The Journal for members of theInstitute of RevenuesRating and Valuation

November 2004ISSN 1361-1305£5.50

● What makes a good manager ● Helping the homeless ● Bankruptcy proceedings explained

Tough questions were asked andbig issues debated at this year’sannual conference in Brighton

PIER PRESSURE

nov04 p02 ads 28/10/04 9:57 AM Page 12

NEWSINTO THE FUTURE

Computer modelling technology will

aid valuation process; Best Value

producing good outcomes all round

6DISTANCE LEARNING

Congratulations to new members;

IRRV student becomes a teacher

9ASSOCIATION NEWS

Scottish conference photocall and

important dates for your diary

9

REGULARSDIRECTOR’S NOTES

Are you suffering from

“administrative obesity”?

5FROM HERE AND THERE

Revealed: what makes a good manager;

considering the effects of the CPA

16

VIEWPOINT

How are you going to respond to

the efficiency agenda?

18NEW MEMBERS

Newly qualifieds swell IRRV ranks

19

FEATURESCOVER STORY

Conference call: Kate Miller reports

on all the burning issues that were

debated at the summit at the seaside

12LEGAL CORNER

Paul Russell clears up some of

the confusing elements of local

authority bankruptcy proceedings

20BENEFITS

A DWP scheme proposes to use Rent

Officers to facilitate housing benefit

payments for the homeless

22

Insight November 2004 3

November 2004 ISSN 1361-1305

© IRRV 2004. Reproduction in whole or in part of any article is prohibited withoutprior written consent. The views expressed in this magazine do not necessarilyrepresent the views of the Institute. While all due care is taken regarding the accuracyof information, no responsibility can be accepted for errors. Any advice given doesnot constitute a legal opinion.

IRRV Insight is producedby Wrap Communicationson behalf of the IRRV.Unless otherwiseindicated, copyright in this publication belongs to the IRRV

IN THIS ISSUE...

IRRV President John Roberts IRRV; Vice Presidents Suzanne Dean IRRV CPFA, Allan Traynor IRRV; Council: Kate Adams IRRV, Simon D Bailey IRRV, BarbaraCulverhouse IRRV CPFA, Carol Cutler IRRV, Tom Dixon, BSc (Est Man), Pat K DohertyIRRV CPFA, Richard J Guy FRICS (Dip Rating) IRRV MCIArb, Richard L Harbord MPhilCPFA FCCA IRRV FIDP FBIM FRSA, Julie Holden IRRV, Caroline Hopkins IRRV, DianeLeggo Bsc MRICS IRRV, Bill Lovell IRRV, Kerry McDermott IRRV, Roger G Messenger BSc (Est Man), Maureen Neave MBA IRRV (Tech), Jane RatcliffeIRRV, Helen Robertson IRRV (Tech), Eric Rose FRICS IRRV, Peter Scrafton IRRVFCIArb, Angela Storey IRRV (Tech), Alan J Titheridge IRRV CPFA, Bob Trahern IRRV,Gary L Watson IRRV, Nigel Woods FRICS IRRV; Director David Magor OBE IRRV

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nov04 p03 Insight conts new_ce 18/11/04 11:42 AM Page 5

T here is a new illness around, called“administrative obesity”. Experts saythis new illness is particularly

prevalent in local government. The serviceareas vulnerable to this new ailment are thosewhere – allegedly – no particular skills areneeded because they are repetitive, transaction-based services.

If you are unlucky enough to catch this newsuper-bug, don’t worry – the cure is at hand. Allyou need is a dose of the new medicine“Gershon”. Its effect is immediate. Yoursymptoms disappear and you begin to achievesavings in the area of most pain, “the back office”.

Unfortunately, as with all new medicines,there are side effects. While savings aredelivered, you begin to suffer the long-termeffects of “service deterioration”. The impactof these side effects must not beunderestimated, they can lead to a “costneutral” prognosis which, if not controlled, canresult in a situation where the cure is far worsethan the original pain.

Am I being unfair to the principles ofGershon? Am I closing my mind to theobvious? I don’t believe so. The immediate pastPresident, Carol Cutler, in her address to theAnnual Conference in Brighton, gave a classicexample of the impact of service deteriorationand its relationship to cost. She gave specificfigures for her own authority, that illustratedthe financial impact of a one per cent reductionin collection performance (see the conferencereport on page 12).

Let’s put this argument in the context ofrevenue and benefits services. If the principlesof Gershon were applied, and a nationalcouncil tax collection centre were introduced, Ithink it would be safe to assume there wouldbe an initial reduction in performance. Thisreduction in performance would come frommany directions. There would be deteriorationin tax yield, a dramatic reduction in scrutinyand, of course, the inevitable fall-off incollection performance.

The standards of excellence set by individualauthorities speak for themselves. Take ChilternDistrict Council. At a local level they deliverrevenues and benefits services that are secondto none. Locally elected representatives subjectthem to rigorous scrutiny. The staff are multi-skilled and highly motivated. They usesoftware that is developed in a competitivemarket place. The quality of the software existsbecause there are over 400 potential customerswho have choice, which is the driver thatensures the supplier always seeks to deliver thebest product. This argument applies to all localauthorities and their suppliers. Competitiondrives up standards, improves performance andreduces cost.

This style of service delivery does not meanthere is no role for the private sector. They arealready in the market place. As was evidentfrom the Institute’s Performance Awardfinalists, there are many excellent examples of local authorities working in partnershipwith private companies. The private sectordelivers effective support services to localauthorities that enhance service quality.

Perhaps before central government gives localgovernment its dose of Gershon, it shouldconsider administering the wonder drug tosome of its own centralised services, that havenot particularly covered themselves in gloryover the past two years! ■

Insight November 2004 5

DIRECTORS NOTES

David Magor director

ALWAYS READTHE LABEL

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6 Insight November 2004

NEWS

Computer modelling technology willbe used for the first time to assist

in the revaluation of domestic properties in England, the Valuation Office Agency(VOA) has announced. The VOA is responsible for assessing all 22 million domestic properties in Englandand placing them in the appropriate band. It hopes the use of the new technology will increase the consistency of valuations,and make the revaluation process moreefficient and cost-effective. Valuation Office staff take account of thesize, age, character and locality of eachproperty, and will use sales price data fromaround the valuation date (1 April 2005) toarrive at an accurate property banding. Thenew computer modelling technology willspeed up the process, as data processing andcalculation work can be done automatically

from property data (for example, number ofrooms, floor area, age of property) and salesinformation. The new technology will helpmake banding more consistent across largenumbers of similar properties, and willenable the VOA to provide council taxpayers with more information about howtheir property has been valued.Andrew Hudson, Chief Executive of theVOA, explained: “This technology offersimproved consistency that will help usdeliver valuations in a fair and objective wayacross the country. We are taking advantageof the technology, which has been developedby the Cole Layer Trumble company (CLT).The company has set up similar systemsthat have been used extensively inrevaluations of all types of property in theUnited States, Canada, Australia, NewZealand and many European countries.”

CLT is a division of Tyler Technologies, aleading supplier to local governments in theUS and Canada. It is the largest provider ofmass appraisal and property tax softwareand reassessment outsourcing services inNorth America. Since its founding in 1938,CLT has provided appraisal outsourcingservices and property tax administrationsoftware to more than 1,200 assessingjurisdictions, and has appraised more than60 million parcels of real property. No decisions have yet been reached by theGovernment on whether, and if so what,revisions should be made to the level andnumber of council tax bands in England.Those decisions will be informed by theoutcome of the review currently beingundertaken by Sir Michael Lyons, which isdue to report by the end of 2005.For more information visit www.voa.gov.uk

HI-TECH VALUES

Insight November 2004 7

NEWS

A n independent report published by theODPM paints an encouraging picture of the

Government’s Best Value Regime, and the key roleit plays as the cornerstone for improvement andperformance management in local government. The report, Evaluation of the long-term impact ofthe Best Value regime: First Interim report, presentsinterim findings from a study on the Best Valueregime conducted by the Centre for Local andRegional Government Research at Cardiff University. The findings show that Best Value is having apositive impact on the internal culture and structureof many local authorities, producing betteroutcomes for local people. These findings suggestthat by embracing Best Value principles, authoritiesare making positive changes, such as throughcompetition and public-private partnership. Drawing on information from 2002, the interimfindings confirm that Best Value principles are nowfirmly embedded within councils’ performancemanagement arrangements, and continue toprovide the basis for improvement and assessment. The report can be found on the ODPM Website.

From 1 November this year, the five valuationtribunals in the Valuation Tribunal Service’s(VTS) North West Administrative Unit arechanging the way they list rating appeals. The aim is to assess the benefits or otherwise of listingafter target date. They will move from issuingnotices of hearing before VOA programmeddiscussion periods have ended, to issuing noticesafter periods have ended. The North WestAdministrative Unit will encourage ratepayers,their agents and the Valuation Office Agency(VOA) to resolve all possible appeals during thediscussion period. Only unresolved appeals willbe listed for tribunal hearing. To find out more, contact Tony Masella,Corporate Director, VTS on 0207 841 8700; emailtony.masella@vto.gsx.gov.uk, or AndrewShipsides, Head of Administration North WestAdministrative Unit on 0151 243 7900; emailandrew.shipsides@vto.gsx.gov.uk

Councils must be allowed torecover more of their costs to help

deliver a first class planning service, saidPlanning Minister Keith Hill. Launching a full consultation on thestructure of fees, Hill said: “For manyyears the planning system has beenunderfunded. While the massive cashboost we had in the form of theplanning delivery grant has helped, westill have a situation where the feescouncils can charge are far short of thecosts of dealing with applications,especially the larger ones. “So, we are inviting all users of theplanning system: developers, councilsand the general public, to give us theirviews on a package of proposals toincrease fees proportionately andsensibly. We are not asking smallerdevelopers and householders to payhuge increases,” he added. The increases are designed to fall

differentially on applicants. Forexample, a small business that acquireda new property and needed to apply fora change of use permission would see afee increase from £220 to £240. For the first time, a quality serviceshould accompany proposed feeincreases. Only local authorities thatmeet their targets for determining majorapplications will be allowed to increasethe application fee they charge by up to10 per cent. This should help them meetmore of the costs of handling theselarge and often complex applications. Authorities that offer the facility forapplications to be made online will alsohave the choice to reduce those fees toencourage efficiency in the system. The proposed fees increases wouldcome into effect on 1 April 2005.Consultation ends on December 6. Readthe document on the ODPM website.

PEOPLE POWER FUTURE PLAN

LATER LISTINGS

J ohn Roberts, Head of Revenuesand Benefits at Thanet District

Council, has been elected this year’sIRRV President. At the hand-over ceremony at annualconference in Brighton last month, hepaid tribute to outgoing PresidentCarol Cutler and looked forward to hisyear in office. “The forthcoming yearwill be significant for our membershipin many ways” he predicted,“particularly with the Lyons review,designed to shape the future of localgovernment finances, which will seeIRRV members playing a prominentrole advising on policy”.John Roberts has been an activemember of the Institute since the1970s. His career in the public sectorhas seen him move from the north westof England to Kent, initially withShepway District Council, thenThanet. Among his manycontributions to the IRRV he has beena member of both the BenefitsCommittee of Enquiry and theCouncil Tax Committee of Enquiry.

NEW PRESIDENTPROMISES A YEAR OF ACTIVITY

8 Insight November 2004

NEWS

Local Government Ombudsman,Jerry White, has issued a report

(ref no 03/B/12862) on the investigationof a complaint against SandwellMetropolitan Borough Council. Mr Rowell (not his real name for legalreasons) complained that the councilissued a summons against him for non-payment of council tax, eventhough his council tax benefit claimwas pending and he had provided allthe necessary information that hecould. The council started court actioneven though the benefit claim had beenassessed and Mr Rowell did not owethe money being sought. As a result,Mr Rowell overpaid his council tax by£400. The council then issued anincorrect, amended council tax bill andMr Rowell paid a further £200, whichhe did not owe. The council then failedto address his complaint. Maladministration causing injusticewas found by the Ombudsman. Herecommended the council pay MrRowell £400 in recognition that thesummons should not have been issued,for the inconvenience and financialdifficulties experienced in makingpayments when they were not due, andfor the time and trouble in pursuing hiscomplaint. It should also review itsprocedures to ensure it does not issue asummons or seek a liability order wherethe debt arises wholly or mainly fromits own failure to determine a claim,and where the claimant has given thecouncil all the information requested ora reasonable explanation for any delay.

TAX PAYERIS RIGHT

SOW THE SEEDRegulations are now in place to provide

for Business Improvement Districts(BIDs), which will allow local authorities andbusinesses to work together to initiate localprojects to improve their area. Local Government Minister Nick Raynsfordsaid: “BID schemes will play an importantrole in creating healthy local economies.They will strengthen the role of localauthorities as community leaders – a keyaspect of our vision for the future of localgovernment. This will encourage localauthorities to improve links with theirbusiness communities, while businesses will become more involved in decisionsaffecting their local area. “I look forward to seeing schemes roll out in the future, and welcome the contributionthey will make to breathing new life intolocal economies,” he added. All the businesses in a proposed BID area willhave a say in whether or not a scheme goesahead. The proposal would only be acceptedif the majority of business ratepayers voted infavour of it. This majority must be both amajority of businesses voting, and alsorepresent more than 50 per cent of therateable value of voting businesses. Such avoting system, known as a “dual-keymechanism”, has been designed to protectthe interests of small and large businesses. The Government supports 22 BID pilotschemes as part of the National BID Pilots

Project being run by the Association of TownCentre Management (ATCM). These pilotswill provide the private and public sectorswith valuable knowledge about how to set up a BID. The London Development Agencyis also supporting five Circle Initiative pilots across London. The 22 BID pilot schemes are taking place in the following locations: Bedford,Birmingham, Blackpool, Brandon, Bristol,Bromley, Coventry, Ealing, Greenwich,Hammersmith and Fulham, Hull, Lincoln,Liverpool, Maidstone, Manchester, London’sWest End, Newquay, Peterborough,Plymouth, Reading, Swansea, and Rugby and Warwickshire. Further details and casestudies of these pilots are available on theNational BIDs pilot Project website atwww.ukbids.org The Circle Initiative is working on behalf ofthe London Development Agency to developa strategy for BIDs across London. Theunderlying objective of the programme is topilot the principles of BIDs within the UKcontext and share the lessons learnedthrough a Learning Network. The five pilotBIDs are located across central London.They are: Better Bankside, Circle Waterloo,Holborn Business Partnership, PaddingtonCircle and the Piccadilly Circus Partnership.Further details and case studies of thesepilots are available on the London BIDswebsite at www.londonbids.info

2004

Insight November 2004 9

NEWS

Best Scottish entrants Jackie Lewis and Peter Neil from North Lanarkshire benefitsteam receive their trophy from Anite’s Malcolm Shannon (left) and Carol Cutler

Two of the Institute’s newly qualified Corporate Members are picturedabove, at the awards ceremony held at the University of Wales,

Newport in September. Lisa Henson (right), who is Senior Assessor withTeignbridge District Council and Joanne Stanton (left), Assistant RevenuesManager, Borough Council of King’s Lynn and West Norfolk, are just twoof the graduates who attended the ceremony, and their success bodes wellfor the future of the Institute.With the new academic year underway, we hope the operation of the newsyllabus will run more smoothly this year, as all of us are now clearer aboutwhat is required – although changes are being discussed to clarify some ofthe queries that have arisen. Both the Institute and the Distance LearningCentre will keep you up-to-date on anything that happens.This time last year I mentioned that some of our successful students maylike to take on the role of author or tutor in the future. This has happened,with Emma Smith from South Staffs Council joining the team to supportthose studying the Level 3 Management subject. Emma has been reviewingthe material and will soon be taking the tutorial role for the first time.December brings another set of exams. There is not much time left, but ifanyone needs help or advice please contact us as soon as possible.

Les Tuckwell, Manager, IRRV Distance Learning Centre

LANCASHIRE & CHESHIREThursday 18 NovemberVenue Haigh Hall Country Park, WiganSpeaker Gordon HeathTopic Revenues Training Day – revaluationSponsored by Anite Public Services

Thursday 2 December 2pmVenue LiverpoolChristmas Lunch

YORKSHIRE & DISTRICTTuesday 23 November9.30am-4pmVenue Barnsley MBCInduction training dayFor information contact Paul Ellispellis@cravendc.gov.uk

DISTANCE LEARNERSENJOY SUCCESS In his article on completion notices in September’s

Insight, Paul Russell says a VT President may allow a lateappeal. This provision is in SI 1989/439 (as amended),Part V – Council Tax Appeals, regulation 36(5) and onlyapplies to domestic completion notices. Regulation 35 ofthis SI defines a completion notice as a notice underSchedule 4A as it applies for the purposes of Part 1 ofthe Local Government Finance Act 1992 (Council Tax:England and Wales). Non-domestic completion noticescan be appealed to the Lands Tribunal (SI 1993/291regulation 47(1)), not the High Court.

Richard Shaw FRICS IRRV

LETTER TO THE EDITOR

ASSOCIATION DIARY

Mike Peterson (left), IRRV Scottish Association President, helps Carol Cutler, IRRV National President, pick a winner

Paul Taylor (left), Revenues Officer from Perth and Kinrossreceives the golf competition trophy from Jon Gibbs of IBS

WINNERS IN SCOTLANDThe Scottish Association had its own award winners at its conference inCrieff, in advance of the national annual conference. North LanarkshireCouncil’s benefits team was selected as the best Scottish entrant at theconference’s Awards village and was on the national shortlist for BenefitsTeam of the Year.As usual, the golf competition was one of the highlights at Crieff, won thisyear by Paul Taylor.

or revenues and benefitsteams, technology is onlypart of the solution, which is why more than 50 teamsacross the UK use Authority

Solutions. Local government spends in excessof £40 billion externally each year, and thereis increasing pressure on authorities toprovide better performance, improvedservices, greater efficiency and overall bestvalue to their citizens.

This is where the work begins for Civica’sAuthority Solutions team, bringing anunrivalled combination of public serviceinsight, IT systems expertise and theexperience of successful partnerships acrossthe public sector.

Corporate supportCivica can help authorities throughout theCPA process. Drawing on national andinternational knowledge of performanceframeworks, benchmarking, risk managementand information standards, we workalongside customers to establish structuredprocesses, performance score cards andindividual performance improvement projects.

Funding and procurement supportCivica has a track record of developingprocurement strategies and tackling fundinggaps. Our solutions are innovative, yet practical,with a focus on reducing implementation timeand risk. Well placed to construct partnershipbids for individual organisations or consortia,we make best use of grants, commercialsponsorship or other matched funding, andoffer a variety of ‘pay for performance’ modelswhere outlay is based on achieving objectives.

Resource and developmentOur Authority Solutions team helps localauthorities to overcome both immediate andlong-term resource issues. Through interimmanagers, technical specialists or project andchange management leadership, Civica canaddress short-term resource gaps.

Both directly and indirectly through ourpartners, we also provide effective staffdevelopment and learning programmes thatare tailored to the individual organisation.These include coaching, mentoring appraisaland culture change.

e-GovernmentPreparing for 2005 and beyond, Civicaprovides local government with IT and e-Government strategy and planningcombined with a range of practical andaffordable e-Service solutions. We helpauthorities deliver against the modernisingagenda, matching the needs of citizens withpublic service innovation. In Australia, Civica is the leading provider of local government CRM solutions,supporting continuous service improvement.

Infrastructure servicesOur well designed, resilient infrastructureenables sustainable service quality withintegration and collaboration. A MicrosoftGold Certified Partner, Civica has a trackrecord in infrastructure design and delivery atlocal level, supporting customer needs whileoffering innovation and flexibility. AuthoritySolutions specialises in ways to create,manage and share knowledge more effectively.Civica is one of the UK’s most experiencedproviders of consultancy, software and publicsector services. It has a 20-year history ofdelivering solutions in local government,police, healthcare and education. Followingthe acquisition of Radius Computer Services,it supplies approximately 75 per cent of theUK’s local authorities.

10 Insight November 2004

ADVERTISEMENT FEATURE

Civica’s Authority Solutions team draws on a combination oflocal government expertise, technology and insight to helprevenues and benefits teams deliver a top quality service

RAISING THESTANDARD

f

“Civica is working with Eden DistrictCouncil to review current customercontact across all access channels.The purpose of the review is toconsider improvements that will enablecitizens to engage more easily andcontact the council with the aim ofreceiving a first-time solution to theirrequests. This consultancy work willconsider front and back-office systemsand working practices. The Civicaapproach is to work with a council’sofficers to carry forward the review and establish the skills and experiencenecessary to analyse and improveprocesses in the future.”Paul Foote, Director of Corporate andLegal Services, Eden District Council

“Civica’s Authority Solutions teamoffers a professional, top quality service.The fact that they are qualified ex-localgovernment practitioners means theyunderstand our needs and offer usvaluable support and advice in our day-to-day operations.”Gareth Evans, Head of Revenues andCustomer Services, Borough Council of King’s Lynn and West Norfolk.

nov04_p18 civica_ce 28/10/04 2:32 PM Page 12

nov04_p18 civica_ce 28/10/04 2:32 PM Page 13

12 Insight November 2004

COVER STORY

T he Institute’s annual conferencekicked off with a stimulatingdebate about an issue central to

IRRV members’ working lives: the future of local taxation. Sir Michael Lyons and histeam have now started their review of theoptions for reforming council funding. The IRRV is also continuing with its ownCommittee of Enquiry into local taxation.For the moment it has decided not to issueany conclusions, but to keep its powder dryand put a submission to the Lyons reviewwhen the opportunity arises.

However, the Lyons review has a huge taskahead if it is to produce anything that is astep forward from the Raynsford balance of funding review that reported in thesummer, according to Tony Travers, Directorof the Greater London Group at the LondonSchool of Economics. Sir Michael’s team

faces “serious data problems” he told the conference.

“Lyons ought to commission a mass ofdetailed research into council tax, non-domestic rates and local income tax,”Mr Travers said. “Full, worked throughexamples of how different options mightaffect individuals, households, authoritiesand regions will have to be produced ifministers are to make decisions.”

Mr Travers warned that the biggestobstacle to reform of local governmentfunding is likely to be the redistributiveconsequences of any changes. Memories ofthe poll tax disaster still haunt politicians,he said. That is why neither thisGovernment nor the Conservatives are keento commit themselves to reform in the shortterm. Nevertheless, he urged delegates, andall those who believe a better funding system

Will we see reform ofcouncil tax? Will localrevenues servicesbe ditched in thedrive for greaterefficiency? KateMiller reports onthe hot topics fromthe conference

A CONFERENCE

Insight November 2004 13

COVER STORY

is needed, to continue to press for reform. However, research shows the public are

hazy about local government finance andsuspicious of local authorities being givenmore autonomy. So all those who are callingfor greater freedom for local authorities will have to “sell the idea to the widerworld,” he said.

Local Government Minister NickRaynsford defended the Government’s long-term approach. In his address to theconference, he said it was right to delaydecisions on the future of local taxationuntil after the next general election. TheGovernment shouldn’t rush into reform as Margaret Thatcher had rushed into the poll tax.

Getting the right balance between centraland local funding is important, MrRaynsford stressed. He agreed in part with

the view that Steve Freer, Chief Executive of CIPFA, had given the conference. MrFreer said that local government needs toraise a higher proportion of its revenueslocally if it is to feel in charge of its destiny.However, Mr Raynsford did not endorse MrFreer’s view that the ratio should be 50:50.

The Minister emphasised the continuingrole of council tax. It has many advantages,being easy to understand and to administer,but, “I do take seriously the complaintsabout the fairness of council tax,” he said.He looked to Sir Michael Lyons’ enquiry to address this problem.

The case for local income tax Used as a supplement to council tax, localincome tax (LIT) could be a viable way ofshifting the balance of funding in favour ofmore locally raised revenues, argued Mr Freer.

Drawing on CIPFA’s research, he proposed a LIT model that he believed would supportlocal authorities while at the same time notbeing too complex for employers.

CIPFA suggests a local income tax, set bylocal government and collected by theInland Revenue. National income tax wouldbe lowered in parallel, creating a real shiftfrom central to local funding. The modeltries to keep it simple by having only uppertier and unitary authorities levy a LIT, whiledistricts councils continue to levy counciltax. The authorities would choose a LITrate from a menu of, say, five options, andthe tax would be on earned income only.

According to Mr Freer, an importantaspect of the scheme would be for theTreasury to take the risk in collection. TheInland Revenue would have to inform localauthorities how much LIT it would be

WITH A VIEW

14 Insight November 2004

COVER STORY

paying to them early enough for the incometo be incorporated into their budgets.“Wehope this offers a way forward,” Mr Freertold IRRV delegates at the conference. Thescheme contained elements of rough justice,but its simplicity would make it easy toadminister and understand.

What price efficiency?A major driver for change in the publicsector is the Government’s push for greaterefficiency, designed to free up money tospend on frontline services. The Gershonreview has raised the prospect of local taxcollection being amalgamated into regionalagencies, and the Audit Commission isalready looking at the possibility of aLondon-wide council tax collection agency.

But big is not necessarily better when itcomes to collecting local authority revenues,said IRRV President Carol Cutler in heropening address to the conference.

“You only have to look at the ChildSupport Agency,” Ms Cutler said, forconfirmation that a large organisation is noguarantee of efficient collection. She also

noted that the Inland Revenue manages anin-year collection rate of only 85 per cent.

If collection rates dropped, any efficiencygains would quickly be wiped out, shewarned. Ms Cutler pointed out that in herown authority, the London Borough ofHarrow, a one per cent drop in council taxcollection would lose the authority one

million pounds. But the pressure for gains in efficiency is strong, so councils need toshow they can make their own efficiencyimprovements in revenues collection.

The opposite view was put by RodAldridge, Executive Chairman of the Capita

Group. It’s time to be honest about the factthat fewer staff will be employed in revenues and benefits services in the future, he toldconference delegates.

“It is no longer acceptable for 400 localauthorities to duplicate the services ofcouncil tax, housing benefit and businessrates,” said Mr Aldridge. Instead, localauthorities should be moving their backoffice processes into regional centres, where re-engineering the service, makinggreater use of IT and eliminating paper, will release cash that can be used forfrontline services, he added.

The Gershon efficiency review will demandthese sorts of savings, so “local authoritiesmust act before central government does,”Mr Aldridge told the conference. He urged local government to drop itsprotectionist stance and “lead the shared services agenda” before it is forcedinto it. �

Kate Miller is Managing Editor of the IRRV magazines

Local government must must drop its protectionist stance and lead the shared

services agenda before it is forced into it

“

”

Insight November 2004 15

Overall Winner – Salford City Council (From left): Chris Barrie, Martin Vickers (Head ofCustomer Services), John Tanner (Assistant Director, Internal Services), Jackie Saville(Council Tax and Benefits Team leader), Amanda Maxwell (Business Development andCommunications officer), Stephen Fryer (Assistant Director, External Services), Lynne Goslin(Customer Services Team Leader) and Amanda Rice (Call Centre Manager).

This year’s gala night for the presentation of the IRRVPerformance Awards was bigger and better then ever.With two new categories joining the list, there weremore winning teams than in previous years plus, for thefirst time, an overall winner. Chris Barrie (of ‘Red Dwarf’fame) was a highly entertaining presenter and IRRVPresident Carol Cutler gave her congratulations to allthe shortlisted teams, as well as to the final winners.

Anti-Fraud Team of the year – Borough of Telford & Wrekin Sponsored by IBS

Front Row – Left to Right: Jerry Kurek (Benefits Investigation Team Manager), Christine Evans(Revenues & Benefits Services Manager), Denise Davies (Benefits Investigation Officer, LeeHiggins (Benefits Manager (Operations)). Back Row – Left to Right: Chris Barrie, Carol Cutler,Emma Stringfellow (Benefits Investigation Officer), Andy Hollis (Benefits Investigation Officer,Rae Munn (Benefits Investigation Officer), Siobhan Martin (Benefits Investigation Officer), IanAllcock (Interim Investigation Team Manager).

Revenues Team of the Year – Amber Valley Borough Council Sponsored by Capita Software ServicesLeft to right: Chris Barrie, Kevin Stewart (Head of Benefits and Revenues), Peter O'Brien(Capita Software Services), Carol Cutler, Karen Kirkland (Council Tax Billing Team Leader),Kelly Waddoups (Council Tax Billing Officer), Martin Hendy (Revenues Collection Manager),Amanda Miller (Council Tax Billing OfficOer), Rachael Huggins (Council Tax Billing Officer) andNeil Bradbury (Benefits and Revenues Operations Manager).

Best use of Technology – Metropolitan Borough of Wirral Sponsored by CominoLeft to right: Chris Barrie, Richard Newby, (Comino ), Carol Cutler, Keith Holden (IT GroupOfficer), Lee Woods (Visitng Group Leader), Kris Ng (Housing Benefit Manager for Fraud),Paula Jones (Visitor/Assessor), Councillor David Ellerton.

Benefits Team of the Year – Salford City Council Sponsored by Sx3Left to right: Chris Barrie, John Tanner, Carol Cutler, Jim Reilly (Sx3), Jackie Saville, LynneGoslin, Amanda Rice, Amanda Maxwell, Martin Vickers, Stephen Fryer.

Excellence in Customer Services - Metropolitan Borough of Wirral Sponsored by HBOSLeft to right: Chris Barrie, Roger Littlewood (HBOS), Carol Cutler, Mark Payne (One Stop ShopManager), Julie Williams (Customer Service Manager), Steve Ruddy (One Stop ShopManager), Councillor David Ellerton, Pete Collins (One Stop Shop Manager), Vicki Lungley(One Stop Shop Manager), Councillor Sue Brown.

Excellence in Education and Development – Capita Local Government Services Sponsored by MeritecLeft to right: Chris Barrie, Carol Cutler, Tracey Parry (Meritec), Mike Peterson (Head ofRevenues and Benefits, City of Edinburgh Council), Mark Bennet (Capita), Judith Keech(Capita), John de la Rue (Capita).

Best Valuation Initiative – Wilks Head & Eve Sponsored by CivicaRight to Left: Paul Tonks (Civica), Chris Barrie, Carol Cutler, David Cullen (Associate Partner),Iain Dewar (Partner), Helen Ryan (Marketing Co-ordinator), Paul Harding (Associate Partner),Andrew Thompson (Partner).

Best new Initiative – Capita Business Services Ltd with City of Edinburgh CouncilSponsored by ppsLeft tor right: Judith Keech, Chris Barrie, Carol Cutler, Ken MacNeil (pps), Mike Peterson,Alistair Nairn (Revenues Manager), Alan Sinclair (Revenues and Benefits Manager).

FROM HERE & THERE

Pat Doherty rounds up the latest newsand views on benefit services performance

T he characteristics of housingbenefit managers in wellperforming or turnaround

local authorities has been examined by a research study. The Management Stylesand Characteristics of Local AuthorityHousing Benefit Managers - DWPResearch report No. 218 is designed tohallmark the management and leadershippractices and the skills employed in sevencase study local authorities.

A management and leadership frameworkwas developed by the researchers to examinespecific aspects of the behaviour of themanagers in the case study authorities. Theydiscovered that there is no one universallyapplicable management style. For example,an organisation in need of performanceimprovement may require a strong top-down driven style of management, while anauthority already at the top end of theperformance league may require a steadymanagement style with a safe pair of handsapproach. The ideal manager that emergesfrom the case studies has qualities that may

appear paradoxical. For example, he or shemay be all of the following:■ personally knowledgeable, but works to

get the best from others■ has an open, listening style, uses humour,

yet does not suffer fools■ is not expected to be ‘visionary’, yet sees

the bigger picture■ manages change well, but creates stability.

What distinguishes the managers in thecase studies is their ability to deploy a goodbalance of management and leadershipqualities. This is particularly relevant tohousing benefit, as it is a process andoutput-driven service that relies on effective team-working to attain highperformance standards.

Those in the case studyauthorities are enthused and motivated to performat the higher levelswhen they share and

subscribe to the personal values that areimparted by their managers and seniormanagement team.

Individual members of staff at middlemanagement and lower levels tend to find it difficult to relate to high level corporatevalues. Instead they are more likely to followthe examples that are set by their direct linemanagers, taking on board values such asintegrity, honesty and trust.

While the report makes an interesting read, it adds little to the sum of humanknowledge. It does, however, demonstratethat we are all different.

Best value under scrutinyA recent ODPM report looked at the

impact of best value on improving services.The research focused on the following threekey sets of variables:■ best value processes: the ways in which

local authorities implement the regime■ process outcomes: the impacts of the

regime on the internal characteristics of local authorities

PRACTICE MAKESPERFECT…

16 Insight November 2004

Insight November 2004 17

FROM HERE & THERE

■ performance change: impacts of theregime on the economy, efficiency andeffectiveness of local authority services.

The findings presented in the report showthat most officers believe their organisationsare embracing best value wholeheartedly. In particular, elements of the regime thathad previously not been widely adopted,such as competition and public-privatepartnership, were apparently becoming more commonplace. There also seem tohave been significant changes in the internal

culture and structures of many authoritiesand their approaches to the design anddelivery of services.

The report concludes that best valueprocesses appear to be having a positiveimpact on the internal characteristics ofmany authorities and services. The types ofchanges reported by respondents were thoseencouraged by the best value regime.

However, the report suggests the resultsmust be interpreted with some caution.They are based on the perceptions of localauthority officers and elected members,some of whom may have overestimatedthe scale of changes. The next stage of the study will build on

current analysis by examining changes inauthorities’ internal characteristics andapproaches to service design and delivery. It will also analyse the links between thesechanges and improvements in performanceas measured by BVPIs and CPA scores.

A key issue will be how authorities haveresponded to changes in the best valueguidance, which places less emphasis onreviews and performance plans, and theeffect of this on performance improvement.

Ministerial web chatPhil Hope, Parliamentary Under Secretary

of State at the ODPM, recently took part in a web chat on cutting bureaucracy in local government. These are some of thequestions he was asked:

“The Conservative Party has announced that they regard comprehensive performanceassessment (CPA) as ‘red tape’. They wouldscrap it and save £1 billion a year. Does itreally cost this much? What do you believeare the key selling points of CPA that wouldpersuade the public that it is worth £1billion per annum?”

Phil Hope replied: “This is an importantquestion. Most local authorities welcomethe CPA as a valuable tool for improvingservices and driving up standards. The costof CPA in its first year was approximately£10 million. Inspections form a key part of the CPA process and have animportant role to play insecuring improvementsin performance.However, it is clearlyimportant that performancemanagement frameworks are cost-effective and

proportionate. We have, therefore, sought to reduce the burden of inspection. Forexample, in 2003, there was a reduction of one third in the overall number ofinspections compared with the previousyear. We are currently consulting on how we might improve the CPA process andwould welcome comments andcontributions from people in the field onhow to make this even better.”

This is an interesting answer, but it doesnot answer the question asked. I have nodoubt that CPA has driven local authoritiesto try to improve performance, but we haveto ask ourselves the following questions:■ how much of the improvement that has

been made is merely cosmetic?■ how sustainable is the improvement?■ how much of the improvement would

have come about without CPA?■ how much local authority resource is

actually diverted from delivering services to completing the CPA process?

I am, in principle, a supporter of CPA. Butwith the drive for best value, we need to askwhether the way in which this bureaucraticprocess is set up and inspected is really thebest way to drive services forward,particularly as local authorities are alwaysstruggling with a lack of resources. ■

Pat Doherty is an independent consultant

and trainer, and a Past President of the IRRV.

Email him at: pkd@pkdconsultancy.co.uk

A key issue will be how authorities have

responded to changes in best value guidance

and the effect on performance improvement

“”

20 Insight November 2004

LEGAL CORNER

PROVING A POINT

Paul Russell clears up some of the confusionover local authority bankruptcy proceedings

How much should be included in aproof of debt? This is a commonarea of confusion when revenues

officers are trying to collect debts throughbankruptcy or liquidation proceedings.

For a council tax or business rate debt tobe provable by a local authority creditor inan insolvency, it must be due at the date ofthe bankruptcy or winding up order.

Section 382 of the Insolvency Act 1986defines a bankruptcy debt as inter alia “any debt or liability to which he is subjectat the commencement of the bankruptcy”.The same basis is applicable to a creditor to a liquidation.

So how do we determine the amount that is due at the date of the bankruptcy orwinding up order? The simple answer isthat it is the amount that has become due in law and has not been paid.

The easiest way of describing this inpractice is by way of examples. If we have a situation where a demand was sent on 14 March for £1,200, payable over 10instalments of £120 from 1 April onwards,and the debtor is made bankrupt on 2 Junein the same year. The amount proved in thebankruptcy depends on the situation.

Situation 1The debtor has paid all his instalments by direct debit. He has paid threeinstalments of £120, totalling £360, and is therefore up-to-date with the payments.There is no proof of debt because he owes nothing in law.Situation 2The debtor has paid nothing, in spite of aregulation 23 reminder notice being posted

on 20 April. The proof of debt should be for the full £1,200, as the full balancebecame payable on 4 May.Situation 3The debtor has paid the April and Mayinstalments only, without a regulation 23reminder notice having been sent. Here, the proof of debt is the one overdueinstalment. This is all that is due in law.

Situation 4The debtor has paid the April instalment,but not the May or June instalments, and aregulations 23 reminder notice was postedon 20 May. In this situation the onlyamounts due in law are the two unpaidinstalments, which total £240. The fullremaining sum for the year will not becomedue until the 14th day after posting thenotice, which is 3 June.Situation 5The debtor had paid nothing even thoughhe was sent a regulation 23 reminder noticeon 15 April. On 20 April he telephoned thecouncil and made an arrangement to paythe 10 instalments, running from 1 Mayinstead of April. He has paid the May andJune instalments of £120, thus thecomputer system shown no arrears. In thiscase the proof of debt is the full balanceremaining for the year, amounting to £960.

This last answer may astonish somereaders. The reason for it is that arescheduling of payments does not stop theamounts from being considered as arrears.

In Director of Public Prosecutions versusBurton and others (QBD) 1995, it was heldthat agreeing or rescheduling payments of

A rescheduling of payments does notstop the amounts

from being consideredas arrears

“

”

nov04 legal corner_CE 27/10/04 10:29 AM Page 18

amounts that were in arrears in relation tothe original demand notice and schedule 1instalments did not stop those paymentsfrom being arrears. Thus, once amountshave become due under an original demand,no agreement or rescheduling can changethat situation; they are still considered to be arrears in law.

So, it is clear that proof of debt shouldinclude all amounts of arrears. Once an

instalment is unpaid under a schedule 1instalment scheme, a regulation 23reminder notice has been issued, and theseven days have elapsed withoutcompliance by the taxpayer (by paying theoverdue instalment within that time), thefull balance of the tax for that financialyear becomes due in law on the 14th dayafter the reminder was sent. This meansthat a proof of debt on any day after that14th day must be for the total amountoutstanding for that year together with any arrears from previous years.

In situations where, for example, ataxpayer is up-to-date with the current year’sinstalments, on the date on which thebankruptcy order is made, there would beno proof of debt, unless there were sumsthat remained unpaid from previous years.

Where instalments are in arrears, but noregulation 23 notice has been sent, or if onehas been sent and the 14th day has not yetbeen reached on the date of the bankruptcy

order, the proof of debt will simply be theaggregate of instalments in arrears ratherthan the balance for the year.

In cases where proof of debt is for lessthan the full balance showing on theaccount, future payments will remain due bythe taxpayer. In practical terms, in situation3, the one instalment due and for whichproof of debt has been lodged, the £120should be written off, there is no cause toissue a new demand, simply write to thetaxpayer and advise that the instalments dueon 1 July and thereafter must be paid.

When an amount has been written off onbeing notified of a taxpayer becominginsolvent, if a distribution is then made bythe trustee or liquidator, debit is then raisedfor the amount of the distribution.

Many practitioners seem to apportion casesto the date of the bankruptcy or winding uporder. This is totally incorrect because therehas been no change in taxpayer/ratepayerprompting an apportionment. This view issupported by such cases as in re NoltonBusiness Centres Ltd, Eliades (voluntaryliquidator) versus City of London (ChD)1996 and the recent Regentford Ltd versusThanet DC (QBD) 2004.

Some practitioners also persist in regardingthe whole year’s tax as being due whicheversituation is present, harping back to the daysof the General Rate Act 1967. But then, oldfogies like me who were around before 1990are a diminishing number. Happy days! ■

Insight November 2004 21

LEGAL CORNER

Paul Russell LLB IRRV is a consultant and trainer. He

can be contacted at: paul-russell@btconnect.com

It is clear that proof of debt should include all amounts of arrears“ ”

The views given in this column are personal and

should not be construed as a legal opinion

nov04 legal corner_CE 27/10/04 10:29 AM Page 19

22 Insight November 2004

BENEFITS

New proposals will help sort out the problems of housingbenefit for homeless households, says Julie Holden

T he DWP has recently examined theway in which housing benefit paysfor temporary accommodation for

homeless households. A summary of theresearch was published in September.

There are currently two ways of dealingwith temporary accommodation claims andsubsidy, depending on whether the localauthority leases the accommodation from the private sector, or whether it is leased by a housingassociation. Theaim of the DWPresearch was tofind the best wayto bring the twoschemestogether.

It wasproposed that the Rent Service be used tounite the schemes. Rent officers coulddetermine the core rent, based on local marketrents but with adjustments to recognise thedifferences of this type of tenancy.

Following consultation, the DWP has comeup with some recommendations on how to do this. It proposes a grid system rentofficers can use to determine the maximumrents housing benefit can pay, by referring to postcode and number of bedrooms. Thegrid will be updated each year and will onlyapply to new lets after the update.

Inflation related increases should beincluded as review periods within a lease.This would fairly reflect changes to rents inthe market place. For example, a five-yearlease would have a review at year three.

Management costs should not be calculatedas a proportion of the rent. Instead, amanagement fee should be determined,based on performance of housing benefitsections and the deprivation in the area. An

average of £70 per week is suggested.Management costs were shown to have

little correlation to the size of a property,and therefore to the rent. Data suggested theaverage cost for a housing association wasbetween £70 and £85 per week, whereas in a local authority it was £47 per week(excluding repairs and maintenance). It isnot clear how the performance of thebenefits service will be considered, but if thisis a measure of efficiency, it could prove aninteresting relationship point betweenhousing departments and the benefit section.

The new system will not apply in retrospect.Many landlords have already opted into anexisting scheme, and it was felt that goodwilland relationships with landlords would bedamaged if the new scheme were to beimposed on existing leases.

There is still concern that no action isbeing taken to tackle the extent to whichhomeless households are dependent onbenefits. But at least the changes will help

with the planningfor and provision of temporaryaccommodation.

The impact onbenefit claims fortemporaryaccommodationshould be positive.

With rents agreed and set yearly by the RentService, it will be possible to deal with claimsmore smoothly and quickly. In the longerterm, determining the amount to be paid andsetting up the payment and collection regimeat the outset, may help to enable thehousehold to move on from temporary topermanent accommodation more quickly, asclaimants are less likely to get into arrears. ■

HOME IMPROVEMENTS

‘‘With rents agreed and set yearly by the Rent Service,claims can be dealt with more smoothly and quickly. In the longer term, it may help claimants move from

temporary to permanent housing more quickly’’

Julie Holden is Head of Revenues and Benefits at Tandridge District Council and Chair

of the IRRV’s Benefit Faculty Board

GL Hearn is a modern, independent, multi-skilled property consultancy providing expert professional advice on a wide range of issues, with offices throughout the UK. We currently have an opportunity within our Southampton Office to join our Rating Team, which is represented throughout the UK, serving a wide range of private and public sector clients in different market sectors.

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