surplus accommodation;
landlords will seek to let empty
property by giving concessions to
tenants so as to avoid incurring paying
the costs of keeping the property
empty, such as empty rates, insurance,
service charges, repairs etc; and
the number of transactions
decreases making it more diffi cult to
analyse the market.
FR
LEASE STRUCTURES
Benefitsbulletin
p21
FR
I have undertaken emergency planning exercises with benefits administration students on many occasions over the last 25 years using the typical examples of major system failures, an unexpected collapse of a large local company putting hundreds of workers on the unemployment register, and my particular (wishful thinking) favourite, what happens when the majority of your benefit staff win the lottery and don’t turn up for work the next day!
I recently attended a joint training event with local NHS staff on business continuity planning, but this time the subject was pandemic influenza! My office, like yours I’m sure, reverberates to the sounds of coughs and sneezes at this time of the year, which is an interesting but timely new dimension. What I hadn’t realised was the likelihood of this ‘unanticipated’ event – which is 100%. So that means that unlike the lottery win, it is going to happen.
We covered various types of influenza, bird flu, H5N1’s and all sorts of technical data about the various strains. But the scary reality was the need for government and health
authorities worldwide, as ‘Category 1’ organisations in terms of public responsibility, to prepare for when this pandemic strikes. The only tricky factor is knowing when it will hit us.
So what would you need to plan for? First, it is anticipated that the virus could strike down around 50% of the population. Your staff are likely to have children and families who will be hit too, so the additional problem is that dealing with the care of their families will prevent many of them from returning to work, so numbers could fall as low as 30%.
Second, while we may have the luxury of a proportionate reduction in customers also struck down by the illness, our colleagues in the NHS actually suffer the complete opposite effect – significantly more customers with significantly less resources.
In Herefordshire we are joined with the local NHS Service through a joint management team and chief executive. Therefore under a pandemic, there may be a need to share resources to provide essential services. It would also make life very difficult for sick benefit staff that need NHS support in all areas!
Under business continuity planning rules, during a pandemic, the services we provide would not be regarded as ‘critical’ in the same way as healthcare, which needs to provide services within 24 hours. Arguably, other than potential eviction cases, an answer within one or two days may be unnecessary. We would not even be referred to as an ‘essential service’, as the vast majority of our work would be ‘routine provider’, in which the provision of service in a couple of weeks is normally acceptable.
Third, and perhaps the most mind-blowing aspect of such a plan is the true nature of a pandemic – literally everybody can be affected. Meaning a lack of fuel when fuel stations close, a lack of train drivers, supermarkets and banks closing due to staff shortages, a shortage of police, etc. So it’s not just a housing benefit office issue, every office, shop and service will be hit similarly.
But what about antiviral treatments? Well they can help, but only if taken within 24 to 48 hours of catching the virus, and while they help to reduce the symptoms, you still get the virus and are still likely to be ill for about a week… if you are lucky!
pandemic pREssuREs
➦Dave Hendy IRRV is Benefits Manager with Herefordshire Council
If 50% of your workforce suddenly went under with a violent strain of influenza, would your benefit service be able to cope? Dave Hendy explores business continuity management to discover the answer
Fourth – just when you thought it can’t get any worse – a pandemic comes in waves, and the second wave of the virus is normally worse and more virulent then the first. So those of you who have bravely made it into work will still face that final conquest.
We listened to an emergency-planning officer whose job is to write such plans for the NHS, who told us how she had spent the last nine months dealing with these issues. Then came the moment of truth – do they work once tested? And the answer is no! Even with the best plans in the business, the bottom line is that plans are only as effective as the people who have to operate them. Staff need to be fully involved in the process from the design stage through to testing and implementation. If you don’t update them, they’re useless, and if you leave them in your office and you’re off sick, who picks up the pieces?
All this makes me feel quite sick – hope I haven’t caught the ‘man flu’! Maybe I should try and adjust my lottery win example – it looks easier! D
Most people studying for IRRV examinations are mature students. That doesn’t mean that you must be 20 years into your career
– a mature student is generally regarded as anyone over the age of 21. But generally, as a mature student, one of the main things you may worry about is how to cope with the coursework and revision as well as your office job and keeping your home life together. These are very real issues, and students need to plan their study to fit in with their lifestyles. Perhaps something else will have to go – at least for a short time.
As a student, you need to develop basic study skills, some of which you may not have used for quite some time! You need to understand how to learn, but also how to organise your time, make your own notes, read effectively, analyse information, write essays and reports, and conduct effective research – especially on the internet.
On the bright side, while you may find you need to brush up on these skills, don’t underestimate the skills you already have. For example, if you have successfully raised a family, there is a good chance that you already know how to organise your time and will be able to learn new skills quickly.
If you do have to fit your study in with family and friends, those around you may also need to come to terms with changes. This may affect relationships to some extent, but depending upon your personal circumstances, you will probably have already spoken to those likely to be affected and most people around you will want you to succeed.
Being a student may seem hard work, but it’s also very rewarding. Good luck with your studying! D
Study, particularly for a mature student, can seem daunting. Bill lovell offers some tips on how to be an effective student and how to perfect the work/home/learning balance
It would be stating the obvious to say that students study, but just what does it mean to study and what issues does it raise?
Students’
corner p22
FR
Studying is defined as the pursuit of knowledge. It is also probably the only way that you will be able to get through a course without failing. Whether you are part of a formal day-release course, distance learning or studying independently, anyone preparing to take an exam, is studying and is therefore on a course.
Those studying privately may have no alternative but to do the best they can as tutor guidance may be short, but if you are on any kind of formal course, make the most of the opportunity it gives you.
Unfortunately some students prefer to do things their own way, and this can easily lead to a fail. If you are a student on a tutored course, don’t ignore what the tutors tell you and don’t try to do an assignment or essay the night before it is due in!
The amount of time that you are allocated for a piece of work is usually the amount that the tutor or course provider thinks is adequate to make a satisfactory job of it – the amount of time that you will actually need to do it. Effective study cannot be rushed.
It is best to allocate yourself a few hours each day for each piece of work rather than try to complete everything at once. This way, you will retain more information, and be less likely to suffer from stress, fatigue and boredom!
Always remember why you are doing the course, and remind yourself what you will get out of it at the end of your studies! But most of all, remember that you are more likely to pass through good study habits!
studying for success
➦Bill Lovell is a former examiner and member of the IRRV Examinations and Assessment Board. He is a freelance local government consultant and trainer
2009
For more Information please visit:www.irrv.org.ukor call:0207 691 8987
IRRV CONFERENCES & COURSES
SPRING PRE-EXAMINATION COURSEKeele, 25 April – 1 May
MANAGEMENT COURSEKeele, 29 April – 1 May
COLLECTION & ENFORCEMENT CONFERENCE Harrogate, 2 – 3 June
WELSH CONFERENCE Llandridod Wells, 18 June
INTERNATIONAL CONFERENCE 23 – 24 June
SCOTTISH CONFERENCE Crieff, 2 – 3 September
ANNUAL CONFERENCE Bournemouth, 29 September – 2 October
AUTUMN PRE-EXAMINATION COURSE 29 October – 2 November
Benefi t Overpayments Guide 2009 UpdateAuthors: Ed Bowen IRRV and Heather Neate IRRV
The IRRV Benefi t Overpayments Guide has been written by Local Authority Offi cers who have signifi cant experience in overpayments. Ed Bowen works for the LA involved in the ‘Desert Island’ case, famous to those of us who have been involved in overpayment recovery for the last few years.
The Guide combines law and practice, including case law, benefi ts legislation, best practice and useful template forms for local authorities to use. The guide is written in such a way as to be of use to all offi cers involved in processing overpayments, dealing with appeals and recovering the debts. It would also be useful for students.
Managers will fi nd the guide of interest too. The appendices contain debt recovery policies and a particularly good Overpayments Dashboard for the monitoring and reporting of debts. Invest in developing staff knowledge, awareness and best practice by ensuring copies of this guide are available to all.
To order online please visit the IRRV website: www.irrv.org.uk or send an email to: [email protected]
Price:
£49.00 (plus £3.00 P&P)
OUTNOW!
A storm is brewingWith the culmination of severe capping limits, LIT concerns and benefit take-up issues, there are troubled times ahead for local government, says Pat Doherty
he conservatives have launched a series of proposals that are intended to improve financial accountability in central government, including redefining
the role of finance directors working within government departments.
Under the proposals, finance directors would have a new obligation to manage public spending, and they would have a dual-reporting role line to both a departmental head and a central financial management organisation.
I find this proposal interesting because the conservatives need look no further than local government if they want to see financial accountability in place in relation to finance directors. It has been around for a very long time, and is enshrined in legislation. It’s a pity it takes a politician to identify a need for this in central government when the civil service has insisted on this accountability in local government.
Local income taxIt is interesting how things change so quickly in relation to the proposal for a local income tax (LIT) in Scotland — before I wrote this article, various local government journals were reporting that the Scottish Government still intended to go ahead with plans for LIT in spite of the fact that, apparently, there was no legal basis for its introduction and HM Revenues and Customs had no powers to collect it.
But the Scottish Government has finally announced it was ditching plans to replace the council tax with LIT. Finance Secretary John Swinney told MSPs it was clear there was “no consensus” in Parliament for the measure during a Holyrood debate. “The cabinet has, therefore, decided not to introduce legislation to abolish the unfair council tax and replace it with a local income tax until after the election in 2011,” he said. It seems to me that this announcement effectively kills off any prospect for LIT. Common sense has finally prevailed - or is that politics?
Refuse tax ‘binned’The government has shelved plans allowing local authorities to impose a controversial ‘bin tax’ after councils effectively boycotted the idea. Not one of the 388 eligible English local authorities applied to join the five pilot schemes to charging households for filling their bins above a certain weight.
The Department for Environment, Food and Rural Affairs said that the scheme would not now go ahead, although the legislation was in place if local authorities wanted to impose a ‘pay-as-you-throw’ tax in future.
This is no surprise, as it was always likely to be an extremely unpopular proposal and would undoubtedly have had unwelcome environmental consequences. In any event, the idea has been widely rejected by councils, who cited technological difficulties and unpopularity among council taxpayers as the prime reasons.
Council tax benefit take-up It’s that time of the year again, with April approaching and council tax bills due to start going out, and the DWP is reminding local authorities that they have a statutory duty to promote council tax benefit, citing that the government wants to ensure, as far as possible, that people get the help with council tax that they are entitled to.
Take-up is particularly low among pensioners - around four in ten that are entitled to it are not claiming. The government
T
Doherty’s despatch
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A storm is brewing
“The manner in which inflation impacts on councils means that their ‘shopping basket’ has never mirrored the consumer price index”
The Department for Communities and Local Government refused to state at what level capping will be applied, suggesting that capping could be imposed on councils that stay insufficiently below 5%.
Early indications of the average council tax rise in 2009/10 were revealed in a Local Government Association survey of 50 councils, published on January 19. It predicted that tax would rise by an average of 3.5% – which would be the lowest increase for over a decade.
Local authorities are facing their most difficult budget pressures for many years, with reducing income from car parks, increased expenditure on “free” bus passes, the growing cost of waste disposal and reducing investment income because of low interest rates. There are other pressures too including the fact that the economic climate is likely to bring about shrinkage in the council tax base and a decline in rates of collection, as many taxpayers face difficult times.
The manner in which inflation impacts on councils means that their “shopping basket” has never mirrored the consumer price index.
At the same time as facing these budgetary pressures, councils are conscious of the impact that council tax rises would have on their taxpayers in the current economic climate. The real challenge will be to drive out efficiency savings in order to minimise the far less palatable option of cuts in services and to keep tax rises as low as possible so as not to face capping. D
➦Pat Doherty IRRV CPFA is
an independent consultant and IRRV Past President. If you
wish to comment on the article please email him at: pkd@
pkdconsultancy.co.uk
is particularly keen to ensure that this group of customers are aware of their entitlement and are encouraged to claim it.
Many of those with small savings will be hit by the reduction in interest rates. The best thing that the government could do for them would be to review the tariff income which assumes, for those with more than £6,000 an average interest rate of around 7.5%. I suspect though that “chance would be a fine thing”.
Tough capping limitsBy the time this article appears in Insight, the capping limits will be known, but at the time of writing it looks as though councils will be facing the most severe capping round yet as ministers confirmed next year’s local government finance settlement.
Some local authorities are proposing council tax freezes for 2009/10, which will no doubt help their taxpayers in the present economic climate, and in Scotland, councils are likely to be asked to agree to a second year of zero increases.
The second year of the government’s three-year funding settlement in England gives councils a funding increase of 4.2%.The Minister has warned that he would have no compunction in using his capping powers should the scale of council tax increases warrant it. He said: “I expect next year’s average council tax rise to be substantially below 5%. I will not hesitate to help people by capping any excessive increase if I have to”.
Doherty’s despatch
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Management
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34 Management34 Management
A date for the diaryhere are just four essential things that you must do each week. The fi rst is to thank everyone who works for you. You have to fi nd something that each person has done well and tell them. Yes, even
the people who you don’t really like, and the ones who are mediocre. If you can’t think of one good thing they’ve done then you don’t know enough about what is going on.
Am I saying you can’t thank someone twice in a week? No. Am I saying that when it is Friday and the week is nearly up, you must scrape the barrel for something? No. What I am saying is that thanking is free and is a vital part of motivation. If someone who works for you has gone a month without being thanked, then you need to do some thinking and fi nd something to thank them for!
It has to be something genuine and something signifi cant. And you must tell them what they did that was good so it’s based on their performance. I never said that being a leader was easy! But after a while you’ll get into the habit and it will get easier, and of course, you will enjoy it.
The second thing you must do every week is have a team meeting. People often resist these.
They give reasons such as logistical diffi culties, diaries, “we all see each other all the time anyway”, etc, but I don’t think those are the real objections. I think that maybe it’s a fear of being ganged-up on. If you’re going to establish yourself as the leader of your little pack, and if they are going to feel like a team, you must physically
meet in a room together. Just half an hour would be enough, and certainly no longer than an hour, otherwise it will get boring.
To an extent, it doesn’t matter what you talk about, although I suggest that each person gives a fi ve minute summary of what they are working on, any achievements, progress or problems and any signifi cant events coming up which others may be interested in. You’ll be surprised at how often people can help each other, or how often they fi nd
Tinformation about events and projects useful. You can’t be a leader unless they are a team. Give a quick outline of what you are working on too – this is a chance to show that you don’t just sit around in meetings all day and that you are there to help them to work effectively.
An additional benefi t of this meeting is that you can maintain a grip on everything that is happening. They have to report progress so you’ll be able to determine the state of everything and you can either help them or push them if something important is lagging behind. And, by getting these progress updates at the weekly meeting, you can establish your authority.
I like Wednesdays for these meetings. But in any case it should be a regular event, and it should be considered a major crime to miss it. The meeting has to be weekly. Fortnightly is slipping, and monthly is defi nitely not often enough. Trust me, try it, and you’ll wonder how you ever lived without it.
Next time: the other two weekly essentials.
“Saying thank you is free and is a vital part of motivation”
Chris Croft is a management trainer. There are various free resources at www.chriscrofttraining.co.uk and you can subscribe to his free monthly email at www.free-management-tips.co.uk
Teammeeting
Chris Croft continues his series on what good managers need to do everyday, week, month and year in order to lead as well as manage. Here, he
focuses on tasks for the week
2nd
Annual obligations
elcome to the fifth and final instalment in a series of articles on leadership. As we saw last time, there are certain
things that a good manager needs to do every month in order to be a leader as well as a manager. This time the subject is what managers should be doing once a year.
There are six things...Number one: do an appraisal for every person who works for you, without fail. Appraisals, if done properly, are the answer to many problems, for example “I think I’m good but my boss doesn’t, and suddenly they tell me and it’s a big shock”, “I worry about my performance, not realising that my boss thinks it’s fine”, and “I don’t know where it’s all going”, “It’s too hard for me”, “I’m bored” or “I have (unfounded) fears about what’s coming up soon”, etc. So do an appraisal, talk about the year that’s gone by and the year to come, get your staff to say what they think and want first, and cover both the good and the bad areas to work on. Be supportive rather than critical, and ask them about you as a boss – what can you do better?
Wslip by, and you need an annual situation review. Only you can steer where your life goes – and most people just drift!
Number five: go on a training course and learn something new. Even if you only pick up one or two things in a day, they could pay back many times over the coming years. It’s too hard to think of every clever thing yourself, based on no input, and anyway, why reinvent the wheel? Training courses are a chance to be fed the best stuff, so go on one every year.
Number six: read a book on something related to your work at least once a year. It could be anything to do with management or leadership, negotiating, understanding difficult people, strategy, whatever you are interested in or feel you need. The knowledge of the world is written in books, and amazingly most managers never read about management! Have you read The Goal, The Responsibility Virus, The Inner Game of Work, The Seven Habits, Born to Win, or The Mind of the Strategist? I hope you
enjoy them all!
Onwards and upwards!If you have missed any of the previous articles and want to know what you should be doing every day, week and month, contact Insight’s editorial team or email Chris directly. D
In the last of Chris Croft’s leadership in a changing environment series, the yearly tasks of an effective manager come into play
Number two: address the troops. If you have managers or supervisors who have teams, then once a year you need to get the whole lot together in one room and talk about the year that’s gone and the year that’s to come. You must establish your authority as leader, and explain the vision. Don’t be nervous, just be yourself, be as honest as you can – some of them will think it’s propaganda, but the good ones will enjoy it!
Number three: do between a day and a week of ‘back to the floor’. Be on reception, or out with the front line staff, doing their job with them. You’ll probably be bad at it, and they may well laugh at you, but they’ll respect you for doing it, and you’ll learn a lot, not just about that area, but about the systems that don’t work, and how problems can happen without you knowing about them. And it’s a chance for you to show your human side and talk about the things you are trying to achieve. But remember, do it when it suits you and when everything else is reasonably okay. You are in control!
Number four: review your personal goals and life quality. Are you enjoying your work? What’s your stress level? What are your long-term plans? And what are you doing to move towards them? The years can
➦Chris Croft is a management trainer who runs courses for
groups of 6-16 people. There are various free
resources at: www.chriscrofttraining.co.uk and you can
subscribe to his free monthly email at:
www.free-management-tips.
co.uk.
➦See Chris talking, and try some of his online time management course,or buy it, at: www.online-time-management.co.uk.
final
instalment!
elcome to the fourth in a series of articles on leadership. As we saw in September’s article, there are certain things that a good manager
needs to do every day and week in order to be an effi cient leader as well as manager. This time we focus on the monthly tasks.
There are just three things that you need to do on an approximate monthly basis.
The fi rst is to monitor the progress of projects by having a monthly meeting, probably based around the Gantt chart. If you don’t know what a Gantt chart is then you should seriously consider coming on a project management course! This meeting will allow you to maintain a grip of the project and make sure it doesn’t slip too much, without being detected and revised.
The second is to sit with each person who works for you and review his or her progress against their set goals at their annual appraisal (I presume you have these? I certainly hope so!) Appraisals are often an annual form-fi lling exercise that gets forgotten until the next one, a year later. But ideally you should be on the case, reminding, helping and enforcing the changes in behaviour and skills that the person committed to at his or her appraisal. Keep a folder for each person, or just one for everyone, called ‘Appraisal Progress Log’ and open it each month to review and make notes of progress and promises… there is no escape!
The third and fi nal monthly task only takes fi ve minutes and can be probably be done in your head when you’re stuck in traffi c, or on your way to the toilet – but that doesn’t mean it’s not important! You need to have a ‘motivation review’ of everyone who works for you. Let’s think about Miles fi rst. Is he happy? Does he have a challenge to work on that will give him the satisfaction of achievement when he succeeds? Does he need any help with it? Does he need any training, or coaching? Does he have ownership of anything that he can say is his? Has he received any recognition recently? Is he learning anything at the moment?
Motivation reviews are vital. It is easy to start giving out tasks, monitoring tasks, and basically becoming controlled by tasks, but this cuts the cake the other way, and starts with the people. A much better question is what task can I give Miles that will stretch him? Of course you still need to do the tasks, but to think about the people every now and then has to be worth the time.
Again, the objective is to be ahead of the game. Any manager can react, and become a clever trouble-shooter. But leaders don’t react – they are a step ahead, planning and controlling events so that their vision comes to pass.
And that’s it for your monthly tasks. Are they too much to ask? Are you going to do them?
Next time we will look at the fi nal part in this series – what the ideal manager or leader should be doing once a year. ■
If you have missed any of the previous articles and want to know what you should be doing every day and week, contact Insight’s editorial team or email Chris.
Chris Croft is a management trainer who runs courses for groups of 6-16 people. There are various free resources at: www.chriscrofttraining.co.uk and you can subscribe to his free monthly email at: www.free-management-tips.co.uk.
See Chris talking and try some of his online time management course (also available for purchase) at: www.online-time-management.co.uk.
There are three monthly tasks that a manager should do to remain a step ahead of the team and demonstrate effi cient leadership, says Chris Croft
W Scheduled to perfection
44 Management 11/084th 033Insight 33Management
A mechanical masterpiece
elcome to the third of a series of articles on leadership. As we saw last time, there are essential things that a good manager should do
in order to lead as well as manage. Two of which (thanking everyone one at a time, and holding a weekly team meeting) were focused on in May’s Insight. Now for the other two.
The third essential is to coach someone who works for you. This is vital, because your main objective is to build a machine of people... If you think about it, serving customers each week is what you’re there for, but if you’re going to leave a long-term mark you have to do more than just churn out processes every week. Therefore, your job is to improve the way the system works, which is through people – so you have to build a machine of people. You have to recruit them, train them, motivate them, develop them, and shape it all to ensure the system works and will continue to work, even without you.
In order to build your machine of people, each person must fi rst be developed. Sending them on training courses is great, but it’s not enough. A good boss is a mentor for his or her people, supporting and enforcing, asking questions like; how are you getting on with that new thing you learned on that course? Why haven’t you started it yet? Do you want any help with it?
Good bosses build people up rather than bring them down, and this involves coaching.
So, who have you coached this week? And what is your plan for next week?
The fourth and fi nal weekly task is time planning. We have already examined the daily task of writing a list, but in order to see the bigger picture it is necessary to look at your ‘master list’ every week and think about which items need attention in the coming week.
Your master list will include projects, things you have decided to do, or been asked to do, things you are not sure how to do, things you know you are going to do but haven’t decided when, etc. It might have 20 or even 50 items on it. It might be on paper, in a Word document, within a personal organiser, or even on your phone.
Without this master list you will have no material for planning, you’ll be stressed and out of control, and will end up being reactive, lurching from crisis to crisis.
It will only take you 30 minutes to write it the fi rst time, and then about fi ve minutes per week to have a quick look at it and decide which tasks can be left a bit longer or deleted, which are getting urgent
and which require more time. Then move parts of these tasks into your diary for the coming week, for example, “I will make a start on that one for a couple of hours on Tuesday, I’ll pencil in 2-4”.
So that’s your fourth weekly task – having a quick look at your master list and plan bits of it into your diary for the coming week. Easy!
Next time we will look at what the effective manager/leader does each month. ■
If you missed any of the previous articles and want to fi nd out what you should be doing each day, contact Insight’s editorial team, or email me.
Chris Croft is a management trainer who runs courses for groups of 6-16 people. There are various free resources at: www.chriscrofttraining.co.uk and you can subscribe to his free monthly email at: www.free-management-tips.co.uk.
See Chris talking and try some of his online time management course (also available to purchase) at www.online-time-management.co.uk.
A system is only as effi cient as the people who operate it and building up a successful team requires precision and logical thinking, says Chris Croft
34 Management34 Management
A date for the diaryhere are just four essential things that you must do each week. The fi rst is to thank everyone who works for you. You have to fi nd something that each person has done well and tell them. Yes, even
the people who you don’t really like, and the ones who are mediocre. If you can’t think of one good thing they’ve done then you don’t know enough about what is going on.
Am I saying you can’t thank someone twice in a week? No. Am I saying that when it is Friday and the week is nearly up, you must scrape the barrel for something? No. What I am saying is that thanking is free and is a vital part of motivation. If someone who works for you has gone a month without being thanked, then you need to do some thinking and fi nd something to thank them for!
It has to be something genuine and something signifi cant. And you must tell them what they did that was good so it’s based on their performance. I never said that being a leader was easy! But after a while you’ll get into the habit and it will get easier, and of course, you will enjoy it.
The second thing you must do every week is have a team meeting. People often resist these.
They give reasons such as logistical diffi culties, diaries, “we all see each other all the time anyway”, etc, but I don’t think those are the real objections. I think that maybe it’s a fear of being ganged-up on. If you’re going to establish yourself as the leader of your little pack, and if they are going to feel like a team, you must physically
meet in a room together. Just half an hour would be enough, and certainly no longer than an hour, otherwise it will get boring.
To an extent, it doesn’t matter what you talk about, although I suggest that each person gives a fi ve minute summary of what they are working on, any achievements, progress or problems and any signifi cant events coming up which others may be interested in. You’ll be surprised at how often people can help each other, or how often they fi nd
Tinformation about events and projects useful. You can’t be a leader unless they are a team. Give a quick outline of what you are working on too – this is a chance to show that you don’t just sit around in meetings all day and that you are there to help them to work effectively.
An additional benefi t of this meeting is that you can maintain a grip on everything that is happening. They have to report progress so you’ll be able to determine the state of everything and you can either help them or push them if something important is lagging behind. And, by getting these progress updates at the weekly meeting, you can establish your authority.
I like Wednesdays for these meetings. But in any case it should be a regular event, and it should be considered a major crime to miss it. The meeting has to be weekly. Fortnightly is slipping, and monthly is defi nitely not often enough. Trust me, try it, and you’ll wonder how you ever lived without it.
Next time: the other two weekly essentials.
“Saying thank you is free and is a vital part of motivation”
Chris Croft is a management trainer. There are various free resources at www.chriscrofttraining.co.uk and you can subscribe to his free monthly email at www.free-management-tips.co.uk
Teammeeting
Chris Croft continues his series on what good managers need to do everyday, week, month and year in order to lead as well as manage. Here, he
focuses on tasks for the week
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“Your job is to improve the way the system works, which is through people – you have to build a machine of people”
3rd
f you’re a manager, you’re also a leader. � e two overlap, but there are two main diff erences between leadership and management: leaders have to provide a vision of where they’re going (tricky if the boss or the company tells
them and/or if their part of the organisation has to fi t into a larger whole) and leaders have to motivate their people, possibly even inspire them, which is also tricky if it’s routine or unpleasant work that has to be done. So there it is, vision and motivation as well as the day job.
But what does this mean exactly? What should managers actually do in order to achieve these things? And what about management style? Can they just be themselves? And if not, what sort of person should they be?
� is column will explore the answer to some of these questions over the coming months. To start with, I’ll list the three things
that a manager should do every day in order to be an excellent manager, and also a leader: • � e fi rst thing is to spend at least 30 minutes doing management by walking about. � e manager who is also a leader will know what’s going on and have a close working relationship with his or her team – not just send emails from behind his or her desk. � is means doing some walking around, ideally covering the whole area over the day. If there are several sites, then the manager might visit a diff erent one each day. Managers need to get comfortable talking with all types of people, even the ones they don’t like! It’s an opportunity to take the temperature of things, to fi nd out what’s working and what isn’t, and to put across messages about what you’re doing and why. I know this is a sizeable investment of time (and the fi rst thing to go when you’re under pressure) but you MUST do it. • � e second daily requirement is to spend at least 30 minutes thinking! Many managers never get a chance to think (except when they are in the car, toilet, or in a meeting and are supposed to be listening!). Ideally, they would write a 30 minute appointment with themselves in their diary and keep to it. During this time, they don’t have to just sit there meditating; they could be investigating a problem, reorganising some information, learning about something – anything that you could call ‘getting ahead of the game time’. It’s too easy to be reactive as a manager and never get ahead. � is will be the best half hour of your day, and will prevent that feeling of ‘I’ve been rushing around all day but achieved nothing. Where did all the time go?’• � e third daily requirement is much quicker – it only takes fi ve minutes each day. And this is to write a jobs-to-do list at the end of each day. It can be on a piece
of paper, in a personal organiser, in Outlook, whatever you like, but it’s vital that, every day, you have a think about what you didn’t get a chance to
do and what you need to do tomorrow, and write it all down on this list. It will reduce your stress by giving you a feeling of control and it will encourage you to get things done before they become too urgent, giving you a chance to be proactive rather than having to react all the time.
Do you do these three things every day? Could you? How about trying them?
My next column will cover what managers/leaders need to do every week, every month and once a year! ■
I
Chris Croft is a Management Trainer. There are various free resources at www.chriscrofttraining.co.uk and you can subscribe to his free monthly email at www.free-management-tips.co.uk
“Managers need to get comfortable talking with all types of people, even the ones they don’t like”
Three wise tipsThey are neither gold, frankincense nor myrrh, but Chris Croft’s three hints are a great gift for any
manager wondering what they should do to improve their day-to-day leadership skills
17Insight
1st
y last article, in the December issue of Insight, gave a general overview of the Local Government Ombudsman’s work in relation to local taxation in May 2006. So what has happened since then? Four public reports on council tax have been issued. Two of them, focusing on bankruptcy, were discussed in December. The other two concern councils’ discretion.
The first (05C03367) involved Redcar and Cleveland Borough Council,which set the council tax empty property discount at 10%. The complainants felt that due to their circumstances they had good reason to receive a larger reduction, but the council refused, saying that the decision had been set at policy level and did not allow for any individual discretion.
The Ombudsman noted that the council had power, under Section 13A of the Local Government Finance Act 1992, to reduce an individual’s liability. And by refusing to consider any individual cases
had fettered its discretion. She concluded that the council must consider and reach a decision on the complainant’s request and establish internal arrangements for how such requests would be considered in the future. But she also said that the council was free to reach any decision that it considered fit on any request, as long as the decision was reached properly.
The second report (05A17099) concerned Brent Council, which wrongly awarded a 50% discount to the complainant. On discovering the error it issued him with a large retrospective bill. He was unable to meet the proposed payment arrangements, and the council took recovery action against him. The
Ombudsman found fault with Brent for failing to consider its own anti-poverty strategy when proposing recovery arrangements, and failing to enquire into the complainant’s means after he accepted responsibility for making repayments. The council had already written off some of the debt and made a suitable arrangement, so no further remedy was proposed.
It seems that some councils are not aware of the Redcar report and its implications, as in the last two years a small number of similar complaints have been received. As long as the council follows a policy to consider such applications and makes reasonable and consistent decisions, the Ombudsman is unlikely to criticise them.
➦Andrew Hobley is a Senior Investigator
with the LocalGovernment Ombudsman
Each year we uphold a small number of complaints about debts that have been collected from vulnerable customers. One London borough had a policy of collecting debts within the current financial year, regardless of the debt size, the reason for its accrual or the debtor’s ability to pay. It seems that enthusiasm to collect a debt often overrides proper application of a council’s policies and the use of an officer’s discretion.
Of the unreported cases, about 30% concerned delays in dealing with correspondence about liability or discount changes, and half of these result in unnecessary recovery action being taken. Another 10% involved problems in making payments or receiving refunds. In most cases the delays or problems persisted despite repeated contact from the customers. These difficulties should be resolved before they come to our attention.
Next time, I will look in more detail at unreported cases.
Details of issued reports can be found at: www.lgo.org.uk. D
Andrew Hobley continues his series looking at the latest complaints and remedies from the Local Government Ombudsman’s Office, this month focusing on unjustified enforcement
“It seems that enthusiasm to collect a debt often overrides proper application of a council’s policies and the use of an officer’s discretion”
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usiness process re-engineering and software absorbs millions of pounds worth of public service budgets every year. While the
streamlining and automation of services will inevitably enhance local authorities, the process requires resources that already pressurised departments cannot always cope with. Is now the right time for innovation? And how can local authorities achieve more for less?
Chief Executive of Northgate Public Services, David Meaden believes that service providers which offer expert advice and consultancy to dealing with larger business problems as well as provide the technology to aid or replace existing systems, are in the perfect position to help local authorities embrace their challenge. “The challenge in today’s climate is for public services to understand that they don’t have to compromise by going back to something that’s just cheaper for them,” David explains. “It’s about delivering something that’s more cost effective but still focused on a better outcome to citizens.”
Northgate is a market leader, providing specialist software, outsourcing and IT services to a wide range of public bodies. It currently supplies software to around 95% of local authorities, which need specific systems to aid the administration of revenues and benefits, to the tune of around £12bn. But what makes Northgate so attractive? The key to service delivery, particularly within business process reengineering and software development, is a good understanding of the targeted market, and therefore a successful provider will address the needs of the customer and in turn, its clients, David explains.
Traditionally, legislative programmes within local government allowed smaller, niche companies to excel in the market, but the industry is changing. Recent acquisitions and mergers have seen suppliers become fewer and larger. But David believes that overall, this has helped the industry. “At times like this, there is definitely a flight to quality. There will be fewer suppliers but not necessarily fewer products,” he says. Clients want to see quality and feel that their investment in a product is safe, “which is why it’s not just about products but about the overall service”. But the challenge for the remaining long-term industry players is to embrace the opportunity to innovate with customers in closer working relationships, he notes.
Northgate Public Services is a hugely successful player in service transformation – in the financial year 2007/8 its divisional operating profit was £23m (up 11% year-on-year), and the company therefore
In the business
but also encourages them to think about wider business and infrastructure issues, and helps them to adopt new approaches to dealing with them. For example, annual reviews of single person discount have already netted local authorities £1m in savings.
Recent acquisitions of leading software companies have caused some concern to the public sector. Less competition among suppliers has left the consumer with less choice. But how does this affect the industry? David believes that, on the whole, aggregation and acquisition strengthens business. Take the highly publicised Northgate acquisition of Anite Public Sector Holdings Ltd last November, for example – for effective growth and improved service, you must enhance existing bases. “It’s not about lessening the choice in the market, it’s about improving the quality to service and product provision,” David explains. “Our acquisitions are additions to the portfolio – if something can add to Northgate’s capability and add value to our clients then it’s beneficial.”
The future is uncertain, not least for local authorities. Effective software is vital but in the current financial climate, authorities will need to consider business process re-engineering and increasingly rely on each other and not just reliable technology – through partnership working and data sharing, authorities must now draw upon the strengths and learn from the weaknesses of other organisations. The technology services and software industry is a key part of this future, helping to build more a efficient service. D
certainly has the resources and funding streams in place to continue innovating new ideas and products, even within the current financial climate. But keeping up with demand and expectation is increasingly important. So, as budgets grow tighter, what will local authorities be looking for in service providers?
An efficient and streamlined system is crucial within the complexities of local government service delivery, so looking to the future, “there will clearly be a move towards integration, data sharing and the automation of activity,” says David. “Northgate needs to produce software that does 90% of the work in 50% of the time, and those development methodologies are reflected in the time right now.” The company embraces this challenge by not only delivering effective software products to its clients,
David Meaden of Northgate Public Services speaks to Insight about how, in the current climate, local authorities should adapt their working practice and embrace new technology
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“At times like this, there is definitely a flight to quality. There will be fewer suppliers but not necessarily fewer products”
and
Once upon a time
Times gone by
ompared with today’s technology, the telephone systems from my day are a bit archaic. The chief accountant, however, always had his own system of internal communication,
presumably borne out of his army experience of the morse code.
There were 10 of us in the main office, which consisted of a few ex-military style metal desks, with the chief acting as goal-keeper in his partitioned (and insulated) office behind us – his supervision was not impaired though since he had a window overlooking the “team”. Each of us were given a list of ‘morse’ codes that would be used when the chief summoned one of his staff to his office. The trouble was that because hardly any of us could remember them, we had to tape them to our metal pull-out trays. So when the buzzer signalled ‘dash dash dot dot’ or ‘dot dash dash dot’ there would be a clang of trays being pulled out before we could see who was in the firing line! It was cheap, effective and borne out of necessity, but would we tolerate it these days?
Back to the Hollerith system, of punched cards, which I mentioned in my December 2008 Insight article. Apparently, there had been a bit of a technological advance involving ICT (International Computers and Tabulators) whereby different applications could be programmed manually by those skilful enough
out they didn’t work and have another go. I left that authority after five years and later learned that Ernie “Plug” had retired shortly afterwards on ill-health grounds. I can only hazard a guess at what brought that on!
My career had moved on quite a bit by the time I got involved in rating again. I had gained the IMTA qualification and was now working as an auditor. It was the late 1960s and, for my sins, I was charged with undertaking an audit of the rating section. The previous incumbent of the chief rating officer’s post left after he nearly drove himself to an early grave, working every hour that God sent and a few extra, trying to launch a joint user arrangement with a neighbouring authority to transfer the Hollerith based system (yes, they were still very popular in those days) to a proper mainframe computer. The office was, to say the least, not running as efficiently as it should have been! Backlogs were building up and staff had lost their sense of direction – in short, it was a shambles.
My report went to the chief auditor, who, realising the seriousness of the situation, promptly passed it to the borough Treasurer.
I had naively told him that given six months I could turn the place round, which is exactly what I was asked to do – with a few increments on my salary of course. By lunchtime, I was appointed! D
From technology to procedure, things have certainly changed in local government. Mike Commins continues his nostalgic look at the past
“It was cheap, effective and borne out of necessity, but would we tolerate it these days?”
to undertake such a daunting task. Enter Ernie “Plug” as he was affectionately known, a former sundry debt officer who had been promoted to chief establishment officer and given special responsibility to install the Hollerith.
Full of enthusiasm at his recent promotion, Ernie proceeded to apply his (somewhat limited) talents to re-programming the Hollerith machine. Now anyone who has had half a go at computer programming will know its traumas. It’s tough enough using BASIC (beginners all-purpose something or other!) and those who have tried Machine Code will be aware of the sort of problems it poses. Ernie’s challenge was to move into programming at a much lower level than Machine Code – everything was done using a “plug board” – hence his nickname. He had a two foot square card with symmetrical holes all over it, into which scores of jack plugs connected by pieces of cable were inserted, presumably to transfer power around the board. Those of you who are aware that the basic principle upon which a computer works is based on a combination of ‘0s’ and ‘1s’ will have a head start in understanding what Ernie was up to, but to most of us it appeared like a labyrinth of wires that didn’t conform to any pattern at all.
Ernie would spend hours of his (and the council’s) time plugging these boards, only to test them on the machine, find
➦Mike Commins CPFA IRRV is Treasurer
of the IRRV Lancashire and
Cheshire Association
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Come April, revenues and benefits teams at unifying councils will have much work on their hands to streamline and implement new technology, says Mel Poluck
s the 1 April deadline looms, preparations for local government unification are almost over, but the change will not be easy.
While the transition has nearly been realised, work to converge operations at councils in Bedfordshire, Chester, Cornwall, County Durham, Northumberland, Shropshire and Wiltshire, is likely to go on beyond the deadline, particularly on the IT front.
Reorganisation is nothing new. In the 1990s, 46 unitary councils were created in England, but this is gargantuan: 44 councils will be boiled down to nine, bringing annual estimated savings to over £100m, which the government plans to use to improve service.
The Gordian knot of organisational culture, process and IT that will ensue after six councils streamline their services into delivery by one, is something no-one will be looking forward to untangling. For revenues and benefit professionals, restructure means updating databases with thousands of new property details.
For IT, there remains the issue of bringing together disparate systems. Revenues and benefits rely on a mix of document management systems, scanning and indexing technology, and customer services software. But new unitary councils will need to show that residents’ services stem from a single organisation, even if this is not the case. “On 1 April we won’t have one system,” says Ian Ferguson, Head of Revenues and Benefits at Derwentside District Council in County Durham. Could new technology ease the pain? “No – but it can once technology has been bought and you are over conversion issues.”
AOnce unified, Derwentside will grow from
60 members of staff to 310; from 42,000 properties to 220,000; and from 10,500 benefits claimants to 57,000. Its revenues and benefits department will form part of the fifth largest in the country. “We’re talking about a whole new organisation,” he says.
This will impact the distribution of the annual council tax bill – which will need to be sent to five times the amount of Derwentside’s properties.
More contentiously, the swelling of numbers at these councils will inevitably squeeze out some jobs. The merger will create two excess heads of revenues and benefits in Durham County Council, for example.
One clear advantage is that councils will be forced to make processes slicker. Ferguson agrees that the improvement of skills, as employees from smaller councils are presented with opportunities to learn from sister councils, will prove a major benefit.
Then there is the issue of condensing council accommodation, although the sale of council buildings will bring about a timely cash injection. Moving staff to other offices is a disruptive job, not least in terms of shifting IT hardware. Come April, when the majority of staff move to Durham’s county hall, employees who once had a 10 minute walk to work may end up with a journey several times as long. And the same goes for residents travelling to council offices in a county whose population is widely dispersed. According to Ferguson, one of the problems will be the loss of the “local” feel. “Residents of Stanley, for example, come to the council offices when they go to do their shopping,” Ferguson explains.
unitary issues
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He highlights that the way the seven councils operate their customer service function varies greatly. While some offer a multi-channel approach for residents to contact their council, smaller district councils still only offer the face-to-face method. When it comes to paying council tax online however, until fully converged systems are implemented, users will be redirected to a single council webpage.
Many will welcome the opportunity for the increased mobile and home working the restructure poses. While this has already begun at some of Durham’s councils, none of Cornwall’s merging councils have remote working up and running, so going down this route (which the council plans to do) would call for a large investment in devices and infrastructure.
Revenues and benefits consultant Simon Bailey suggests that the use of “thin client” computing to enable mobile and remote working may present an opportunity to unifying councils. This is a ‘server-centric’ model of computing designed to allow data to be processed on a network server. A single PC can power between five and 700 thin clients. Many thin client devices run web browsers or remote desktop software, the model allows large organisations to maximize the number of workstations they can buy on a budget. Bailey does point out, however, that this model may not work well for scanning and indexing.
Councils already participating in shared service agreements can feel comforted that unitary transition of people and processes is likely to be easier and cheaper thanks to their existing joint IT systems. Shared services aim to deliver efficiencies by consolidating services. Councils which form unitary bodies with shared services in place may have a head start.
made the unitary transition in the 1990s, it could take around ten.
The opportunities for smaller councils are enormous. “Unification gives us a bigger voice,” says Read. “We will be among the top five biggest departments in the country, which gives us a bigger say in how revenues and benefits is run.” In many cases, the streamlining of IT will go on the backburner to be dealt with after April, which revenues and benefits consultant Simon Horsington describes as a “lower risk route”. So far, Staffordshire is the only group to have already implemented a common IT platform.
The scenario of myriad systems won’t continue for long as all councils “will be under pressure to deliver savings,” he says. “The real issue will be the speed and sustainability of savings”, which will be no easy task.Revenues and benefits at unifying councils also have much work on their hands. Times local government processes by five, and things become complex, add the effect of a recession, and the picture becomes even more so.
But many see the changes as the best opportunity for improvement in years. “It’s a fantastic challenge, and a chance for us to deliver a first class service to the whole county,” concludes Restormel’s Mark Read. D
At Restormel Borough Council, Mark Read – soon-to-be Head of Revenues at Cornwall County Council – and his team are working on applying a unique reference number for benefits claimants with the help of a software provider. Previously there were overlapping reference numbers from customers residing in what will soon become different council areas, and it is vital that no two numbers are the same so residents can continue to pay their own council tax and not someone else’s!
Restormel is one of six councils that will comprise Cornwall County Council. From an IT perspective, somewhat unusually, five out of six of them use the same system, making conversion much easier. “From a customer point of view it’s about delivering the same level of service across the county,” says Read. “We all have different procedures, but regardless of where you live you should be treated the same.”
In amalgamating several councils, says Read, you are bound to create efficiencies and cost savings. While these wouldn’t become apparent in the first year, he predicts that by year two they could amount to thousands of pounds but that it would take up to three years for staff, IT and new ways of working to become fully embedded. According to one council which
➦Mel Poluck is a freelance journalist
specialising in IT and local government
issues. Contact her at: mel_poluck@
yahoo.co.uk
unitary“The Gordian knot of organisational culture, process and IT that will ensue after six councils streamline their services into delivery by one, is something no-one will be looking forward to untangling”
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Paul Russell’s expert eye is drawn to the confusion surrounding the amount that should be included (or proved) as a debt when a ratepayer goes into insolvency
find it bewildering that many local authorities apportion rate (and council tax) liabilities as at the date of a winding-up order, administration, bankruptcy etc., and prove debt on the basis of a daily apportionment. This
practice has been in place for many years, even prior to 1990, despite it being wrong in law: many insolvency practitioners do not seem to know this area of law either!
Unless there has been a change of occupier (if occupied) or owner (if void), or the property becomes void on the critical day, it is not a daily apportionment which determines what is due or what is proved as a debt. It is the amounts which are payable in accordance with the collection and enforcement regulations that are relevant.
Some readers may well be asking what the importance is? It is vital that local authorities act properly within the law, not just in properly claiming that which is due by that authority as
I
withinWorking
a creditor in the insolvency, but also to establish whether sums may rank as expenses of the insolvency, where they stand a better chance of being paid. In the case of bankruptcies, the undischarged bankrupt may well still be liable to pay subsequent instalments.
Back in the General Rate days, rates were due in full once they were set by the local authority concerned, and advertised (Davies v Burrell (1851) (10C.B.821) and Thompson v Beckenham Borough Rating Authority (1947) (2 All E.R.274)).
In Re Wearmouth Crown Glass Company (ChD) 1882 (19.Ch.D.640) it was held that no apportionment was to be made when a company went into liquidation. In addition, the court held that there was no change of occupier/ratepayer on the liquidation.
In Re Blazer Fire Lighter Ltd (1895) 1 Ch 402 the liquidator had closed the business and done nothing on the premises except install a caretaker to protect them from vandalism. That was sufficient to continue the company in rateable occupation. Therefore the rates falling due during the liquidation were an expense of the liquidation. So no apportionment arose unless there was a change in ratepayer, when a daily apportionment was appropriate.
From 1990, the system for non-domestic rate changed matters significantly as did council tax in 1993. For the purpose of the article, the treatment of both forms of tax is similar.
In Re Nolton Business Centres Ltd (Eliades v The Common Council of the City of London) (Ch.D) 1996, although it was accepted that while the amount payable was calculated on a daily basis, it was the payments required to be made under the Non Domestic Rating (Local Lists)(Collection and Enforcement) Regulations
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“Apportioning to the date of an insolvency commencement is both inappropriate and unlawful”
1989 (SI 1992/1058) which were relevant. In that case, it was held that the instalments of rates which remained payable after the date of the liquidation were expenses of the liquidator.
In Re Toshoku Finance (UK) Plc (HL) 2002, the House of Lords was concerned with Corporation Tax liabilities, but much reference was made to rating liabilities and it was again confirmed that the amounts falling due during the liquidation were expenses of the liquidator.
So far as old style company administrations were concerned, rates accruing on premises occupied by a company were held not payable as an expense of the administration: (Centre Reinsurance International Co v Freakley [2006] 1 WLR 2863, etc). However, in Trident Fashions plc; Exeter City Council v Bairstow and others (ChD) 2007 the same circumstances as in Toshoku and etc., above was applied to the new style company administration introduced in September 2003 as a result of changes made by the Enterprise Act 2002.
So what amount should be proved in an insolvency, which thus becomes an ordinary debt ranking for any potential dividend between all unsecured creditors? I like to refer to this amount as the current indebtedness as at the critical date.
The critical date is the date of a bankruptcy or winding up order, or the date on which administrators are appointed. The current indebtedness is the amount actually due and payable on the critical date.
So, if the ratepayer or taxpayer is up-to-date with their 10 monthly instalments, there is no current indebtedness and nothing to prove in the insolvency.
as at the appropriate date. If the full sum for that financial year has become due as a result of non-compliance with a reminder notice, i.e. payment not received with seven days of issue, etc., then the full balance currently due is the appropriate sum.
The situation is different with bankruptcies and council tax liabilities. If the taxpayer is declared bankrupt while future instalments remain payable, if the proof of debt is just one instalment, or if there is no proof because payments are up-to-date, the payments which fall due after the bankruptcy remain payable personally by that taxpayer.
Many local authorities clearly apply a degree of flexibility when payments have fallen into arrears and are brought up-to-date following reminder notices. If the payments are made more than seven days after the issue of the reminder notices, it is popular to allow instalment payments to continue. However, when considering what is due and by whom in an insolvency, it is the legal position which applies, i.e. whether the payment was received within the first seven days or not.
In practical terms, any amount on an account which is proved in an insolvency is best written off at that time. Any subsequent distribution can be the subject of a re-raising of equivalent debit.
By applying this basis, local authorities will have a robust process, allowing them to enforce payment against the appropriate party.
Apportionments are still done correctly when there is an appropriate occasion such as the property becoming void, or otherwise exempt. But I sincerely hope that practitioners will now see that apportioning to the date of an insolvency commencement is both inappropriate and unlawful. D
If one instalment is in arrear, and no reminder notice has been issued, the current indebtedness remains the unpaid instalment.
If the ratepayer or taxpayer is in arrears with their payments and a reminder notice (Reg.23 to the Council Tax (Administration and Enforcement) Regulations 1992 SI 1992/613 or Reg 8 to the Non Domestic Rating (Local Lists)(Collection and Enforcement) Regulations 1989) it is still one instalment which is due, unless the debtor has failed to pay within seven days from the date of posting the reminder notice and a further seven days has elapsed thereafter. If the critical date is before that further seven days has elapsed, it is still the one instalment which is proved, because the balance remaining is not due until after the critical date. If the critical date is after the further seven days has elapsed, it is the full balance outstanding on the account which is proved.
So the initial proof of debt at the commencement of any formal insolvency (CVA, administration, winding-up etc, for companies, as well as in IVA, bankruptcy, etc., for individuals) is for instalments that are unpaid
➦Paul Russell LLB, IRRV is an
independent specialist law consultant and
can be contacted at: paul-russell@
btconnect.com
withinthe law
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nprecedented” seems to be the buzzword of the current economic position – it appears absolutely everywhere to
describe just about everything. I don’t think that anything happening to local government at the moment quite fits the definition, but it’s certainly going to be a very difficult time. I suppose that if anything is unprecedented, it is the speed at which everything is happening, which leaves us no time for an orderly retreat.
The situation on Icelandic banks is certainly not unprecedented. In my youth I represented the local authority (LA) associations in the recovery of LAs from the collapse of Barings, BCCI and another smaller bank whose name escapes me. Those involved in Iceland will take no comfort from the fact that it is only now, some 17 or so years after the demise of BCCI, that the sums involved are being partially recovered. Barings and BCCI heralded the start of much closer regulation on LAs and the existence of Treasury Strategies and it may be that that has saved authorities from any other disasters over the last 17 years.
The collapse of any sensible banking system is a grave blow for LAs, many of whom exist on their interest earned. Last year this was about £1.2bn but next year it will be a very small percentage of that. The difficulty is to know exactly where funds may be safely put to earn anything at all. The government deposit-taker, which seemed a totally fatuous idea when set up, is at last coming into its own. When interest rates reached zero in Japan, banks started
to charge customers for ‘safe custody’ of the money they invested with them.
After a brief difficulty in October, at least inflation is not likely to cause any great concern. Indeed many think we may be heading for deflation. But we must remember that the inflation encountered by LAs is not characterised by RPI, and energy costs, etc, may still be uncertain.
As unemployment grows there seems to be more adverse public comment on public sector jobs and pensions. There have been several headlines about the salaries of chief executives and directors. There is also a call for changes to pensions and to cease paying increments. LAs are complex and diverse organisations, and in times of real difficulty you need to have the best managers available. Even the Prime Minister was heard to say that this was no time for the inexperienced… or words to that effect.
In Estonia, public servants have had their pay reduced by 20%. Even large accounting firms are offering four-day weeks and sabbaticals to help protect against redundancy.
And as I write this, a number of LAs are announcing redundancies. Announcements like this would be “unprecedented” if they were not part of the planned economies that have been forced on authorities by a lack of funds.
But it is not only interest – authorities constrained from increasing council tax have become increasingly reliant on fees and charges, which are inconveniently now drying up.
LAs are there to support communities, and there is clearly going to be an increase in benefits and homelessness and a growth in non or slow payment, all harming cash flow. There has been a lot of comment about LAs being too fast to send in bailiffs but this is a very difficult area, as any attempt to maintain recovery will be seen as anti-social, while the collection of all that is possible is of paramount importance.
I hope the stock market stabilises before the next Pension Fund valuation. Any valuation at present would show some disappointing figures. The local government scheme is contributory-funded and quite unlike most public sector schemes, a point often missed when all public sector schemes are branded as being the same.
LAs are very good at managing in difficult times, but this is a time that will need exceptional community leadership from elected members and senior managers to be able to show they can cope with everything thrown at them.
I wonder how all this will affect local government? It must bring about a new urgency to share services and share assets. In retrospect I am sure it will be interesting to see if the system and structure copes, but over the next two years I fear it will not be much fun. D
“Elected members will need to show that they can cope with everything that’s thrown at them”
➦Richard Harbord is a member of the IRRV
and CIPFA Councils and a Past President
of the IRRV
the
world Th
e weight of
We have entered a global recession,
every aspect of which seems to be hitting
hard on LAs. Richard Harbord wonders
what the future holds for local government
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