Agenda and draft minutes

To receive apologies for absence and notification of substitutes (if any).

Apologies for absence were tabled by Councillor Martin Howard with Councillor Judith Welbourn substituting.

Further apologies with no substitute Members were tabled by Councillors Alan Bell, David Brown, Anton Dani, Viven Edge and Yvonne Stevens.

To sign and confirm the minutes of the last two meetings held on the  16 September 2021 and the 4 November 2021.

Committee agreed the minutes of the two previous meetings held on the 16 September 2021 and the 4 November 2021.

To receive declarations of interests in respect of any item on the agenda.

Councillor Alison Austin declared her role as a Member of Lincolnshire County Council in reference to the Budget report tabled.

To answer any written questions received from members of the public no later than 5 p.m. two clear working days prior to the meeting – for this meeting the deadline is 5 p.m. on Monday 14 February 2022.

No public questions tabled.

A report by the Section 151 Officer.

The Assistant Director – Finance presented the report to committee providing an overview of the key areas for consideration.

The report outlined the 2022/23 revenue and capital position for the General Fund and proposals for the setting of discretionary fees and charges. The purpose of the report is to ask Members to recommend the 2022/23 estimates (along with associated Policies and Strategies) and council tax level to the Council for formal approval, and for Members to be advised on the projected financial position through to 2026/27.

The year’s Medium Term Financial Strategy was set at a time of continuing significant uncertainty, change and financial challenges for local government. Aside from COVID-19 related pressures, there are issues such as rising inflation, welfare reform, uncertainty around Government funding reductions and responding to reductions in Central Government funding, (with a greater emphasis on business and housing growth). 

There were also significant changes affecting business rates.  Some having

already been introduced, such as the part-localisation of the regime from April 2013 and the 2017 revaluation exercise and others, such as the proposal to further devolve business rate incomes to councils are yet to come into full effect. Their impacts include the financial effect of growth or contraction in the local rateable value on the Council’s resource base, and increased uncertainties surrounding the extent of appeals and the ability to accurately forecast income into the future.

The Council remained aware of the issues surrounding business rate appeals and it would be under continuous management by officers with the emphasis on making sure there is a reasonable and prudent provision made for successful appeals.

The estimated business rates deficit for 2022/23 in Table 2 of the report was due mainly to the COVID-19 pandemic which has seen unprecedented support to business from central government in the form of business rate reliefs, these are funded from monies received from central government in 2020/21 and 2021/22 and now released from reserves. Many businesses would not re-emerge from the periods of lockdown causing a further loss in income, however the full impact of this is still indeterminate.  The majority of Government support of business ceased in September 2021 with the closure of the majority of its support to businesses including the furlough scheme. Compensation for continued Rate Reliefs and income loss are made through Section 31 grants and are dealt with in the General Fund

There were new 2022/23 New Homes Bonus (NHB) allocations announced as part of the Local Government Finance Settlement for 2022/23 only as far as we are aware. The government has added a year of additional grant. As previously announced, the 2021/22 “in year” allocations will not have future years legacy payments nor has the 2022/23 allocation. If the scheme was to be continued in its current form next years’ payment would reflect just the growth in the previous year.

Income from fees and charges is an important source of revenue for the Council, representing almost 15% of the gross income budgeted in 2022/23. Charges  ...  view the full minutes text for item 36.

A report by the Assistant Director - Finance

It is noted that committee moved into exempt measures to allow them to consider Appendix A to this report.  However, whilst committee visually noted the content of the exempt appendix it was not questioned nor queried nor referenced in debate and the minute below is the opening presentation from the public report with the official recommendation, which again is for public record. As such no exempt minute is required for this item.

The Revenues and Benefits Manager presented the report advising it proposed the introduction of a Benefits Verification Policy from 1 April 2022, to replace the current Risk Based Verification Policy.

The policy defined the standards of verification for evidence required in respect of Housing Benefit claims and Local Council Tax Support applications, to help protect public funds from fraud and error

It provided a fit for purpose policy, ensuring processes and controls were robust to prevent fraud and error, and at the same time it balanced the need for ease of access for the customer, and efficiency in the processing and decision making of claims.

Since 2012 verification of evidence for new Housing Benefit (HB) claims and Council Tax Support (CTS) applications made to Boston BC have been administered under a Risk Based Verification policy. 

Risk-Based Verification (RBV) had been extended to local authorities on a voluntary basis, with clear requirements and expectations set out by Department for Work and Pensions (DWP) for authorities that chose to adopt this approach.

The adoption of RBV allowed for resources to be targeted towards those cases with greater risk of fraud and error. The timing for the review was important because an RBV policy, once in place for a financial year, could not be changed in-year due to the complications this would cause in the Housing Benefit subsidy audit process.

The Benefits Verification Policy set out a clear and consistent standard for the evidence requirements and verification to support Housing Benefit and Council Tax Support new claims and changes in circumstances. 

The policy was fit for purpose in the current environment, and provided for a robust approach to the verification of HB and CTS claims and changes, protecting public funds through helping prevent fraud and error entering the benefit system, and ensures that controls were robust to protect Housing Benefit subsidy.

Members fully supported the Policy, agreeing it was well constituted and clear and long overdue. 

RECOMMENDATION:

That Corporate and Community Committee agreed the recommendations as tabled:

That Corporate and Community Committee consider the Benefits Verification Policy, and Since 2012 verification of evidence for new Housing Benefit (HB) claims and Council Tax Support (CTS) applications made to Boston BC have been administered under a Risk Based Verification policy.

Risk-Based Verification (RBV) was extended to local authorities on a voluntary basis, with clear requirements and expectations set out by Department for Work and Pensions (DWP) for authorities that chose to adopt this approach. The adoption of RBV allowed for resources to be targeted towards those cases with greater risk of fraud and  ...  view the full minutes text for item 37.

(For Members to note/discuss the Committee’s current work programme)

Members noted the work programme for the next scheduled meeting.  No additional requests for reporting were tabled.