INSIGHT

INSIDE: Running the Institute • Back office processing • Data sharing • From the archives • Viewpoint

May 2014 £6.50 www.irrv.net

ISSN

136

1-13

05

It’s transformation all the way in Luton......and the improvements are on show for all to see and share in

The monthly journal of the Institute of Revenues, Rating & Valuation

IRRV INSIGHT

Managing Editor

John Roberts

Editorial Director

Lester Dinnie

Art Director

Don Tregartha

Designers

Clare Barker

Roddy Clenaghan

Copy Editor

Vicki Chastney

Publisher

Tregartha Dinnie

Ltd

IRRV

Chief Executive David Magor OBE IRRV (Hons) Northumberland House 5th Floor 303-306 High Holborn London WC1V 7JZ T 020 7831 3505 E enquiries@irrv.org.uk W www.irrv.net

Enquiries Membership 020 7691 8996 Conferences 020 7691 8987 Subscriptions 020 7691 8996

©IRRV 2014. 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 theInstitute. 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.

Features

Robert Brown BSc FRICS FIRRV

Carol Cutler IRRV (Hons)

Louise Freeth FIRRV

Gordon Heath BSc IRRV (Hons)

Roger Messenger BSc (Est Man) FRICS FIRRV MCIArb REV

Angela Storey Tech IRRV MCMI

Your IRRV Council:

IRRV PRESIDENT Richard Harbord MPhil CPFA FCCA IRRV (Hons) FIDP FBIM FRSA

SENIOR VICE PRESIDENT Kevin Stewart FIRRV MAAT MCMI

Alan Bronte FRICS IRRV (Hons)

David Chapman IRRV (Hons)

Phil Adlard Tech IRRV MlnstLM MCMI

John Clark FIRRV

Tom Dixon RD BSc (Est Man) FRICS IRRV (Hons)

Ian Ferguson IRRV (Hons)

Richard Guy FRICS (Dip Rating) FIRRV MCIArb

Mary Hardman IRRV (Hons) FRICS MCMI

Paul McDermott IRRV (Hons)

Kerry Macdermott IRRV (Hons)

JUNIOR VICE PRESIDENTJim McCafferty IRRV (Hons)

Maureen Neave Tech IRRV

Nick Rowe IRRV (Hons)

Alistair Townsend IRRV (Hons) MCMI

Bob Trahern IRRV (Hons)

HONORARY TREASURER Allan Traynor FCCA IRRV (Hons)

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A message from the Deputy Chief Executive.

Log in to ‘magazines’ in themember area of www.irrv.net to hear the message online.

Advertising T 020 7691 8979 E sales@irrv.org.uk

Editorial John Roberts IRRV (Hons) T 07952 659 258 E jcroberts54@hotmail.com

Tregartha Dinnie Ltd Ibex House 5 Keller Close Kiln Farm Milton Keynes MK11 3LL T 01908 306500 W www.tregartha-dinnie.co.uk

IRRV INSIGHT is produced by Tregartha Dinnie Ltd on behalf of the IRRV.

Unless otherwise indicated, copyright in this publication belongs to the IRRV.

May 2014 ISSN 1361-1305

Cover story 18

It’s transformation all the way in Luton......and the improvements are on show for allto see and share in.

Feature 22

Collection & enforcementA sensible piece of legislation that will actually reduceenforcement, says Jamie Waller, while Paul Caddy asks local authorities to play the game fairly.

Editor’s welcome

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Regular items

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John Roberts IRRV (Hons) is Managing Editor of the Institute’s magazines

“ Welcome to the May edition of INSIGHT.”

This month, we’re emailing our membership magazine to a number of key professionals who aren’t yet members of the Institute, so if you are reading it for the first time, or if you’re an ‘occasional’ reader who sees someone else’s copy, why not join the IRRV and find out about the many other attractions of being directly involved with the organisation that represents all involved in revenues, benefits and valuation?

Our regular readers will of course be familiar with many of our contributors, who provide incisive comment and analysis – just as you would expect from those at the leading edge of their respective professions. Alistair Townsend is back with an examination of key case law involving company voluntary arrangements, and the new enforcement legislation is under the microscope of Jamie Waller and Paul Caddy. Combine that with Ibrahim Hasan’s intricate examination of freedom of information law and practice, and the practical leadership advice offered by health and wellbeing guru Mark Davies, and an increase in your knowledge base is guaranteed!

Peter Scrafton also makes a welcome return, with the first part of a critique of the application of ‘reasonable repair ’. On the lighter side, Martin Reader looks at the quirkier side of rating, and our ever-popular caption competition once again proves a hit with the readership.

With many other pages of news and views both from within and without the Institute, if you are reading this magazine courtesy of a friendly IRRV member forwarding it to you, you really can’t afford to be out of the loop, so join the Institute today and don’t miss out! Go to http://www.irrv.net/membership/index.asp for more information... but in the meantime, read on and enjoy!

What’s in the next issue... • Reports from the Keele conference week

• Rowena Hunter presents an IRRV international feature with a difference!

• The world of technology as seen through Mel Poluck’s eyes.

Chief Executive’s notes 05

News and events 06

Education and membership 08

Running the Institute 10

It’s a funny old world 12

From the archives 13

Faculty Board report 14

Revenues roundup 15

Valuation matters 16

Back office processing 20

Benefits bulletin 25

Data sharing/FOI 26

Management 28

Scrafton’s law 30

Doherty’s despatch 32

Viewpoint 34

The IRRV now offers a work-based qualification. It is the Level 3 Diploma in Local Taxation, Benefits and Advice (QCF). This qualification is up to date with the changes that have taken place this year in the Local Taxation and Benefits areas. Candidates choose of one of four pathways to achieve the qualification, which are:

• LocalTaxation

• Benefits

• Generic

• Advice

The Advice pathway will be particularly useful for officers who work in an advice role within a Revenues and Benefits Service or elsewhere.

The Level 3 Diploma in Local Taxation, Benefits and Advice (QCF) replaces the Level 3 Diploma in Local Taxation and Benefits (QCF) and centres can start to register candidates immediately.

Completing this NEW qualification will allow the member of staff to obtain IRRV Technician membership and use the designation Tech IRRV.

IRRV Level 3 QCF Qualification

Please send your queries to dolores.fergus@irrv.org.uk or call 020 7691 8994

This Professional Meeting is aimed at those working within Local Government. It will focus on all the current issues affecting rating practitioners including the various announcements that were made both in the autumn statement last December and then in the run up to billing authorities issuing their annual rate bills for 2014/15. This professional meeting will be delivered by David Magor (Chief Executive IRRV) and Gary Watson (Deputy Chief Executive IRRV).

Session 1: Business Rate RetentionStatus report; Role of the billing authority; Role of the valuation officer; Role of the ratepayer (and their agent).

Session 2: Reflections on Recent Case LawLiability; Reliefs; Recovery.

Session 3: An Overview of ReliefsMandatory; Discretionary; Small business; Part-Occupied; Hardship.

Session 4: Proposed Review of Business Rates Administration Roles of billing authorities and the valuation officer; Backdating of liability; Valuation methods; Frequency of valuations.

www.irrv.net/conferences

A Rating Day for Local Government OfficersBradford 23 May / Manchester 27 May / London 29 May

Enquiries can be made by email to conference@irrv.org.uk or by telephone 020 7691 8987

SPECIAL OFFER:

3 FOR 2 ON

ENROLMENTS*

* Delegates must be from the same organisation in order to receive this offer

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5David Magor OBE IRRV (Hons) is Chief Executive of the Institute

In many respects, England is lagging behind Scotland, Northern

Ireland and Wales, with a local government structure created

around a 1950s Meccano set rather than a modern perfectly

structured 21st century Lego creation! The ‘patchwork quilts’

of English local government need to be modernised quickly to

ensure funding is concentrated on efficiently delivered front

line services.

To assist the process in England, Eric Pickles, the Secretary

of State for Communities and Local Government, announced

recently that councils in England are to share £410m to fund

projects to bring together local public services, reduce duplication, and cut costs. The funding is part of the public service reform programme, which is intended to amongst

other things increase sharing between authorities.

The programme funding is intended to fundamentally

change the way local public services are delivered. Local

government has already been given £90m, including an £83m

capitalisation allocation to allow capital receipts to be used

for revenue spending on service reforms.

A bidding process for the remaining £320m was opened

in early April, with an emphasis on proposals from smaller

district councils that want to share management teams and

other services. The total is made up of £120m awarded

through the government’s Transformation Challenge Award

programme, and in 2015/16 a distribution of £200m worth of

flexibility in the use of capital receipts.

There is another government programme which has quietly

developed into a model of efficiency and joined up public

service delivery. The project to which I refer is the Tell Us Once (TUO) programme, which now reaches over 54 million

people. The Head of the Delivery Partnerships is Diane Leggo, who in a former life administered the valuation process

for council tax. The project has effectively utilised the Public Service Network to maintain continuity of the TUO service

and to improve service delivery.

The introduction of these initiatives and the development

of ‘one stop’ services is an important precursor to the

rollout of Universal Credit. It is my view that the customer

facing element of social security reform needs the skills and

accountability of local government.

I hope there is someone in government who is standing back

and looking at the bigger picture to ensure we fit together

any plans for reorganisation and funding initiatives, in order to

develop high quality integrated public services.

Chief Executive’s notes

David Magor is keeping an eye on the bigger picture as public service reforms continue to take shape

The pressure on local government spending continues to grow as we move forward to expected fundamental reforms of the overall structures in all parts of Great Britain and Northern Ireland.

“The funding is part of the public service reform programme, which is intended to amongst other things increase sharing between authorities.”

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Lancashire and Cheshire AssociationPictured with Association President Paul Kelly at the Lancashire and Cheshire Association annual dinner, held in March at the Thistle Hotel, Haydock, are representatives of the event’s sponsors.

The event was extremely successful and popular, with over 100

guests in attendance.

The Association would like to express its thanks to their

sponsors for their continuing support – they are arvato

Bertelsmann, Bristow & Sutor, Capacity Grid, Destin Solutions

Ltd, Dukes, Equita, Greenhalgh Kerr, Horsfields, Jacobs, JBW,

Newlyn, Phoenix, Rossendales and Rundles.

News and events

Letter to the EditorDear Editor, I have a suggestion...The government has created its Money Advice Service (MAS) website,

https://www.moneyadviceservice.org.uk/en?locale=enPerhaps the IRRV could become a partner with the MAS, and offer an

accredited ‘budgeting’ qualification to local authority staff? It would be really

useful for recovery or sundry debt staff to undertake some sort of short

qualification and to be able to give accredited advice to those who contact

us. This would also reassure callers that staff are fully qualified to give

budgeting advice.

Andrew Shepherd IRRV (Hons), Leeds City Council

In defence of the welfare reforms...Work and Pensions Secretary Iain Duncan Smith has defended changes to the welfare system, including the disability benefit reforms, adding that the raft of changes should save the taxpayer £50bn by the end of this Parliament.He said the reforms – including tougher criteria for people seeking disability

allowances – would “help and benefit” those who wanted to return to work.

Speaking on BBC One’s Andrew Marr Show, Mr Duncan Smith said, “I think

the work programme is now for the first time ever working with people, who

were once on sickness benefits and who are now not, going back to work.”

He said the new regime would see disabled benefits claimants assessed

on a regular basis to determine whether they need more support with their

ailments or help to get work.

The government has been gradually rolling out the new Personal Independence Payment (PIP) to replace the Disability Living Allowance (DLA) and the new regime will include regular face-to-face checks to

establish the extent of claimants’ ailments.

However, Sarah Clifford, Director of Communications for the Disabilities

Trust, said the reforms were part of a ‘triple whammy’ of factors affecting

disabled people.

She said the changes needed to be seen alongside cutbacks by local

authorities, and changes to housing benefit

in England, Scotland and Wales. Ms Clifford

said, “We just hope Mr Duncan Smith

can deliver on the promise that this

will be a fair system and will not

be unfair or unjust on people

with disabilities.”

News of membersA celebration of life... Wendy Keena (30th July 1966 – 16th March 2014).

Nigel Blair of Northgate Public Services pays tribute to Wendy, who died recently

It is with deep regret that I have to announce the passing of

our great friend and colleague Wendy Keena. Wendy died

recently, following a long and brave struggle against cancer.

During that time, not only did she live with her own cancer, but

she was also a great inspiration and help to other sufferers.

Wendy worked in our revenues and benefits team since

she joined First Software in 1998. Her in-depth knowledge,

brilliant demonstration skills, humour and dedication were

all of invaluable help over the past 16 years. Many of you

will remember Wendy from our stand at innumerable IRRV

conferences. She seemed to know so many people, and her

laugh and easy manner always attracted people for a chat.

Prior to joining Northgate, Wendy worked in local

government for the previous 15 years, initially at Hyndburn

Council and latterly at Blackburn with Darwen Council.

Wendy had a passion for life which was evident to anyone

who met her. She was passionate about all sport and a life

long fan of Blackburn Rovers – balanced by an equivalent

hatred for Burnley FC! She also loved to travel, having only

recently returned from a holiday in Dubai with her devoted

husband Tom. Alongside all of this, and the thing we will all

miss most about Wendy, was her love of a good time. Many

of us will long treasure memories of great meals and brilliant

days and nights out in her company.

Our thoughts and prayers are with her family, and

particularly Tom, who was her full time carer over the past

two years.

The President’s blog Institute President Richard Harbord is well into his second spell in the hot seat, and invites members to share in his activities.You can find out what Richard has

been doing over the past weeks by

logging in to http://richardharbord.blogspot.co.uk/.

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It’s caption time once again...This month, we need a caption to describe the antics of Institute Past President and Honorary Treasurer Allan Traynor and Chris Bloodworth of Rossendales. I’m sure many of you will have something to say. Email the Editor on jcroberts54@hotmail.com with your suggestions!

Last month, we wanted to know what was on IRRV Deputy

Chief Executive Gary Watson’s mind as he was flanked by

fellow Institute dignitaries Bob Trahern and David Magor.

This month’s winner is Phil Adlard, with “Clean shirt, check. I’ll have tomato soup followed by spaghetti, what can possibly go wrong?” (clearly, some people know you all too

well, Gary – Editor!).

And in another bumper collection, it would be remiss of us not

to mention some very close runner-up entries. “Pity my new dentures hadn’t arrived in time for me to smile like these two gnasher-flasher bookends”, says Marshall Morris. The

teeth get another mention, with Loraine Radford’s

“Unlike my colleagues, I forgot the Fixodent”,

and regular contributor Peter Hurlstone is here again

with two offerings – “Who said the three wise monkeys were dead?” and “I can tell by their faces that they fancy the waitress!”

“Three Institute Past Presidents try to impress by playing ‘chopsticks’ on the piano to whoever wants to listen”, is this month’s entry from the

mysterious ‘Sucrologist’.

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Vulnerable people suffering as result of housing welfare reforms, say MPsReforms to the support provided for housing costs – including the Social Sector Size Criteria (SSSC) (also known as the ‘Bedroom Tax’ and the ‘Spare Room Subsidy’ ) and the household benefit cap – are causing financial hardship to vulnerable people who were not the intended targets of the reforms and are unlikely to be able to change their circumstances in response, say the Work and Pensions Committee in a recently published report.The SSSC is having a particular impact on people with disabilities who

have adapted homes or need a room to hold medical equipment or

to accommodate a carer. The Committee recommends that anybody

living in a home that has been significantly adapted for them should

be exempt from the SSSC. The report further urges the government to

exempt all households that contain a person in receipt of higher level disability benefits (DLA or PIP) from the SSSC.

Dame Anne Begg MP, Committee Chair, said, “The government has

reformed the housing cost support system with the aim of reducing

benefit expenditure and incentivising people to enter work. But

vulnerable groups, who were not the intended targets of the reforms

and are not able to respond by moving house or finding a job, are

suffering as a result”.

The Committee concludes that the benefit cap is having an adverse

impact on disabled people and their carers. It says this is particularly

the case where the carer lives with the disabled person, for example a

parent or adult child, but is not considered part of the same household

for benefit purposes, and urges the government to exempt all recipients

of Carers Allowance in this situation from the benefit cap.

On Discretionary Housing Payments (DHPs), the Committee says

that the government should review DHP provision when more data

are available, and increase funding, if necessary, to protect vulnerable

people from hardship.

And on reforms to Local Housing Allowance (LHA), the Committee

points to a growing discrepancy between average rents and the amount

of LHA that households can claim. As a result, private sector landlords

are increasingly reluctant to rent to LHA recipients, the group said,

adding that evictions and non-renewals of tenancies are increasing, and

the properties that do remain available to claimants are of increasingly

poor quality.

EEA jobseekers – consultation views wantedThe Housing Benefit (Habitual Residence) Amendment Regulations 2014 came into effect on 1 April, removing access to housing benefit for European Economic Area (EEA) jobseekers who are entitled to income-based Jobseeker’s Allowance.The government’s Social Services Advisory Committee is particularly

keen to hear from a broad range of organisations and individuals

who have informed views and evidence relating to a number of key

issues. Go to http://ssac.independent.gov.uk/news/press-releases/07-04-14.pdf to see what issues the government wishes to

tackle, and make your views known – the closing date is 30th May.

Captions invited!Captions invited!

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Education and membership

Kevin Stewart FIRRV MAAT MCMI is Institute

Senior Vice President and Chairman of the

Education and Membership Committee

New members

STUDENT MEMBERSNAME EMPLOYER

Kerry East Maldon District Council

Leanne Goddard Pembrokeshire CC

Lesley Evans Hoople Ltd

Amy Suzanne Booth Barnsley Metropolitan BC

TECHNICIAN MEMBERS NAME EMPLOYER

James Straw Lincoln City Council

Ryszard Filipiak Lincoln City Council

CORPORATE MEMBERS NAME EMPLOYER

Gillian Long Milton Keynes Council

AFFILIATE MEMBERS NAME EMPLOYER

Catherine Nicholson Fortunatus Housing Solutions

HONOURS MEMBERS NAME EMPLOYER

Robert Thompson Kettering Borough Council

Lonely Mulenga JTS Partnership

Craig Donaghy GVA James Barr

Jay Grant Cavendish Maxwell

QCF MEMBERS NAME EMPLOYER

Sanchez Brown Hackney London BC

Jake Rosenthal Hackney London BC

Jamal Simon Hackney London BC

Wayne Dalling Shepway District Council

Holly DeGrussa Shepway District Council

ORGANISATIONAL MEMBERS NAME

Fortunatus Housing Solutions

Julius Bailiffs

Once again, I’ve given Michael Hopkins a well-

earned break, so that I can briefly summarise

the latest events in the Institute’s education and

membership calendar.

On education matters, it is important that

we get the appropriate accreditation for our

examinations. Recently OFQUAL did a review

of our current award. OFQUAL is the regulator

of qualifications (other than degrees), exams

and assessments in England, and of vocational

qualifications in Northern Ireland. I am pleased

to say that we have retained the accreditation

for our Level 3 Certificate Qualifications.

I can also announce that we have now

obtained accreditation for the revised Level

2 Enforcement qualification. Its formal title is

IRRV Level 2 Certificate in Enforcement – Taking Control of Goods (QCF). This

is a new qualification that we will shortly

introduce, to ensure that staff are trained on

the new enforcement rules that came into

force on 6th April 2014. Please watch out for

announcements about this.

It is at this time that students are starting to

think about their exams, or possibly studying for

the IRRV qualifications. The study options for

2013-14 are shown at http://www.irrv.net/documents/6/STUDY%20OPTIONS%20FOR%20IRRV%20QUALIFICATION%202013-2014.pdf, and it is hoped that these

courses will largely run again in 2014/15.

I suggest that if you want to study, then

approach your employer and seek financial and

other practical support. In these challenging

austere times, where budgets are so tight and

set so far in advance, early notice of likely costs

is hugely advisable. Also when seeking financial

support, do try and remember that you may

also want to attend the refresher courses that

are held at Keele University in April, and then

at IRRV Headquarters in London in November

every year.

Moving on to membership matters, please

do try and encourage colleagues to join

the Institute. I know that fewer and fewer

organisations are paying for their staff

membership fees, but do remember as I

previously reported that you can get tax relief

on any subscriptions paid. Further details are

available at http://www.hmrc.gov.uk/incometax/relief-subs.htm.

Most members receive their IRRV INSIGHT and

VALUER magazines electronically. Back issues

are also available by clicking on www.irrv.net. You will need your registration number and

password to log in to the secure area to view

the magazines – if you have forgotten these

you can click on the help button and they will

be sent to you. Please do regularly access your

online IRRV account, as we will be seeking the

election of IRRV Council members electronically

again soon.

Voluntary plans for our Institute members have

now been introduced through the Hospital and Medical Care Association (HMCA) at

favourable rates. For further details please go to

www.hmca.co.uk/irrv.htm. As you will see

when you click on the link, there are savings

to be made on a number of areas, such as

medical and life plans, as well as a travel plan.

And finally, can I once again thank Education

and Membership staff for all their hard work

and support.

It’s Kevin Stewart’s turn to once again run the rule over the IRRV’s education and membership portfolio

Congratulations to everyone!!

NAME QUALIFICATION EMPLOYER

Helen Hockaday NVQ in Housing and Council Tax Benefits Durham County Council

Susan Kellow NVQ in Housing and Council Tax Benefits Cornwall Council

Paul Flanagan NVQ in Housing and Council Tax Benefits Islington Borough Council

Rachel Hatfield NVQ in Housing and Council Tax Benefits Amber Valley District Council

Benjamin Smith NVQ in Housing and Council Tax Benefits Cornwall Council

Michelle Todd NVQ in Local Taxation Kirkless Metroplitan BC

Sarah Mellor NVQ in Local Taxation Kirkless Metroplitan BC

Kirsty Warren NVQ in Local Taxation Corby Borough Council

Kim Trodd Level 3 QCF Benefits Pathway North Devon District Council

Andrew Gutsell Level 3 QCF Revenues Pathway Shepway District Council

Helen Sefton Level 3 QCF Revenues Pathway Cheshire East Council

Latest vocational qualification successes

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Achieve Your Potential with IRRV Distance Learning Courses IRRV Certificate Level 3

This course is designed for those who wish to gain a professional qualification and further their careers.

Streams available:

• Revenues and Welfare Benefits Stream• Business Rates Stream• Valuation Tribunal Stream

Fee: £1260.00 + VAT

IRRV Professional Diploma

This course is designed for those who wish to progress to senior positions. The Professional Diploma leads to the highest level qualification, IRRV Honours.

Stream available:

• Revenues and Welfare Benefits Stream

Fee: £1410.00 + VAT

IRRV Distance Learning

Please send your queries to distancelearning@irrv.org.uk or telephone 020 7691 8984

* This offer is valid on multiple bookings with a minimum of 3 candidates

SPECIAL OFFER:

3 FOR 2 ONENROLMENTS*

In-House Training Service

For the month of May the IRRV will be offering a discount on our in-house training service. Please quote the code “INH02MAY” (Discount code can only be used once).

The Institute offers top quality training in a wide range of subjects. The courses are designed to appeal to staff that need to understand all aspects of Council Tax, Non-Domestic Rate and Revenues (either at introductory, general or expert levels).Our trainers are extremely experienced practitioners with expert subject knowledge. The trainers use a plain English approach to aid understanding using a variety of different teaching styles to suit each group. Our bespoke in-house training service is tailored specifically to the client’s requirements and held on site at your offices for convenience. Where budgets are tight and time even tighter our training services have become invaluable to our clients.

Fees

Non Member: £845 per day – NOW ONLY £645

IRRV Member: £745 per day – NOW ONLY £595(Membership: Individual, Benefit Advisory Service, Forum or Organisational)

Special Offer for May

For all enquiries, please contact the Conference Team at conference@irrv.org.uk

Running the Institute

of the Code will be referred for investigation

and possible action to a Conduct Sub-

Committee of the Institute’s Professional

Conduct Committee.

3. Compliance with the specific requirements

of this Code does not obviate compliance

with the general Code of Conduct for

Members of the Institute, and the two

codes should be seen as complementary.

All marketing activity by or on behalf of

members must also comply with the

Business Protection from Misleading

Marketing Regulations 2008 and any other

relevant legislation.

Seeking instructions – general principles4. There is no blanket restriction in principle

on approaching a ratepayer to offer rating

services, even in the awareness that another

professional adviser has been retained or

had submitted a rating appeal.

5. However, those making such approaches

should act professionally at all times and

should not persistently or in a harassing

manner seek instructions after the

ratepayer has indicated that he is content

with his present advisers or does not wish

to use the services of the firm or individual

making the approach. A ratepayer may

decide to conduct his or her own appeal

without representation and such a decision

must be respected without repeated

attempts to encourage that person to

engage outside assistance.

6. Instructions must not be solicited directly

from any branch of a national organisation,

where the person soliciting the instructions

is aware, or could readily ascertain, that

the matter in relation to which instructions

are sought is being dealt with by the

headquarters of that organisation.

7. Proper diligence must be exercised in

identifying the appropriate person to

approach within the organisation to solicit

instructions, and if that person declines

the approach no other person in the

organisation should be approached.

Conduct of marketing and telesales staff8. Marketing and telesales staff employed

or retained by the firm should be given

appropriate training in the basic principles of

rating advice and the services being offered,

The IRRV’s Professional Conduct Committee

keeps under continuous review matters affecting

the professional conduct of members, bearing

in mind the reasonable expectations of the

profession and public in their dealings with the

public at large, and actual or potential clients.

The Committee is pleased to announce the

adoption of a marketing code of conduct, applicable primarily to rating services and advice,

including appeals. This new document will form

part of the full IRRV Code of Conduct for Members from 1 July 2014, and applies to all

members regardless of grade. The text of the

Code is set out below, and it will be placed on

the IRRV website close to the existing Code of

Conduct material.

Please read and understand the new Code

if you are involved in, control or direct the

marketing of rating advice services (including

appeals) to occupiers, etc, whether as an

individual on your own behalf, as the responsible

partner/director, or as the employer of external

marketing services on your organisation’s behalf.

Breach of the Code may be the subject

of a reference to the Professional Conduct

Committee, which may take action to enforce the

Code in appropriate cases.

Richard GuyChair, IRRV Professional Conduct Committee

THE INSTITUTE OF REVENUES, RATING AND VALUATIONCODE ON MARKETING PRACTICE FOR RATING SERVICES[Approved by the Council on 13 January 2014; coming into effect 1 July 2014]

Introduction1. This Code regulates the marketing of

professional services by or on behalf

of members of the Institute (including

Organisational Members) and firms

controlled by such members.

2. Members will be held accountable for any

breaches of this Code by persons engaged

in marketing on their behalf unless they

can show that they took reasonable steps

to ensure that this Code was properly

observed. Any complaints alleging a breach

and also made familiar with the content of

this Code.

9. Any marketing approach, whether in person,

by telephone, in writing or by email, should

be carried out professionally and without

the making of any untrue, exaggerated,

irrelevant or inappropriate statements.

10. The content of any approach should be

restricted to describing the services the

firm has to offer, and should not include

any criticism, direct or implied, of the firm

currently instructed by the ratepayer. In

particular, the firm should not:

• castaspersionsontheworkcarriedout

by the retained firm

• implythatthefirmmakingtheapproach

has a better success rate in appeals than

the retained firm

• misleadinglyimplythattheservices

offered are different from those carried

out under the existing instructions

• misleadinglyadvisetheratepayerthat

he is ‘missing out’ by not submitting an

early appeal

• criticiseanyotherqualifiedratingsurveyor

or firm of chartered surveyors.

11. The firm or individual must not seek to

gain an advantage over the firm currently

instructed by of its own volition lodging an

appeal, ostensibly on behalf of the ratepayer

but without having been instructed to do

so, or later withdrawing or agreeing that

appeal, and thereafter claiming some form

of ‘ownership’ of the appeal.

Marketing material and communications12. All marketing material, communications

and activity related to the marketing of

professional services shall:

(a) be legal, decent, honest and truthful;

(b) not criticise the work of other

professional rating advisers; and

(c) not bring the Institute into disrepute.

13. All case studies or testimonials

included in marketing material shall

be genuine, accurate and capable of

being authenticated.

14. No general or specific percentage reductions

shall be stated in marketing material

either in relation to comparable (or not

comparable) properties in such a way as

to imply that a similar reduction could be

achieved on a ratepayer’s property, when it

could not be known whether other factors

relating to that property might apply so as to

Richard Guy introduces the Institute’s recently approved rating marketing code

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Running the Institute

prevent such a reduction being obtained.

15. In this Code, as in the general Code

of Conduct, ‘marketing material’

includes (without limitation) published

advertisements, mailshots, advertising on

any website or form of social media, radio

and television advertising and any other

form of public announcement, electronic

or otherwise.

Professional fees16. Fee bases must be agreed in advance at

the giving of instructions, or as soon as

practicable thereafter.

17. No fee shall be payable for merely

physically lodging an appeal with

the Valuation Office Agency, without

attendant professional advice in relation

to the proposed appeal.

Contracts of engagement18. All contracts for the provision of

professional rating services shall be

fully and clearly documented, reflecting

accurately the terms that have been

agreed. Any contract relating to more

than one rating revaluation should make

the duration of the contract and the

period covered explicit in the letter of

engagement or contract, and this duration

and period should be clearly stated, and

not contained in other or minor clauses

covering other or minor issues.

19. Contracts should be written in Plain

English, readable and readily capable of

being understood.

20. Any contract agreed orally but not

signed may be carried out if the firm

has informed the client in writing of the

intention to do so, and provided there

is no objection received from the client.

Such contracts should be confirmed by

the rating surveyor in writing prior to

carrying out any contracted work.

21. Contracts should not contain onerous

or unreasonable penalty clauses

which would prevent a client changing

professional advisers. If a change of

adviser is made, the former adviser may

be able to charge a fee commensurate

with the work carried out, including full

payment of the fee if work has been

completed.

Complaints procedures22. A written complaints procedure shall be

maintained within the firm, and the client

must be informed of the existence of the

procedure and that a copy is available

on request.

The IRRV’s Benefits Advisory Service is the essential tool to navigate through the current changes in benefits and provide vital support in managing these transitions. This service comes at an annual rate of only £495.00* (+VAT) per organisation.

Your Subscription Includes:

•�� Electronic copy of ‘Benefit’ magazine•�� �Resource Centres for Council Tax Reduction Schemes,

Housing Benefits and Universal Credit•�� �Discounts at Institute conferences, professional meetings

and training courses•�� A regular alert informing about important developments•�� Free access to HB online training programmes•�� Access to a Technical Enquiry Service•�� Free webinars•�� Free access to Jobs Online

Please visit www.benefitsadvisoryservice.org.uk to view the wide range of themes covered and to subscribe.

* the subscription year runs from 1st April to 31st March and is calculated on a pro rata basis

IRRV Benefit Advisory ServiceIRRV Benefit Advisory Service

Contact membership@irrv.org.uk to take out your subscription

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It’s a funny old world

Isn’t it amazing how things come around in

cycles. In my authority, we are at present trying

to boost the valuation list, and one of the areas

that we are looking at is stables – this seems to

cause much conflict, especially when the stables

are being operated for personal use.

I have come across an article in the

Hartland and Westcountry Chronicles

from 1913 which refers to the use of stables

in this area at that time:

‘At Bideford County Sessions on Tuesday 7th,

Mr H. Ascott JP of Bideford was summoned for

failing to pay £2.0s.6d. poor rate in respect of

stables at Clovelly. Jas. Lott, Assistant Overseer,

said in reply to his demand that Mr Ascott wrote

that the stables had not been occupied since

Michaelmas, 1912, and were exempt from the

last half year’s rates.

In the stable loft, however, there was a cask

used for chaff, two portable mangers, and a

corn chest. There was also a shed occupied by

Martin Reader’s research proves that what comes around goes around

Martin Reader is NNDR & Income Team Leader

with Torridge District Council. Contact him on

martin.reader@torridge.gov.uk

carriages during the qualifying period. He told

Mr Ascott of this, and he wrote in reply that he

had better sell the carriages for the rates.

“Mr Ascott, whose carriages were they?”

“I cannot say that.”

Mr Ascott said he had no horses or carriages in

Clovelly during the time for which the rate was

claimed, and whoever had occupied it, it was

no affair of his. The carriages did not belong to

him, and he wrote Mr Lott telling him he had

better sell them for the rates.

John Beer said the chest and two portable

mangers were left in the stable all through the

year. He had seen the carriages, but did not

know to whom they belonged.

Mr Ascott said he ceased to occupy the

stables in September and until June, and was

therefore not rateable. He was a yearly tenant.

The bench held that Mr Ascott was liable, and

made an order for payment.’

In the last Autumn Statement, reference

was made to pensions and the pension age

increasing. Back in 1913, the government of the

day led by Lloyd George introduced the Old Age Pension Bill, and the pension was at the

rate of five shillings per week.

This was also published in the Hartland

Chronicles at the time:

An old woman in Caernavon was coming

from the post office with her five shillings when

she met the squire who taunted her with,

“I suppose Lloyd George will build you a railway

direct to heaven next?” She responded, “I don’t

know about that, but he has certainly made the

waiting room much more comfortable!”

IRRV Annual Conference 2014

For conference information please contact conference@irrv.org.uk or call 020 7691 8987

The IRRV Annual Conference (and exhibition) will be in held at the Telford International Centre from the 7th to 9th October 2014. Tuesday will again consist of plenary sessions with Wednesday having three distinct streams; these being Local Taxation & Revenues, Welfare Reform and Benefits and Valuation. Thursday morning will provide delegates with a general update on everything happening within the Profession.

The Performance Awards Gala Dinner will held on the Wednesday evening. In recent years, this event has been oversubscribed so early booking is recommended. Full details of the scheme can be found on the IRRV Web Site:

www.irrv.org.uk

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Members are invited to contribute towards the feature and come forward with their own personal

memories of the Institute. The Deputy Chief Executive is also happy to try and answer any questions

on the Institute’s history. In addition, copies of previous articles can be provided on request.

Please contact him on gary.watson@irrv.org.ukGary L Watson IRRV (Hons) is

Deputy Chief Executive of the Institute

From the

“ It was agreed that until any membership is lapsed, all members should receive a copy. This may then encourage them to pay their annual subscription – could be worth a try this year! ”

It’s an unprecedented fourth part to the affairs of the Institute in 1894 – there was a lot happening, as Gary Watson discovers!

The Executive Committee met again at

Freemasons Hotel, 64 Cheapside, London, on

27th October. The minutes from the meeting

on 29th September were agreed, and members

went on to discuss the financial issues of the

Association. The Honorary Secretary reported

that in the past month, subscriptions amounting

to £5 had been received; an equivalent sum

also being received for the benevolent fund. A

further sum of £3. 5/- (by cheque) had also

been placed in the benevolent fund account.

The available balance now in the Association’s

account stood at £12. 9/11.

Apologies for absence from the meeting

(conveyed by letter) were then read out to those

in attendance. A further letter from the relative

of Mr Willis (Whitechapel) was then read, stating

he was anticipating his likely removal from

the position of rate collector, with only slight

remuneration. This was simply noted, as was

a further letter from Mr Tunstell (Kensington),

who returned the guinea lately voted to him for

expenses incurred under the Registration Bill.

One final letter (no emails back in 1894!)

was then laid before the Committee from Mr

Cook (St. Georges) which suggested that the

Executive give their support to the idea of

superannuation for rate collectors in the same

way as the Poor Law Officers’ Association was

doing. Committee resolved that a letter be sent

to Mr Cook confirming that when the matter in

question was sufficiently mature, the Executive

would be prepared to give support.

The Poor Law Officers’ Association had

been founded in 1885 (three years after the

Metropolitan Rate Collectors Association) and

existed in its own right until it merged with

the National and Local Government Officers’

Association (NALGO) in 1930. NALGO itself

had been established in 1882 (we were first!),

and there had been attempts in the early days

to see the Association merge with NALGO.

However, it was generally felt NALGO was

a union of lower grade clerical officers with

whom more highly paid collectors would not

wish to be associated. I make no comment!

The letter to be sent to collectors beyond

the Metropolitan Area (as drafted by the sub-

committee) was then discussed and agreed. It

was resolved that 24 copies be obtained and

forwarded to each member of the Executive for

suggestion and alterations. The recommendations

of the sub-committee for the annual dinner (date,

venue, ticket price, musical arrangements) were

also agreed, and Mr Madge (St.James) promised

to provide a grand pianoforte (aka a piano!) at his

own cost. Mr Goddard was also extended a ticket

on the condition he again takes on the position of

toast master. This was agreed, as was the request

that the Honorary Secretary draft the annual report

for consideration by the Executive Committee at

their next meeting on 1st December.

The sub-committee met briefly before the

meeting on 1st December to agree the draft letter

to collectors beyond the Metropolitan Area, and

to consider the draft annual report. The Executive

Committee then congregated and began by

agreeing the minutes from the meeting on 27th

October. The Honorary Secretary reported there

was no change in the bank balance since the

last meeting, although a further 10/- had been

received for annual subscriptions. Quite where

that was paid into, one does not know.

It was then the Honorary Secretary’s duty to

read the list of those members who had not

paid their annual subscription. Messrs Pakes

and Perryman, both Executive Committee

members, were amongst the delinquents. It

was agreed that both gentleman be issued with

one final request for payment, and should it

not be forthcoming, their name be erased from

membership of the Association and they be

removed from the Executive.

The Honorary Secretary then reported

that the annual audit of the accounts would

take place on 8th January 1895 at his office.

Clarification was sought as to whether the

annual report should be sent to those that had

not yet paid their annual subscription. It was

agreed that until any membership is lapsed,

all members should receive a copy. This may

then encourage them to pay their annual

subscription – could be worth a try this year!

A draft letter to collectors beyond the

Metropolitan Area was then considered and

generally approved (presumably that means

there were some changes), and it was agreed

this would finally be sent. Mr Mills promised

to lend the Honorary Secretary his copy of

the Local Government Directory (he wanted it

back, though) for the purposes of supplying the

relevant names and addresses.

The Honorary Secretary then reminded

members that in accordance with Rule 4,

he should be supplied not later than the

second week in December with names of

representatives that were looking to be part

of the Executive in the coming year. The draft

annual report was then considered, and having

made some slight alterations and amendments,

it was generally approved – still not categorical

approval. 300 copies of the report were to be

sent to members of the Association.

The final duty of any year was to then agree

the arrangements for the AGM and annual

dinner. The AGM was to take place on Saturday

26th January 1895 at 5.00pm. This was to then

be followed by the annual dinner at 6.30pm,

allowing little or no time to get ready for the

black tie event! With it being a ‘gentlemen

only’ event, presumably little or no time was

actually needed, and many will have taken the

opportunity to dress for dinner prior to attending

the AGM. Only those attending the Arsenal

v Burton Wanderers game that afternoon (it

finished in a 1-1 draw, by the way) would have

experienced a problem in getting dressed for

the events that afternoon/evening – unless, of

course, they got changed before the match.

The meeting then concluded with the next

Executive Committee meeting being agreed as

12th January 1895.

Lifting the lid on valuations

Moira Hepworth is the Institute’s Policy and

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Faculty Board report

is considered necessary to allow the Welsh

Ministers to amend the 1992 Order so that

properties which are classed as emergency

accommodation and consist of a number

of self contained units are treated as one

dwelling for council tax purposes. Practitioners

considered this proposal to be uncontroversial,

and thus no formal response was submitted.

As I reported in the last LTR Faculty Board

round-up, there has been consultation

in England on reforms to the business rates appeal process. The proposals in

the consultation paper sought to improve

transparency in the valuation process in order

to give improved confidence in rateable values.

They also sought to bring business rates into

line with other systems, by requiring ratepayers

to provide with their challenge an explanation

of why they think the rateable value is wrong.

The Institute response supported the

proposal that the Valuation Office Agency (VOA) should provide rental evidence prior

to the challenge process, because it is an

important principle that taxes are transparent

in order to demonstrate their fairness. The

point was made that the provision of rental

evidence should include any adjustments

made to the contractual rents to arrive at the

figures used for rating valuation purposes. The

reason for adjustment should also be included.

The response expressed concern that

the constraints of the Commissioners for

Revenue and Customs Act 2005 will limit the

information provided by the VOA and therefore

not achieve the aim of allowing ratepayers or

their agents to check the underlying values

without a formal challenge.

Until 1990, rating authorities had the

right to make proposals and be included in

agreements on appeals as an ‘interested person’. These rights disappeared in 1990

with the introduction of the national non-

domestic rates system. The response urged

that these powers are returned to billing

The Institute, through its Scottish Association, has provided comment on

consultation about how the Home Report is currently working after five years of operation.

Since late 2008, the majority of houses for

sale in Scotland must have a Home Report

when they are put on the market. The Report

includes a survey assessment of the condition

of the home, a valuation, an energy report

and a property questionnaire, the latter

which is completed by the seller. The Report

also contains additional information about

the home, such as council tax banding and

factoring costs, that will be useful to buyers.

The IRRV response supported the idea

of establishing a national register of Home

Reports. The resource could be a good tool for

the Scottish Assessors for assessing council

tax bands on sale of properties. This would

be of particular interest where alteration work

has been carried out without any permission

being required. The availability of such

questionnaires online would enable Assessors

to review the details of sold houses, thereby

alerting them to any possible alterations which

are required to be considered on the sale

of any dwelling. Access to such information

could improve the time taken to re-assess

council tax bands for new owners. As more

leeway is given for building work to be carried

out without the need for building/planning

warrants, the more difficult it is for Assessors

to maintain an accurate council tax list.

The response also suggested certain small

amendments to the property questionnaire,

such as having the date of replacement,

alteration, addition or extension stated by the

seller under each heading, and providing the

date of installation of central heating or the

age of the system.

The Welsh Government recently issued

consultation on amendments to the Council

Tax (Chargeable Dwellings) Order 1992 for

emergency accommodation. The change

authorities, to enable them to participate fully

in ensuring the fairness and equitability of the

rating system. If localisation is to work, then

local authorities need this power in order to

ensure fairness to all ratepayers.

The Institute response agreed that ratepayers,

or their agents, should provide with their

challenge sufficient detail of why they consider

the rateable value to be incorrect such that the

VOA may reasonably consider their challenge,

plus any evidence they are relying on to support

their challenge. However it was supported only

on the basis that adequate disclosure of rental

evidence by the VOA is also in place.

IRRV supported the approach whereby

the ratepayer would first make a proposal

to amend the list, and the VOA would then

consider its validity and issue a decision

notice. Billing authorities should also have the

right to make proposals, and to receive copies

of all proposals made to amend the list, and all

decision notices relating to those proposals.

The response supported the proposal for

a three month time limit for the VOA to issue

a decision notice, but expressed concerned

that the VOA must have adequate resources

at the right level in order to achieve this. The

determination of what constitutes ‘exceptional cases’ must not become a method by which the

overall three month target can be ignored.

Support was given for a general twelve month

time limit to exchange information and come to

a conclusion, but only if there is an exceptional

hardship provision and the ability to agree to

extend negotiations beyond twelve months.

Finally, support was given to the provision for

further appeal to the VT being limited where a

decision notice has been issued, but the two

month time period was considered to be unfair

and unreasonable, given that legal advice may

be required in complex cases. The view taken

was that at least six months should be allowed.

“The proposals in the consultation paper sought to improve transparency in the valuation process in order to give improved confidence in rateable values.”

It’s the turn of the Institute’s Local Taxation and Revenues (LTR) Faculty Board to grab Moira Hepworth’s attention this month

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Have we finally achieved some clarity in terms of company voluntary arrangements? Ever since the case of R (Mohammed) v London Borough of Southwark [2009] EWHC 311 (Admin) , there has been a

small but select group of practitioners that

have continually argued that the Insolvency

Service has been incorrectly interpreting the

insolvency legislation with regard to council

tax and national non-domestic rates (NNDR),

specifically in relation to the treatment of

‘contingent liabilities’. Despite protestations

from a number of different sources, the

Insolvency Service has continued to issue

technical guidance stating that the correct

treatment is to apportion the debt pre- and

post-insolvency. To many practitioners, this

was in direct conflict with the decision in

Mohammed, and has led to a significant

level of confusion and differing approaches

in recent years.

However, thanks to the recent case of

David Norman Kaye (as supervisor of Certain Exhibitions Limited – in Company Voluntary Arrangement) v South Oxfordshire District Council and Certain Exhibitions Limited [2013] EWHC (Ch) , it seems that the matter has

finally been clarified, to the extent that the

Insolvency Service has amended its technical

guidance. It is fair to say that it is apparent

from the transcript that the council in this case

had quite reasonably relied on the original

technical guidance from the Insolvency Service

in approaching the case as it did.

The case involved the treatment of

NNDR in relation to a Company Voluntary Liquidation (CVA), but His Honour Judge

Hodge QC also stated that it seemed to

him that it would be equally applicable to

liquidation or personal bankruptcy.

In basic terms, the question before the

court was to determine what debt is provable

when a company enters into a form of

insolvency. The facts of the case are that the

company entered into a CVA on 10th July

2013. The day after, South Oxfordshire District

Council (SODC) issued a reminder notice for

missing instalments. In the meantime, SODC

submitted a proof of debt, in accordance

with the (current) advice from the Insolvency

Service for the balance of NNDR due from

1st April 2013 to 10th July 2013, thereby

apportioning the liability as advised by the

Insolvency Service. The supervisor of the CVA

disputed this, stating that since the liability

had commenced on 1st April 2013, the whole

year’s liability should be provable in the

CVA, despite the fact that the right to pay by

instalments had not been forfeited at the time

of the CVA.

Since this position was not accepted by

SODC, the matter proceeded to the High

Court for a decision. His Honour Judge Hodge

QC examined both the NNDR legislation and

the Insolvency legislation. He specifically

referred to Insolvency Rule 13.12(1)(b) , which defines a debt as including ‘…any

debt or liability to which the company may

become subject after [the date of the relevant

insolvency event] by reason of any obligation

incurred before that date.’ He confirmed

that by virtue of Insolvency Rule 13.12(3) it

is immaterial whether that debt or liability is

present or future, or whether it is certain

or contingent.

From this, the Judge determined that the

provable debt in insolvency was the whole liability for the year, not purely the debt

that had become due at the time of the CVA,

liquidation or bankruptcy.

The effect of this decision cannot be

understated. As His Honour Judge Hodge

stated at the beginning of his judgment, “…I

have to decide a short but important point

of law concerning the incidence of business

rates in a company voluntary arrangement.

Although the instant case relates to company

voluntary arrangement, it seems to me that

similar considerations would apply in any form

of corporate insolvency, including liquidation.

This decision is, therefore, of potential interest

to all insolvency practitioners and billing

authorities for business rates.”

The obvious effect is the creation of a

council tax or business rate ‘holiday’ for the

whole year within which a form of insolvency

occurs. There are exceptions that practitioners

should note. Firstly, contingent liabilities are

not provable debts for Debt Relief Orders, and

as such remain unaffected. Secondly, in joint

and several liabilities, other liable parties are

unaffected and remain liable for the whole

amount, irrespective of it being proved in

relation to someone else. In simple terms,

if a husband goes bankrupt, the whole liability

will be submitted into the insolvency, but the

wife will remain liable for the whole amount

as billed.

The question will be whether this starts to

be ‘sold’ as a benefit to going into insolvency.

I am already aware of one website which

quotes it, and suggests waiting until the new

financial year before filing for bankruptcy or

liquidation. We will simply have to wait and

see what effect it has on levels of write off.

On a final point, most cases produce a

winner and a loser, but in this case, whilst the

decision went against SODC’s argument, His

Honour Judge Hodge actually confirmed that

in light of the guidance received to date, SODC

was justified in attending and participating

in the proceedings, and he made an order

that both sides’ costs should be treated as an

expense of the CVA.

“From this, the Judge determined that the provable debt in insolvency was the whole liability for the year, not purely the debt that had become due at the time of the CVA, liquidation or bankruptcy.”

Alistair Townsend FIRRV MCMI is Revenues

and Benefits Service Delivery Manager with

Milton Keynes Service Partnership and a

member of the IRRV’s national Council

Revenues roundup

...Alistair Townsend thinks so

Valuation matters

Valuers’ Association Monthly Page

V@MP

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include a self-catering holiday unit (RV £62,500)

in the 2005 List by VO alteration in March 2011.

It had previously been omitted from the list in

error. Go to: http://www.landstribunal.gov.uk/

judgmentfiles/j1022/RA-12-2013.pdf.

Business Rates Information Letter BRIL 4/2014 gives guidance on reoccupation relief on

empty properties, and the interest rate details.

Go to: https://www.gov.uk/government/uploads/

system/uploads/attachment_data/file/300204/

BRIL_7-2014_-_Interest_Rates_-_31_Mar.pdf.

DCLG consultation closed in March on ‘Checking and challenging your rateable value’, and

the Department’s proposals are awaited.

The Rating Surveyors’ Association (RSA) held its AGM and Members Dinner on 7th April

at the Army and Navy Club in Pall Mall, at which

the new President, Ken McCormack, took over

from outgoing President Andrew Hetherton. The

RatingRefurbishment – the Upper Tribunal of

the Lands Chamber decision in S J Monk v K

Newbiggin VO has been published, concerning

offices in a floor of a Sunderland Office block

undergoing refurbishment which included

substantial stripping out. The Tribunal determined

that the property was incapable of beneficial

occupation, and the assumption of a state of

reasonable (economic) repair in this case did

not apply. The assessment was reduced from RV

£102,000 to RV £1, and described as ‘building

undergoing reconstruction’ at the material date

of 2012 proposal, but with an effective date of

1st April 2010, as it was in a similar state then.

Go to: http://www.ratingsurveyorsassociation.

org/downloads/Monk%20v%20Newbigin%20

%28VO%29%202014.pdf.

Backdating – the Upper Tribunal determined in

BMC Properties & Management Ltd v D Jackson

VO that the 2009 regulations allowed the VO to

RSA House of Lords Reception is set for 20 June,

and the Guest Dinner for 23 October.

Administration of business rates in England: discussion paper – this important

document produced by HM Treasury and DCLG

has recently been published, and responses

are required by 6th June 2014 (D-Day

commemoration day!), to be forwarded to

businessrates.review@hmtreasury.gsi.gov.uk.

The link to the publication is as follows:

https://www.gov.uk/government/uploads/

system/uploads/attachment_data/file/302634/

PU1623_administration_of_business_rates_

discussion_paper.pdf.

Northern Ireland – the date for the IRRV’s

Northern Ireland Conference has been set as

11th September 2014.

Scotland – the IRRV’s June Valuer Day is selling

fast – go to www.irrvscotland.org.uk to book.

Geoff Fisher introduces the latest compilation of Valuers’ Association snippets

Geoff Fisher FRICS Dip. Rating, IRRV (Hons) REV is a Past President of the

IRRV, and a member of the Institute’s Professional Conduct Committee

General Practice (Don’t forget that the

Institute’s Valuers’ Association covers general

practice, including valuations for taxation, statutory

compensation and compulsory purchase).

CPO road widening, part land, taken/betterment – the Upper Chamber of the

Lands Chamber determined compensation

in Ramac Holdings Ltd v Kent County Council

awarding £67,000 compensation for land taken,

disturbance and pre-reference costs. Go to:

http://www.landstribunal.gov.uk/judgmentfiles/

j1025/ACQ-91-2011.pdf.

The Compulsory Purchase Association (CPA) National Conference is being held on

10th June at Moorgate Place, London EC2. Go to:

http://www.compulsorypurchaseassociation.org/

cpa-conference-2014.html.

The National Planning Policy Framework and Planning Guidance website has

been launched on http://planningguidance.

planningportal.gov.uk/.

European Valuation Standards 2012

(produced by TEGoVA) is now available in eight

languages – German, Greek, Hungarian, Italian,

Lithuanian, Serbian and Spanish, as well as English.

Go to: http://www.tegova.org/en/p49a908c263201.

Olympic legacy – Queen Elizabeth Park opens!April saw the opening of the

southern part of the Park –

the north section opened in

September 2013. Check out

the following links to progress:

• No more security fences:

http://queenelizabeth

olympicpark.co.uk/the-park/

plan-your-visit/park-map

• See the Orbit tower:

http://arcelormittalorbit.com/

• Aquatic Centre:

http://queenelizabeth

olympicpark.co.uk/the-park/

venues/aquatics-centre

• The main Olympic stadium, soon to be the

new home of West Ham Football Club:

http://queenelizabetholympicpark.co.uk/the-

park/venues/the-stadium

• The new parkland all laid out, next to the

Westfield Stratford Shopping Centre, the

fifth largest urban retail centre in Europe:

http://uk.westfield.com/stratfordcity/.

The legacy also includes new housing

developments on parts of the site – the first is

Chobham Manor, which you can see on

http://chobhammanor.co.uk/. You can get a

bird’s eye view of the future for the Park on

http://queenelizabetholympicpark.co.uk/3d-

view-of-the-park.

Photographed is the Queen Elizabeth Olympic

Park (photo by author).

Valuation matters

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Composite properties

RATING LISTS 2010RATEABLE VALUE Annual Value as defined by

Sch. 6 LGFA 1988 Valuation date 1st April 2008

Material Day 1st April 2010 (compiled lists).

NOT ASSESSED FORRATING OR COUNCIL TAX

Student accommodation,

private garages & private

small stores, etc.

COUNCIL TAX LISTS 1993 & 2005 (WALES)BANDING Relevant amount Freehold (or

99 year lease), capital value 1992 Reg. 550 –

basis of valuation Val. date 1st April 1991

(Wales – 1st April 2003).

NON-DOMESTIC HEREDITAMENT Para.2(1A) Schedule 6 LGFAct 1988.

Wholly used for non-domestic purposes. NB –

includes provision of short stay accommodation

– Sec. 66(2) LGFA 1988.

NB Sec.5 LGFA 1988

– ‘Property not in use is

domestic if it appears

that when next in use it

will be domestic’.

DOMESTIC HEREDITAMENTSec. 60 (1) (a) LGFA 1988 ‘If it is used wholly

for the purpose of living accommodation.’

+ Sec. 3 LGFA 1991.

COMPOSITE HEREDITAMENTS Sec.64(9) LGFA 1988. ‘A hereditament is composite if part only of it consists of domestic property”

NB – there is only one hereditament: not a non-domestic hereditament and a domestic dwelling,

e.g. shop & flat, live work units, property guardians, holiday accommodation, farmhouse/farm, hospital/hostel.

NON-DOMESTIC (COMPOSITE) – hereditament marked ‘C’ in Rating List.

NOTIONAL PART OF OCCUPATIONPara 2(1A) Sch. 6. Rateable value for the whole hereditament,

apportioned to that which ‘would reasonably be attributable to the

non-domestic use of property’.

NOTIONALITY

– valuation by reference to ‘general patterns of use’.

DOMESTIC (COMPOSITE) – DWELLING– marked ‘C’ in Council Tax List.

NOTIONAL PART OCCUPATIONCapital value of the whole hereditament, apportioned to that which

‘would reasonably be attributable to the domestic use of property’

Regulation 7(2).

NOTIONALITY

– valuation by reference to ‘general patterns of use’.

NB - rating composites were introduced under the LG&FA 1988 when Community Charge (Poll Tax) was introduced as a tax. Council Tax

composites were introduced under the LGFA 1992, which brought in Council Tax to replace the Community Charge.

REFENCENCES: Principles and Practice of Rating Valuation (3rd Ed.) P H Bond and P K Brown – Pages 48-51 on composites

Ryde on Rating and Council Tax (14th Edition) Issue 64 (various contributors)

IRRV Business Rates – Your Guide http://www.irrv.net/publications/publication.asp?Pid=296&Webarea=Rating and

Rating Law & Practice http://www.irrv.net/publications/publication.asp?Pid=298&WebArea=Rating

VOA GUIDES:Working at or from Home (Council Tax & Business Rates) http://www.voa.gov.uk/corporate/Publications/workingFromHome.html

Guide to rating of guest houses, B&B, etc. http://www.voa.gov.uk/corporate/Publications/guestHousesandBasicAccommGuide.htmlStables – Rating or Council Tax? http://www.voa.gov.uk/corporate/Publications/Non-Domestic-CouncilTax-Stables.html

VALUATION TRIBUNAL:Valuation Tribunal Council Tax Manual P11, 13, 19, 23, 32, 36 http://www.valuationtribunal.gov.uk/Council_Tax/ct_guidance_manual.aspx

VOA RATING MANUAL REFERENCES http://www.voa.gov.uk/corporate/publications/Manuals/RatingManual/ratingManual.html RM Vol 4: Sec. 9 Composites (incl. ‘notionality’).

Practice Note 6.

Appendix 21 Action Sheet NDR.

VOA COUNCIL TAX MANUAL REFERENCES http://www.voa.gov.uk/corporate/Publications/Manuals/CouncilTaxManual/toc.html App. 1.6 Managing the Council Tax/NDR borderline (CT).

Practice Notes 1 and 2 Basis & valuation of composites.

Practice Note 8 Domestic/non-domestic borderline.

Geoff Fisher provides an introduction to composite properties – the non-domestic/domestic borderline

Kevin Stewart FIRRV MAAT MCMI is Change

Team Leader with Luton Borough Council’s

Luton Excellence Team, and Institute Senior

Vice President18

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Cover story: Part One

has accordingly appointed temporary staff

to maximise new business rate income, and

installed new software.

The section is also leading on the

internalisation of the bailiff service. The

new bailiff regulations and fee structure are

seen as an opportunity by Luton to bring the

enforcement of unpaid debts owed to the

council back in-house. This will obviously

need to be closely managed, and at the time of

writing not all the new regulations have been

approved by the government. But Luton wants

to be fair and firm to its non-payers, and at

the same time will be looking to introduce a

fair debt collection policy to be applied

in all recovery matters, that will help protect

further the vulnerable in our community.

In addition, Luton continues to innovate

with the use of new technology. We can

automate the processing of information

received from debtors and others, such as

authorised third sector partners.

The council‘s revenues service is also

maintaining its improved performance in

2013/14. This year, as any revenues employee

will know, is one of the hardest to benchmark,

with new council tax reduction schemes

introduced, new local discounts, and the

ability for payers to pay over 12 months. This

is evidenced by benchmarking data collected

on a monthly basis – I chair a benchmarking

group of authorities’ revenues collection

figures across eight counties, and collate

the statistics within the group. Council tax

It’s transformation all the way in Luton

PART ONE

Luton Borough Council’s revenues service

is open for business! The service has seen

continuous improvement since 2007/08,

when it collected just 92.4% of council tax.

In 2012/13 its collection rate was 96.2%, an

improvement of 3.8%. But it ’s not just about

the improvement in the collection rates.

Luton is transforming its delivery of service in

innovative ways, and the revenues section is

no exception. It is not only working to build on

its improvement, but wants to offer its services

to others too through its Luton Traded Services arm.

Already the section offers an aged debt service where, for a percentage fee, it will

collect outstanding arrears on behalf of external

organisations, including other authorities.

So, if your organisation is thinking of writing

off a debt for council tax, business rates

or housing benefits, or if you do not have

enough resources to tackle your outstanding

debt, please give Clive Jones of Luton Traded

Services a call on 01582 546450, email him

at clive.jones@luton.gov.uk, or check out

www.lutontradedservices.com. If we are

not successful, you pay nothing – and if we are

successful, you will be writing off far less debt.

What have you got to lose!

We are also looking to build the traded services arm for revenues, benefits and customer

services, and we plan to offer more solutions to

help other organisations in the future. The council

is also exhibiting at the IRRV’s Local Taxation and Enforcement Conference.

Performance of Luton Borough Council’s

revenues service was correctly perceived to be

poor in the past but under the current head of

service, Sue Nelson, has been transformed.

Luton, shortlisted for the LGC’s Most Improved

Council of the Year award, is an innovative

and ‘invest to save’ authority. Where it does

invest, Luton rightly wants to see a return, and

collection is generally down compared to the

same period in the last year. Luton though is

holding up on its council tax collection, and

at the end of February 2014 there was an

increase of 0.3% on last year’s all-time high

for the borough.

The service has also collected £4.8m of

business rates arrears to the end of January

this year – well ahead of its target of £2.3m.

As with the collection of council tax, we are

using innovative ways of contacting people or

businesses owing money. We will send SMS

text messages or contact anyone owing money

out of normal office hours.

We also know that to deliver a good

service we need to invest. Our workforce is

a vital ingredient, and the council is currently

investing in five staff from across the division

of revenues, benefits and customer services

who are undertaking IRRV studies for the level

three certificate, to heighten joint working and

continue our quest for transformation and

excellence. It is important that knowledgeable

staff not only deliver a better service to the

residents of Luton, but also that any services

we offer to help others will be assisted too.

Luton is keen to build on its achievements

to date, and aims to continue to transform

service delivery to the benefit of all.

“ Luton wants to be fair and firm to its non-payers, and at the same time will be looking to introduce a fair debt collection policy to be applied in all recovery matters, that will help protect further the vulnerable in our community.”

...and the improvements are on show for all to see and share in

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PART TWO

With low property values and a depressed council tax base, Luton’s heavy reliance

on central government grant has made it

particularly vulnerable to Whitehall spending

cuts. Yet despite an enforced budget reduction

of almost £60 million – nearly a third in just

three years – a major negative impact on front

line services has been largely avoided.

Indeed, many services have improved, with the

council winning or being shortlisted for a number

of prestigious national excellence awards.

How come? The answer lies in an intense,

rapid transformation that has at its core a

substantial investment in ‘lean management ’ culture change, and detailed preparations for

significant government grant reductions since

early 2010.

Both have been led by the council’s Luton Excellence team (LEX), which has helped

find substantial efficiency savings from

smarter working, and demonstrated the true

value and cost effectiveness of having change

management expertise in-house.

Luton councillors wanted transformation and

savings targets to be delivered using existing

internal resources. They favoured building up

capacity, ownership and drive, culminating in

a substantial change programme right across

the authority, embedded in the work of

every department.

Members were also clear that budgetary

‘salami slicing ’ was not a viable,

sustainable option. Instead, a co-ordinated,

customer focused ‘lean’ approach was

considered the only way to avoid a huge risk

of failing services.

The LEX team was originally set up to

streamline working methods, improve

customer service and deliver best value

services, efficiencies, cost avoidance and

cashable savings. Since 2010 its role has

been to lead and co-ordinate Luton’s total

transformation – including the delivery of

the further £69 million savings likely to be

required by 2017 – and to drive performance

and strategic thinking across the piece.

Achievements include a review of external

contracts, with over £3m saved to date,

sickness driven down and productivity up,

the launch of a new performance appraisal

system and competency framework, a

restructuring of senior management that saved

£500k, and another £1.5m saved by reducing

reliance on overtime and agency staff. Estates

rationalisation and ‘agile’ working will claw

back a further £2m pa.

Meantime, the council’s customer contact centre has dramatically cut queue times and

telephone answer rates, while the benefits team has slashed processing times from 31

to ten days, with a 48 hour turnaround for

‘fast track ’ claims.

Financial assessment services have

been remodelled into a single team, increasing

productivity, delivering £120,000 savings, and

increasing free school meal take-up.

Right across the organisation, a wide range

of other substantial service improvements

have been delivered, including refuse

collection, adult social care and passenger

transport, noise nuisance and licensing.

LEX are now leading improvements to the

council’s digital offering, and developing new,

more convenient and cost effective ways for

citizens to find information and get tasks done.

This is just a snapshot of progress to date.

We are far from complacent – we remain

acutely aware of the huge impact of further

budget reductions that will be demanded by

central government over the next two years

and beyond.

Inevitably, some adjustments have had to

be made. It has been necessary to reduce

some environmental services from a ‘gold

standard’ to a more affordable ‘silver service’, and priority budgeting has led to

the Luton Cultural Trust deciding to close

two branch libraries. Yet, at the same time,

Luton has been able to buck the UK trend by

retaining its network of children’s centres.

By continuing to transform itself, the

authority has maximised its chances of

remaining sustainable, in spite of the toughest

financial climate since the 1940s, and it

continues to place customers and citizens at

the heart of everything it does.

By 2015 we will be a completely changed

organisation, delivering services in totally

different ways. There is no doubt that public

spending cuts have had an impact and will

continue to squeeze services. But in Luton

the council is determined that this will be a

strategic and managed reduction, one that

will consider other means of delivery and that

continues to minimise the negative effects on

the most vulnerable in our community.

“ Members were also clear that budgetary ‘salami slicing’ was not a viable, sustainable option. Instead, a co-ordinated, customer focused ‘lean’ approach was considered the only way to avoid a huge risk of failing services.”

Rik Hammond is Transformation

Communications Lead with Luton Borough

Council’s Luton Excellence Team

Cover story: Part Two

20

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Back office processing

on undervalued and missing property, with the

minimum impact on council resources.

“It is clear that councils need to improve

their ability to forecast future levels of NNDR

yield, which requires a greater depth of

knowledge of the existing position, and to

have the information available to project more

accurately into the future. We recognised the

support and insight that Analyse LOCAL could

provide in facing these challenges, and signed

up to their service,” comments Calvin Orr, Chief Technical Accountant of Bracknell Forest

District Council, adding, “We fully expect

the system to more than pay for itself... It is

certainly a significant step forward from the

spreadsheet analysis we were limited to using

with the information provided by the VOA and

our own internal systems.”

The level of appeals outstanding is not

the only impact on losses, as new appeals

continue to be received, together with tonal

changes applied by the VOA. Analyse LOCAL

allows for continual analysis of the evolving

appeals list, and goes that extra mile to monitor

changes made to the valuation schemes within

the area. This all goes to ensure that authorities

are in the best position to make the necessary

financial provisions and provide an extensive

audit trail to validate their findings.

Adrian Wood of Oxford City Council says,

“Working in Finance, I had major problems

attempting to estimate the potential rating

income loss due to outstanding rating

appeals. In Oxford we have a considerable

number of appeals still outstanding – many

will have an effective date of April 2010,

and a few even go back to the 2005 List.

Regrettably our software company was unable

to assist. The Valuation Officer will supply

lists of appeals that remain outstanding, but

this leads to more questions than answers!

Analyse LOCAL has provided easy to

understand reports for both returns – the mid

year estimate for 2013/14 and the NNDR1 for

2014/15. They have also identified ‘high value’

Inform CPI and the IRRV: relieving the sting in the tail

Twelve months on from the introduction of the

rate retention scheme and the question that

we must ask is has the most been made of the opportunity? It sounds easy, and the

incentive in most councils is considerable –

keeping a substantial part of any extra rateable

value that is found. However, like most things,

the reality is rarely that simple, and rates

departments are tasked with finding this extra

income against a backdrop of ever increasing

pressure on resources.

For many, the sting in the tail of the

retention scheme has been the requirement

to produce accurate estimates of the potential

threat to rateable values. This has been made

even more difficult by last minute changes

to the reporting requirements of DCLG, and

further by the government pledge to clear

95% of appeals by July 2015. This news

will give little comfort when estimating the

potentially colossal effect on council finances.

These two areas of work are new territory

for many revenue practitioners, so the Institute

and Inform CPI Ltd have collaborated to

produce Analyse LOCAL, a unique online

system and professional support hub that

provides an up to date and independent

forecast of rateable value movement. It also

maximises a local authority’s Rating List by

providing relevant and validated information

hereditaments that are subject to appeal. The

reports give estimated potential losses liability

for both current and previous years. I have

used these as the basis for my returns. At least

when our NNDR outturn is audited, I will have

some basis to substantiate my entries.”

Through investigation of a wide range

of commercial databases and property

data sources, Analyse LOCAL identifies

missing properties in the 2010 Rating List,

and undervalued assessments, whilst also

monitoring for changes of occupier and

usage – all to assist the authority identify

inaccuracies in order to generate significant

and valuable revenues streams.

The system is provided in a user friendly

web portal, providing the analysis of

appeals in clearly formatted reports and a

case management system for identifying

undervalued assessments. Aimed at reducing

the impacts on the NNDR teams, Analyse

LOCAL gives the required support and training

to allow the system to become an integral and

functional resource available to the authority.

“The local install process was very simple –

it was all done in a single morning remotely.

The product is so simple to use. The on-site

training session was excellent, and we were

able to get going straight away.

“The appeals forecasts we have received

from Analyse LOCAL have removed the

concerns we had in trying to estimate

ourselves, and are proving to be accurate. The

procurement of the product is a ‘no brainer’. We have already recovered the cost of the

product in the first three months. We would

not be able to find the potential business rate

targets easily and quickly without RV finder.

This is an invaluable tool for the team,” said

Clive Jones, Income Manager at Luton BC.

Our unique position within the business

rates market means that Inform CPI is able

to offer independent expert advice on the

evaluation of specific proposals and appeals.

This feature, coupled with the RV Finder

“The Institute and Inform CPI Ltd have collaborated to produce Analyse LOCAL, a unique online system and professional support hub that provides an up to date and independent forecast of rateable value movement.”

Inform CPI and the IRRV’s groundbreaking income maximisation product is coming of age, as Paul McDermott explains

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functionality, means that clients will have the

best and most accurate information available,

and the opportunity to maximise retention and

therefore increase income under the scheme.

“Would it be a product that I would

recommend?” questions Colin Smith, Council

Tax and Business Rates Manager at Castle Point

Borough Council. “It would have to be yes –

I don’t see how an authority can lose out”.

Inform CPI is the leading supplier of rating

database software in the country, and by

working with the IRRV we are uniquely placed

to provide a combination of cutting edge

technology and expert rating consultancy.

Further opportunities have been enjoyed by

clients who are able to utilise the functionality

for freedom of information responses and

property asset management purposes.

The Analyse LOCAL clients are enjoying the

fruits of our RV Finder team’s expertise – they

have to date identified a potential £20m in

additional rateable value.

Over 70 local authorities – London

boroughs, metropolitan and unitary authorities

and district councils – are receiving weekly

updated online forecasts and validated

information about undervalued hereditaments

and properties missing from their Rating List.

Julie Smethurst, Revenues Manager at

Preston and Lancaster Shared Service, says,

“From the outset, the process of getting set

up was handled efficiently and professionally,

and we had a great deal of faith in the

expertise shown. Inform were fully committed

to ensuring that we had the product up and

running to assist with the completion of the

NNDR1, despite the very short timescale we

gave them. The training was detailed, and the

support and communication with our Account

Manager has been excellent on an ongoing

basis. The forecasting reports are very useful,

and provided us with the extra degree of

confidence in the appeals figures used in the

completion of the NNDR1 form, that had been

missing in previous years.”

These clients are clearly the market leaders

in utilising technology, and are targeting

growth without the need to pound the streets.

Analyse LOCAL clients will also have access

to exclusive training material and the

opportunity to take part in health checks

produced by the IRRV.

Paul McDermott is Director of Inform CPI

Limited and a member of the IRRV’s Council

“Aimed at reducing the impacts on the NNDR teams, Analyse LOCAL gives the required support and training to allow the system to become an integral and functional resource available to the authority.”

The last word goes to Nick Rowe, Head of

Revenues and Assessments, London Borough

of Hounslow, who says, “I have been very

impressed with the forecasting information

supplied by Analyse LOCAL. As it is updated

regularly, we are always able to provide

colleagues in finance with the latest position

– since the localisation of business rates, the

estimation of future yield and losses from

appeals has become a high priority for us. The

tool was particularly useful in the completion

of the NNDR1 return and the verification of

previous estimates made.

“There is also a drive in authorities to

maximise the NNDR base, and the accuracy

and detail of the information provided in

respect of missing properties from RV Finder

is extensive, and in many cases would not

have been identified using existing council

procedures or resources.”

Intelligent Rating Solutions

Business Rate Retention Analyse LOCAL will maximise your Authority’s business rate retention opportunities and therefore funding, by identifying;

•Properties that do not appear in the local rating list.

•Properties that are undervalued in the local rating list.

Forecasting Business Rate IncomeUtilising extensive property and rating information, Analyse LOCAL provides the most accurate forecast of business rate income.

For more information or to book a demonstration please call Max or Amanda on 020 7096 2500.

ALad-186-132.indd 1 02/04/2014 15:04

Collection & enforcement

Jamie Waller is CEO of JBW Group22

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agent visits. Incentivising an agency to collect

at the compliance stage will literally reduce the

amount of enforcement visits made across the

entire UK by around 60%. From the debtor’s

point of view, this is a ‘win-win’ situation, and

will involve less trauma and stress.

The consistency of fees across the industry is key, and so much so that CIVEA

has now writ ten rules into their membership

conduct to cover this. They will shor tly be

publishing new codes of practice and rules

in line with the new legislation, which all

clients that employ enforcement agencies

should read.

Another aspect of the legislation addresses

the behaviour of the enforcement agent. The regulations are intended to prevent

enforcement activity until the debtor has been

given the opportunity to seek advice and

guidance. An enforcement agent may visit on

any day of the week, including Sunday.

Regulations stipulate that where a debtor is

found to be vulnerable at the enforcement

stage activity, the fees will revert back

to the compliance stage. Use of data in

the management of vulnerable people is

particularly key during the compliance stage.

Enforcement agencies will need to have this

information integrated with their systems,

to ensure vulnerability is identified and

appropriately addressed as early as possible in

the process.

On 6th April 2014, the Taking of Goods Regulations came into force. These

regulations have been set out to address a

number of issues within the industry. Primarily

they are to simplify and unify the procedures

and fees, encourage early compliance, support

vulnerable debtors, ensure that enforcement

agencies are remunerated adequately, as well

as tackling the issue of aggressive enforcement

agents. There are a number of key changes

that I feel are of great importance.

The fair fee charging policy will enable

enforcement agencies to focus their efforts,

invest in data and tracing, and collect more

payments from debtors at an early stage. By

enabling the agency to make a sensible margin

for collecting a payment through the use of

various different means of communication,

i.e. outbound calling, texts, emails or

letters, it will mean less cases going to

enforcement agents that require a visit.

Enforcement agencies were naturally

incentivised to move to the enforcement stage

and to make more visits, as that is how the

fee structure worked. With every visit there

were increased costs. However, with the new

legislation, enforcement agencies are now

incentivised to collect the money faster, with

little or no visits, and therefore there are less

fees incurred by debtors.

A single enforcement fee will reduce

complaints by 50%. Nearly all registered

complaints have arrived because the debtor

does not understand the complex fee

structure. Simplifying this is a win for the

debtor, the enforcement agencies and the

client. Another key change is to the cost of the fees – if a debtor has five registered

debts, £75 can be charged five times, but not

the £235 enforcement fee for knocking on

the door – this becomes a one off payment.

Multiple cases have to be enforced at the

same time.

Payments collected at the compliance stage will save an average of 2.7 enforcement

It doesn’t mean that vulnerable debtors are

expunged of their liabilities, but they will

experience appropriate treatment of their

case. They will be offered advice directly,

and referred to the correct agency earlier in

the process.

With the new legislation, enforcement

agencies will need to be better set up around

how they use their data, intelligence and

insight. Generally, a significant proportion of

debtors have been seen before, and agencies

should know what contact methods and

times work best for each individual debtor, for

example, if they are a previous debtor we will

know they answer the phone at 10am on a

Tuesday. Effective use of intelligence will be

vital to recovery results, and those agencies

that are innovative, investment driven and

forward thinking will be steps ahead of

the others.

To summarise, this new legislation will

result in less complaints, fees and visits,

simplified processes, and schemes which

in turn will be better for debtors, clients, staff

and the advice sector.

“Nearly all registered complaints have arrived because the debtor does not understand the complex fee structure. Simplifying this is a win for the debtor, the enforcement agencies and the client.”

Everyone’sa winner...

Finally, a sensible piece of legislation that will actually reduce enforcement, is Jamie Waller’s view

Collection & enforcement

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Having hopefully demonstrated the

proportionality of the new fees, I must now

address those who would seek to undermine

the fees by requiring discounts or ‘kickbacks’.

In the course of the last five years, I have

had the privilege of meeting numerous

government ministers, members of parliament

and local politicians of all political colours,

and not one of them has voiced any support

for arrangements whereby clients receive a share of the enforcement fees. In fact

quite to the contrary – the practice has been

roundly condemned. This practice has of

course been criticised by DCLG, in its good practice guidance issued in May 2013, which

states at paragraph 4.7, ‘It is inappropriate

for authorities to receive extra payment or

profit-sharing from the use of bailiffs and the

charging of fees’.

This seems to be a clear and unequivocal

statement, and I fail to understand how any

local authority could seek to ignore this clear

instruction – or perhaps people are only being

mischievous when asking service providers

to discount the fees, or for their profit sharing

proposals. Any attempt to circumvent or

reduce the fees that can be charged under

the TCE provisions is contrary to the basis

on which the reforms were formulated. In

his report, the economist stated, “If the

proposed fee structure is to be successful,

it is important that creditors cannot use

contractual arrangements with EACs/HCEACs

in order to circumvent the level of fees. Whilst

contracts may specify quality and reporting

requirements, they should neither be able

to change the level of any of the new fee

structure fees, nor to challenge the right of the

EAC/HCEAC to collect those fees where they

are appropriately charged.” And furthermore,

“Similarly any attempts by EACs/HCEACs

themselves to obtain a competitive price

advantage by offering to reduce fees below

the fee structure level should not be allowed,

and competitive differentiation should be

made on quality of service alone.”

It is disappointing to read and be advised

that clearly flawed arguments are being

advanced to dilute the fees, and in particular

the order in which proceeds are distributed,

justified by the fact that the word ‘may ’

appears in the regulations. I have over the

years been disappointed at the lack of legal

method and rigour utilised by ‘experts’

when reviewing and commenting on bailiff

legislation and case law, but the comments

on the TCE regulations probably plunge

new depths.

The regulations are quite specific with regard

to the order in which the proceeds of an

enforcement power must be paid, when the

amount recovered is less than the amount

outstanding. The fact that in regulation 13 (3) of The Taking Control of Goods (Fees) Regulations 2014, the word ‘may’

is utilised, does not signify that this order of

payment is optional. A proper construction

of this provision is that ‘may’ is utilised, not

to indicate that the order of distribution

is discretionary, but reflects the fact that

there might not be sufficient funds to pay

the compliance fee, after any appropriate

deductions, and accordingly it would be absurd

to direct that the enforcement agent ‘must ’

recover the compliance fee, when there are

insufficient funds available.

The legislation is clearly intended to be

prescriptive, and any departure from the rules

on distribution could certainly be subject to

a challenge and review by the administrative

court. There is no provision for the compliance

fee to be paid, other than in the order

prescribed in the regulations, before the debt

and other costs and the explanatory note

confirms that payment of the compliance fee

has been deliberately prioritised, over payment

of the debt.

The same flawed interpretation of the

word ‘may’ is also being used with regard

to regulation 11 of The Taking Control of

Goods (Fees) Regulations 2014, this time in

respect of the fees chargeable when dealing

with multiple cases. It would be absurd if

the provision was ‘must’, in this context, for

the reasons stated above. This does not mean

that the provisions are discretionary. It is

disappointing that the clear and unambiguous

statements made by the MoJ, that the fees are

fixed and that any deviation from the published

statutory framework would constitute an ultra

vires charge, are being ignored.

Undermining the legitimate fees that

an enforcement business can generate

risks pushing businesses into aggressive enforcement strategies in order to remain

commercially viable – exactly what the reforms

are intended to address.

I would question why any well informed

client would think that it was appropriate to

encourage or demand that the legislative

fees are reduced, when those fees have

been established at a level to achieve a

sustainable enforcement profession – one

that is able to properly invest and provide the

quality service that clients should demand. Any

dilution of the legislative fees can only result

in a reduction in service levels, as suppliers

are forced to cut corners, and pushed to find

creative strategies to generate a sustainable

...says Paul Caddy, in the final part of his personal summary of the new enforcement regime

“It is disappointing to read and be advised that clearly flawed arguments are being advanced to dilute the fees, and in particular the order in which proceeds are distributed, justified by the fact that the word ‘may’ appears in the regulations.”

Play the game fairly, local authorities...

Collection & enforcement (cont/d)

Paul Caddy is President of the Civil

Enforcement Association (CIVEA).

Go to www.civea.co.uk

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had no intention of completing the process

by visiting to undertake enforcement action,

then any payment made has arguably been

obtained fraudulently. Furthermore, any

case passed to an EA would have to be re-

commenced at compliance stage, resulting in a

possible double charge to the debtor; a course

of action that I am sure would be of interest to

the Local Government Ombudsman.

The CIVEA rules, which all members

are required to adhere to have, following

an Extraordinary General Meeting of the

Association, been changed to reflect the

new regulatory procedure. This rule change

return, which will place the vulnerable

members of the community at greatest risk.

One further method that is apparently being

suggested to undermine the legitimate fee

charging of EAs is the proposal that a client

could undertake the compliance stage and

‘hive off ’ the £75 fee, then passing any

cases that are not paid in full to an EA. This

suggestion is flawed on a number of grounds.

The Notice of Enforcement contains a

warning that, ‘If you do not pay by the above

date, an enforcement agent will visit you and

may seize your belongings – this is called

taking control’, and accordingly, if a client

demonstrates the commitment of all CIVEA

members to adhere to the spirit of the new

regulations. I hope that clients will respect the

spirit and letter of the law, and will allow their

enforcement providers to compete on quality

of service, as is the intention of the reforms.

The first part of Paul’s article appeared in the

April edition of Insight.

“Undermining the legitimate fees that an enforcement business can generate risks pushing businesses into aggressive enforcement strategies in order to remain commercially viable – exactly what the reforms are intended to address.”

This one day workshop will look at web sites and use of customer access channels for revenues and benefits. With the need to claim on-line for Universal Credit and local authority’s role in the Local Support Service Framework, it has never been more important to provide a digitally engaged service to our customers. The day will include short presentations on implications of good and poor web sites, efficiency savings and improving the customer’s experience.

Target Audience • Revenues and Benefits Managers• System Administrators/Web masters/editors• Team Leaders/Customer Service Team leaders• Anyone with an interest in improving customer service

Programme• The route so far• Why are Web Sites Important – How does your site score?• The Local Support Services Framework – what do we need

to do?• Access Channels and Channel Shifting • Practical – Review of Web sites• Presentation on the Review of Web sites

Improving you Web Site and Customer Access ChannelsEdinburgh 30 June / London 18 September

• Why are Web Sites Important – How does your site score?• The Local Support Services Framework – what do we need

• Access Channels and Channel Shifting • Practical – Review of Web sites• Presentation on the Review of Web sites

SPECIAL OFFERS

ON MULTIPLE

BOOKINGS!

Edinburgh Course: scotland@irrv.org.uk or 01382 456029 / London Course: conference@irrv.org.uk or 020 7691 8987

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It’s all going on in the benefit world...Well, by the time you read this article we will

all have no doubt managed to get through

another successful year end in revenues and

benefits, and I can’t help casting my mind

back to this time last year. For many of us, who

perhaps started in the days of community charge or even before, it won’t come as any

surprise to find that we successfully managed

all the challenges we faced in the benefits

field during 2013. We even managed to

help the DWP out by re-assessing all those

cases exposed as pre-1996 loopholes to the

colloquially termed ‘bedroom tax’, and of

course re-assessed them all again when they

laid the amending regulations.

This year should certainly be a lot calmer

than last... or will it be? There are still a few

challenges which remain, many of which will

be outside the control of the staff working

within this area.

I can safely say that my own personal

housing benefit (HB) nightmare was during

the years 2000-2003, in the dark days of

transitional HB. For those of you lucky enough

to have escaped those days, I fear we may be

returning to a time when landlords sought to

have their tenancies confirmed as ‘exempt accommodation’, and frequently charged

grossly inflated rents.

My reason for this doom and gloom?

Well, I’ve discovered a new TV channel –

Parliamentary TV – and it ’s had some

gripping stuff on it lately, including an

evidence session with Lord Freud at the Work

and Pensions Select Committee. During this

he was questioned on the issue of hostels

– particularly those which remained within

the scope of the overall welfare benefits cap

primarily as a result of the legal challenges!

During that session, Lord Freud referred to the

current definition of exempt accommodation

as being somewhat ‘fuzzy ’, and went on

to state that legislation would be laid to

expand the definition to cover ‘virtually all’ hostels, even those where care and support is

provided separately.

However, what is perhaps more worrying

is that he reiterated the government’s longer

term aim, which is to “work out a way of

getting specialised housing dealt with in a

more flexible and dynamic way”. Now, where

have we heard that dreaded ‘d’ word before?

However, in this case they seem committed

to the idea of local authorities having an

expanded role, as they see it as vital that local

areas determine local need.

Talking of local, a challenge which upper tier

authorities will face over the coming year is

determining what will happen to the schemes

of local welfare provision (LWP) they

have established with the funds devolved to

them from the DWP’s previous administration

of community care grants and crisis loans.

Iain Duncan Smith was pressed hard on the

absence of funding in the local government

financial settlement when he appeared

on Parliamentary TV, but his response was

that “LWP funding is not stopping, it is just

being subsumed into the grant process from

2015/16, and will no longer be a S31 grant

but from DCLG via the local government

settlement“. Since local government funding is

not set to rise anytime soon, I’m not sure there

will be many finance directors who necessarily

share his view, but it will be a tough decision

to have to make, for members, to withdraw a

system of emergency assistance, even if many

authorities are currently reporting underspends

on their programme funding.

This is particularly concerning when linked

with the publication of benefit sanctions,

which showed that the number of sanctions

imposed on JSA claimants increased by

84,000 between November 2012 and

September 2013, when compared with the

same period the year before. This was largely

as a result of reforms implemented by the

Welfare Reform Act.Of course, there are more immediate issues

to concern ourselves with than either of those

longer term issues, with each news bulletin

apparently heralding changes to the ‘persons from abroad’ rules to limit what is viewed as

‘benefit tourism’. We have seen several of

these since the start of the new year, with the

final round promised for April, which will see

EEA jobseekers no longer able to receive HB

even if they receive JSA(IB).

Naturally, the DWP also face challenges, and

I can’t help wondering whether they will meet

the deadline for the national re-assessment

of all ‘old-style’ incapacity benefit claims to

Employment Support Allowance, which

was originally set to be complete by March this

year. I will resist the temptation to mention

Universal Credit at this point!

Needless to say, the legal challenges against

the bedroom tax will continue for the time

being, so it ’s a question of ‘watch this space’

and prepare ourselves for what will, I’m sure,

continue to be a challenging time within local

government benefit departments.

“However, in this case they seem committed to the idea of local authorities having an expanded role, as they see it as vital that local areas determine local need.”

Benefits bulletin

...as Louise Freeth’s foray into Parliamentary TV discovers!

Louise Freeth FIRRV MCMI is Revenues and

Benefits Change and Service Development

Manager with Liberata, and a member of

the IRRV’s national Council. Contact her

on louisefreeth@liberata.com

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FOI update

It is often said that the Freedom of Information Act 2000 (FOI) contains a right

of access to information but not documents.

Recent Tribunal and court decisions suggest

that this statement is no longer accurate.

Before we look at these decisions, it is

worth reminding ourselves of the definition

of information under FOI. Section 84 defines

information as ‘information recorded in any

form’. This includes information held on

paper, computer, video, audiotapes, as

well as that contained in manuscript notes.

FOI does not give access to information

that is known to the public authority, but is

not available in some recorded form (see

Ingle v Information Commissioner (EA/2007/0023)).

Mere marks made on documents are also

information according to an Information

Tribunal decision from 2009 (O Connell v the Information Commissioner and Crown Prosecution Service (EA/2009/0010)).

Here, the Tribunal considered access to

manuscript notes made by a defence barrister,

during a criminal trial, on his client’s typed police interview record. The Information

Commissioner’s view was that some of the

notes, which consisted of asterisks and

underlining of words on a document, were not

information for the purposes of FOI.

The Tribunal rejected this submission. In

its view, however tenuous and potentially

misleading the material sought may be, it still

constituted information, even if it was only

information to the effect that certain marks

had been made on certain sheets of paper

held by the public authority. The Tribunal did

however rule that the requested information

was sensitive personal data, disclosure of

which would breach the Data Protection Principles. Consequently it was exempt under

section 40(2), being third party personal data.

So what about the oft repeated phrase that

FOI provides a right of access to information

rather than documents? A request for a copy

When information is just a pale copy of the original

of a document will generally be a valid request

for all of the information contained within that

document (including visual format, design,

layout, etc). In considering whether the public

authority has complied with the request, the

question is whether all of the information

recorded in the document has been provided.

It will not be sufficient to rephrase the

document or provide an outline or summary

of its contents, unless the applicant has

specifically expressed a preference for a digest

or summary under section 11(1)(c).

In April 2013, the First Tier Tribunal

(Information Rights) ruled that images of MPs’ expense claim receipts were information to

which the FOI applied (IPSA v Information Commissioner (EA/2012/0242)). The

background to the request was that, following

the MPs’ expenses scandal, the then newly-

formed Independent Parliamentary Standards Authority (IPSA) decided that

it would not routinely publish images of

the receipts submitted to IPSA by MPs in

support of their expenses claims. Only text transcribed from the submitted receipts

would be published.

A journalist made an FOI request for the

actual receipts submitted by a number of

MPs. The question arose as to whether

images of those receipts held by IPSA

contained ‘information’ within the meaning of

section 1 of FOI, which was not captured by

the transcription process favoured by IPSA.

The Tribunal concluded that the definition

of information (in this case) included logos,

letterheads, handwriting, manuscript comments, and even the layout and style

of the requested documents. These were

not disclosed to the requestor as a result of

providing a transcription, rather than a copy,

of the relevant receipts.

The Upper Tribunal’s appeal decision in

this case, has now put the matter beyond

doubt. In Independent Parliamentary Standards Authority v IC & Leapman

“The Information Commissioner’s view was that some of the notes, which consisted of asterisks and underlining of words on a document, were not information for the purposes of FOI.”

An FOI request can relate to documents themselves, not just the information within them, concludes Ibrahim Hasan

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[2014] UKUT 33 (AAC) , Judge Williams

dismissed the appeal by IPSA. At Paragraph

22 of the judgement he said, “It is to me

also trite to note that the wording on a

typical receipt or invoice is only part of what

a recipient sees when looking at it. Typically

there will be verbal and numerical content

to be read and understood, but there will

also be visual content to be seen, rather

than read, but which may also require to

be understood for the recipient to have

appreciated the whole of the experience,

if I may term it that, communicated by the

receipt or invoice.”

In the judge’s view, information is more than

just the words and figures on a piece of

paper. Sometimes the nature of the request

will mean that the only way to convey all the

information on a document is to disclose

the original, or at least a copy. He gave the

example of Land Registry plans, drawings and

photographic evidence of a particular building.

In coming to his decision, the judge took

note of the Scottish Court of Session decision

in Glasgow CC v SIC [2009] CSIH 73 under

the Freedom of Information (Scotland) Act 2002 (FOISA). As a general point of

principle, the Commissioner and the Tribunal

is not bound by Court of Session decisions

on FOISA, although they may be considered

persuasive where the terms of FOISA mirror

the terms of FOI. In the Scottish case, the

applicant specifically wanted the public

authority to provide copies of the documents,

although he acknowledged that the same

information was available elsewhere. The

court confirmed that FOISA entitles requesters

to the information within a document, rather than a copy of the document itself. To

the extent that this request was specifically

for copies of the documents over and above

the information they contained, it was invalid.

The court rejected an argument that the copy

documents were ‘information’ distinct from

the information contained within them.

The Court stated at paragraph 45 of

the judgment: “Where the request does not

describe the information requested... but

refers to a document which may contain the

relevant information, it may nonetheless be

reasonably clear in the circumstances that it is

the information recorded in the document

that is relevant.”

However paragraph 48 should be noted:

“The difference between the original and

a copy... does not consist in any difference

between the information recorded in each

document: that information, if the copy is true and accurate, will be identical.”

(author’s emphasis)

In the IPSA case, the judge ruled that

transcriptions of the requested receipts would

not be ‘true and accurate’, as they would

not contain all the same information as on the

originals, e.g. logos, style, layout, etc.

If you want to know more on the Scottish

case, read the briefing note published by the

Scottish Information Commissioner. The basic

principles (and these apply equally to FOI

requests) are:

• The Freedom of Information (Scotland) Act

2002 (FOISA) provides a right of access

to information and not a right of access to

copies of specific documents

Ibrahim Hasan is a solicitor and director

of Act Now Training.

Go to http://www.actnow.org.uk

“ These were not disclosed to the requestor as a result of providing a transcription, rather than a copy, of the relevant receipts.”

• authorities should not automatically refuse

requests for copies of documents, as long as

it is reasonably clear from the request that it

is the information recorded in the document

that the applicant wants

• requesting a document (e.g. a report, a

minute or a contract) is a commonplace

way to describe information. Where it is

reasonably clear that a request is for the

information contained in a document, the

authority should respond to the request as

one properly made under FOISA

• if a request is for a document, but it is not

reasonably clear what information is being

requested, the authority should contact the

applicant to seek clarification.

These are interesting decisions, especially

for those public authorities who often insist,

when refusing to supply actual documents

(such as minutes of meetings), that FOI is

about access to information not documents.

Sometimes the requestor is interested in the

document, which contains the requested

information, as it will give a further insight into

its background and the thoughts/observations

of the producers/subjects of the document.

Much will also in practice depend on the

wording of the request.

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Management

in your mind. Decision making becomes

harder to execute successfully.

Improved emotional regulationA review of 24 different studies on the effects

of exercise on self control found that a short

bout provides an immediate boost to self

control. Greater emotional regulation is a

hallmark of resilient people – they are less

prone to outbursts that can cause themselves

and others problems.

Improved ‘executive functioning’What psychologists call ‘executive functioning ’ includes all kinds of useful

abilities, like being able to switch tasks

efficiently, stay focused, access emotional

intelligence, ignore distractions, make strategic

plans, and so on. Studies in this area found

that exercise reliably improves executive

function, especially in older adults.

Improved neurogenesisPart of the reason that exercise is beneficial

in so many different mental areas is that it

helps new brain cells to grow. A study on rats

has shown that, in response to exercise, the

brain regions related to memory and learning

grow. If you are past the age of 40, take note –

regular exercise will help replace and maintain

the grey matter you need to stay up with

younger competitors!

Improved sleep qualityIt ’s not necessarily the case that exercise

makes you tired, so you sleep better. However,

studies find that exercise did help sleep in

the long term. Participants with insomnia who

kept to their exercise programs over 16 weeks

did get better sleep than those who did no

exercise. Exercising too late in the evening

could stimulate the brain and keep you awake,

so exercise earlier in the evening or the day.

Improved sleep quality has countless knock-on

positive effects for the body and the mind.

What can we do to become more resilient?In the last article we introduced the

importance of resilience in performance

at work. It is however, just as important, as

a form of protection against physical and mental illness and breakdown (or

burnout). In short, the more resilient you are,

the more likely you will enjoy a healthy and

happy life. The question is, therefore, what

can we do to become more resilient? In this

article we will focus on physical fitness,

and review some of the exceptionally positive

relationships it has with resilience.

People with good emotional health have an

ability to bounce back from adversity, change,

trauma and other periods of acute stress. This

‘bouncebackability ’ is called resilience! They

remain focused, adaptable and creative

during change and stress, and access a range

of tools to help them continually adapt to what

life throws at them. They may even experience

significant learning, growth and career

progression as a result of this capacity for

resilience. Many resilient people understand

intuitively the importance of their physical

health, and maintain healthy behaviours to

fuel their work/life balance. This does not

mean being obsessed with physical fitness,

but it does mean recognising the important

role it plays.

Here are some of the wonderful psychological

effects that exercise has on the mind, beginning

with those that will benefit you at work, and

moving through those that may benefit you

throughout your life and into retirement.

Increased Working Memory Capacity (WMC)WMC includes what’s in your conscious mind

right now, and whatever you’re doing with

this information. After 30 minutes’ exercise,

people’s working memory improves. There’s

some evidence that accuracy drops a bit, but

this is more than made up for by increases in

speed. Stress degrades it, meaning you can

literally feel you cannot hold more information

Reduced anxietyExercise has a relatively long lasting protective

effect against anxiety. Both low and medium

intensity exercise has been shown to reduce

anxiety. However, those doing high intensity

exercise are likely to experience the greatest

reduction in anxiety, especially women.

Fighting depressionJust as exercise fights anxiety, it also fights

its close relation, depression. One review of

39 different studies involving 2,326 people

has found that exercise generally provides

moderate relief from depression. The effects

may be as great as starting therapy or taking

anti-depressants.

Lowered dementia riskAlmost any type of exercise that gets your

heart working reduces the risk of dementia.

A review of 130 different studies found that

exercise helped prevent dementia and mild

cognitive impairment among participants.

Regular exercise in mid life was associated

with lower levels of cognitive problems. Not

only this, but participants who exercised had

better spatial memory.

Reduced ‘silent strokes’A silent stroke is one that seems to have

no outward symptoms, but does actually

damage the brain. Without knowing why,

sufferers can start experiencing more falls,

memory problems and difficulties moving.

Exercise reduces the chance of these silent

strokes by 40%. It has to be more than just

walking or playing golf, though – things like

jogging, biking, playing tennis or swimming are

probably required to get the protective effect.

Lowered Alzheimer’s riskIn the most common form of dementia,

Alzheimer’s, the brain literally wastes away,

closely followed by the body. Neurons and

synapses are lost, and the sufferer’s memory,

Exercise will help boost your resilience, promises Mark Davies

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personality and whole being slowly but

surely disappear. Exercise, though, provides

a protective effect against Alzheimer’s by

helping to produce chemicals which fight the

damaging inflammation of the brain.

Prevention of migrainesMigraine sufferers are often afraid of

exercise, because it might bring on an attack.

But a study has shown that exercise can

actually help prevent migraines. Participants

who took part in three sessions a week on

an exercise bike for three months showed

improvements equivalent to taking the latest

anti-migraine drugs.

More fun than we predict!People who don’t exercise tend to have minds

that say to them it ’s going to be hard work

and no fun – this could not be further from

the truth. Research has shown that while

exercising can be a drag at the start of the

session, people soon warm up and enjoy

their workouts much more than they predict.

This was true across lots of different types

of people, and for both moderate and

challenging workouts.

So, by focusing on activities you enjoy,

starting sensibly if you are new to exercise or

recovering from injury, tailoring a regular mild

to moderate exercise routine to your needs,

you can:

• experience the physical health benefits

of exercise

• improve your psychological wellbeing

• boost your energy

• protect yourself against stress

and age-related decline

• become far more resilient.

We would like to acknowledge

the following websites for

their resources:

www.spring.org

www.realwarriers.net www.helpguide.org

“Many resilient people understand intuitively the importance of their physical health, and maintain healthy behaviours to fuel their work/life balance.”

Mark Davies is Managing Director

of 7Futures. Contact him on

mark@7futures.com

IRRV Scotland is pleased to announce this major conference, taking place on Thursday 26th June in Glasgow, and being organised at the request of local authorities, housing associations, other organisations and IRRV members across Scotland.

The advent of Universal Credit heralds the biggest change in welfare benefits delivery in a generation and its likely impact on service delivery in local authorities is hugely significant.

In addition to the latest information about Universal Credit implementation, this conference will look in detail at preparations local authorities, housing organisations and the third sector should be taking – giving practical examples, the need for organisations to have a clear digital strategy and the likely long-term effects of Universal Credit.

The Department for Work and Pensions will update conference on progress with the delivery programme and with other key speakers, this conference is a must for all local authority, housing association, third sector and other key professionals.

www.tiny.cc/UCirrvscot

Preparing for Universal CreditThe Teacher Building, Glasgow, Thursday 26th June 2014

For more information, fees and how to book, please email scotland@irrv.org.uk

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Scrafton’s law

This is a subject close to my heart since

the passing of the 1999 Act, not least of all

because I followed the passage of the Bill

through both Houses of Parliament, on behalf

of the Institute, on a strictly non-party basis.

It transpired that I wrote, unwittingly, the

Liberal Democratic speech on Report in the

Commons, and the Conservative speech on

Third Reading, when the Bill as a whole was

nearly defeated. More significantly, perhaps,

I had a major hand in the writing of the

Minister’s speech in Committee in the Lords,

which is enshrined in Hansard and the Rating

Manual, among other places, and of which

various interpretations and reinterpretations

crop up from time to time.

The latest mention comes in the February

2014 decision of the Lands Chamber in

the case of S&J Monk v Keith Newbigin (Valuation Officer [2014] UKUT 0014 (LC) or (RA/62/2012). This case related to

first floor offices in a building in Sunderland

Enterprise Park, and there were two proposals

which reached the Lands Chamber, both being

of general interest.

The first of these sought a deletion from

the List with effect from 1st April 2010

on the ground that the hereditament had

been subject, from that date, to “...a major

refurbishment scheme including structural

alterations and the premises [were] incapable

of beneficial occupation”. That proposal was

withdrawn prior to the hearing of the appeal

against the resultant disagreement.

The second proposal, however, (using the

standard Agency proposal form) sought a

reduction in assessment to RV £1 with effect

from the date of compilation, and claiming a

material change of circumstances as at the

compilation date (Question 15 D), the reasons

being expanded in response to Question 16.

Again, the Agency did not ‘well-found’ the

proposal, and the resultant dispute went to

a Valuation Tribunal, which dismissed the

ratepayers’ appeal, finding that the material

Whither (or wither) ‘reasonable repair’?

day had been 6th January 2012, being the

date of the second proposal.

Notwithstanding that the parties had

agreed the issues for determination by the

Chamber as:

‘(i) Whether the VTE erred in finding that

the correct date of the material day, for

the purposes of considering the physical

state of the appeal hereditament, was 6th

January 2012; and

(ii) Whether the VTE erred in upholding

the respondent’s position that the appeal

hereditament has a rateable value of

£102,000, or whether (as contended by the

appellant) it ought to have been a rateable

value of £1 because on the material day it

was undergoing a scheme of refurbishment

that altered the hereditament.’

The judge (Mr A J Trott FRICS) held that the

second issue was wrongly stated, and that

what had emerged from the hearing before

him was that the necessary preliminary

question which needed to be answered

was, “What physical state should the

hereditament be assumed to have been in

on the material day? ”

It is unnecessary, here, to traverse all of the

facts, but suffice it to say that the works were

in progress, that the value of the contract was

said to be £332,000 (more than three times

the rateable value) and that, among other

things, the hereditament was vacant, all wiring

had been stripped out, as had the comfort

cooling system, the sanitary fittings and the

block walls to the WCs, as well as the majority

of the ceiling tiles, suspended ceiling grid

and light fittings, and about half of the raised

floor. As against that, plasterboard partitions

had been erected and plastered to form the

outline for the WCs, a further partition had

been erected and plastered across the floor on

one side of the building, alterations had been

Peter Scrafton is back with the first of a two part feature, and this time his contentious subject material is...

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made to the drainage from the new WCs, and

first fix electrical installations to that area had

also been completed.

Both parties were represented by

counsel, and the ratepayer had been legally

represented when the proposals had been

made. Thus, the whole case may be said

to have been fully and carefully argued,

throughout, by both parties.

The judge’s first task was to determine the

material day for the purpose of the appeal,

which he did by reference to Regulations 3

and 4 of the 1992 Material Day Regulations.

The appellant sought a material day of 1st

April 2010, on the basis that by its proposal of

6th January 2012 its declaration therein that

there was an ongoing scheme of works as at

the date of compilation enabled the material

day to be determined as 1st April 2010, but

that, if that was wrong, and the material day

was determined as 6th January 2012, then

the appellant’s position would be stronger, as

a greater proportion of the scheduled works

would have been carried out by that date. In

any event, it was submitted, the effective date

(under Reg.14 of the 2009 Regulations) would

have to be 1st April 2010.

Although its submissions as to material

day failed, the appellant succeeded on the

effective date point, having regard to the

decision by the judge as to what the correct

formulation of the second issue for his

determination should be. Nevertheless, there

is an object lesson for practitioners in this

part of the decision, for which readers are

referred to paragraphs 32-36, where the judge

analyses the proposal form and the answers to

the questions therein given. Great care must

be taken to word a proposal by ticking the

right boxes on the form – if it is used, which,

as a matter of law, is not necessary. On this

occasion, it worked against the ratepayer, even

though the financial situation was recovered in

the second part of the decision.

Here we come to the effect on proceedings

of the 1999 Act, and the state of ‘reasonable repair’ which is deemed to come into effect

immediately before the commencement of the

hypothetical tenancy.

There was a difference of view between the

two valuers, Mr Farr and Mr Newbigin, both

of whom had inspected the property at the

material time, as to the exact nature of the

work being carried out. Mr Farr was quite clear

that there was an alteration to the floorplate

of the hereditament, thereby, together with

the substitution of air conditioning for comfort

cooling, rendering the hereditament materially

different from what had been there before the

works commenced. Mr Newbigin was equally

adamant that there was no change, and that

the works carried out (the valuers were not

particularly far apart in relation to cost) were

no more, really, than works of refurbishment

and repair.

Lack of space forbids a detailed review of

the arguments deployed, but the judge

summarises the Valuation Officer’s argument

(at para.75) as follows:

“The respondent’s argument as presented

at the hearing is that, in every case, one must

determine whether the hereditament can

be repaired economically given its physical

condition at the material day. Provided a

reasonable landlord would not consider

such repairs to be uneconomic then the

hereditament must be assumed to be in

a state of reasonable repair at that time.

The respondent says that it is not relevant

if a programme of works is under way at

Peter Scrafton FIRRV FCIArb MRSA (Hon),

Solicitor (Non-Practising), Accredited Mediator,

is a legal and valuation consultant. He can be

contacted at jpscrafton@jpscrafton.com

the material day since the intention of the

landlord and the existence of a contract

are not relevant. The respondent argues

that paragraph 2(1)(b) of Schedule 6 does

not require (or allow) a distinction to be

made between the causes of the physical

state in which the hereditament exists at

the material day; all one has to do is to

determine whether, given that state, it can be

repaired economically. If the answer is yes

then it must be assumed to be in a state of

reasonable repair.”

That argument was comprehensively

rejected, the judge observing that the

respondent’s submissions run contrary to

more than one decree in the Rating Manual

(that Law of the Medes and the Persians

which changeth not!), while adding that it

represented a “...considered and informed

commentary on the law which merits

attention”, and also adding that it should not

be adopted if it is found to be mistaken, and

that, “...the Tribunal is not bound by it and it is

not relevant to the construction of the

statutory provisions.”

Peter’s conclusion will appear in the June

edition of INSIGHT.

Part one

“Both parties were represented by counsel, and the ratepayer had been legally represented when the proposals had been made. Thus, the whole case may be said to have been fully and carefully argued, throughout, by both parties.”

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Doherty’s despatch

Reducing council tax supportOne year after the introduction of council tax support (CTS), research undertaken by

the New Policy Institute on behalf of the

Joseph Rowntree Foundation (JRF) shows

that only 45 councils out of 326 will continue

to provide the level of support that had been

available under the former council tax benefit

(CTB) system.

This research shows how the system is

changing, and its impact on families receiving

CTS in England. The key points highlighted are:

• CTS gives low income working age families a

discount on the amount of council tax they

have to pay. So if CTS is cut, the result is a

tax increase for those families affected

• the overall levels of CTS available will be

lower in 2014/15 than 2013/14. Only 45

councils (out of 326) will continue to provide

the level of support available under CTB –

13 fewer than last year. 244 councils now

require all households to pay at least some

council tax regardless of income (a minimum

payment) – 15 more than last year

• in 2014/15, 2.34 million low income

families will pay on average £149 more in

council tax per year than they would have

under CTB. Around 70,000 families will have

their support cut for the first time, and a

further 580,000 families will see a second

Hitting the most vulnerable in a place they cannot afford – their pockets!

successive change in their entitlement

• of the 2.34 million affected families,

1.5 million were in poverty (measured after

housing costs) and 1.8 million were workless

families. The uniform exemption from paying

council tax for low income households no

longer exists

• levels of arrears and bailiff referrals linked

to the non-payment of council tax increased

following the introduction of CTS, while

the collection rate fell. This is true across

England, but the largest increases in arrears

were in those areas that introduced a

minimum payment

• councils are now required to hold a

referendum if they want to increase overall

levels of council tax above the maximum

set by the Secretary of State, but no such

protection is offered to those low income

families affected by CTS, who face possible

cuts in support each year.

I suppose the conclusions from this research

are blindingly obvious, and were predicted

by many in local government when the

government scrapped CTB and introduced

CTS. The shortfall between the money

councils receive to fund council tax support

and the money they would need to protect

those on low incomes is getting larger, and is

likely to reach £1bn by 2016. At the same time,

councils are at the receiving end of the biggest

cuts that I can remember, and certainly cannot

afford to make up the shortfall. In fact the

situation is likely to get worse, and it leaves

local authorities in the unenviable position

of having to decide between taking more tax

from working age claimants and/or taking

more money out of front line services.

It ’s very difficult to see how local authorities

will resolve this difficulty, as cuts in grant

are forecast to increase, with the result that

CTS will continue to reduce, hitting the most

vulnerable in a place they cannot afford –

their pockets!

Is it time to replace council tax?The JRF has been busy with its reports related

to local government, and is suggesting that

it ’s time to start thinking about a long term replacement for council tax. According to

their research, council tax is widely discredited,

and their study examines two key questions:

• would taxing property values be fairer than

the council tax, and

• could such a tax help to reduce house

price volatility?

The key conclusions arising from their

report are:

• a progressive property value tax would

reduce the size of median gross bills by

£279 a year compared to the council tax

• gross bills would fall by more than 10% for

almost two thirds (63%) of households. Less

than one quarter (22.3%) would experience

increases of more than 10%

• a progressive property tax would reduce

gross median bills for the poorest tenth of

households by £202, and increase them for

the top tenth by £184

• London is a special case because of its high

property prices, and needs to be handled

differently, with its own scheme

• a property tax could also have a supporting

role in reducing house price volatility, along

with other measures such as mortgage credit controls

• any national property value tax would need

to be phased in gradually

• a property tax should also take account of

household income, and a hybrid property and income tax should be investigated.

To arrive at many of these conclusions they

would not have needed to undertake detailed

research – all they had to do was speak

to a few revenue officers, and they would

have been told that council tax is highly regressive, there are too few bands, and

that a revaluation is long overdue.

“All they had to do was speak to a few revenue officers, and they would have been told that council tax is highly regressive, there are too few bands, and that a revaluation is long overdue.”

Research into benefit and council tax reform spells doom and gloom for the vulnerable, discovers Pat Doherty

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Whilst JRF is talking about replacing

council tax, the Irish Republic has just

introduced a capital value banding system for residential properties that

has 19 bands, and I am currently

involved in a project overseas

where it is quite possible that

a banding system will be

introduced, using between

11 and 15 bands.

We do not need a new property tax – we just

need to update council

tax by having a revaluation

and increasing the number of bands to make the tax

more progressive.

Bedroom tax is hitting the most vulnerable! Politicians never cease to amaze me!

They voted for reductions in housing

benefit, and now – after the event – they

conclude that the government’s changes to

housing benefit, including the introduction

of the so-called ‘bedroom tax’, are causing

financial hardship to vulnerable people.

A repor t from the Work and Pensions

Commit tee examined the impact of benefit

reforms – including the housing benefit

cuts for social housing tenants deemed to

have spare rooms, and also the possible

cuts as a result of the benefit cap. The

commit tee concluded that the changes

were hit ting people unable to change their circumstances.

In the report, the committee recommends

all households that include a person in

receipt of the higher rate of Disability Living Allowance and Personal Independence Payment disability benefits should be

exempt from the bedroom tax (officially

called the removal of the spare room subsidy).

According to the committee, the reforms

to housing support were intended to reduce benefit expenditure and incentivise people to enter work. It was also intended

to make better use of available homes,

through incentivising those with extra space

to downsize. It adds, “...but vulnerable groups,

who were not the intended targets of the

reforms and are not able to respond by

moving house or finding a job, are suffering

as a result”.

Those who work on the front line of benefit

administration could have told the committee

this would be the result before the changes

were implemented!

Pat Doherty FIRRV CPFA is an independent

consultant and a Past President of the IRRV.

If you wish to comment on anything in this

article, please email him on

pkd@pkdconsultancy.co.uk

The committee also concluded that

the system of Discretionary Housing Payments (DHP) was not a good solution.

This support was temporary, and individual

local authorities have different eligibility

criteria. As a result, awards from the fund tend

to be based on where claimants live, rather

than need. The report concludes that the

government should increase the level of DHP

funding – a conclusion I agree with.

Richard Harbord MPhil CPFA FCCA IRRV (Hons)

FIDP FBIM FRSA is a member of the IRRV and

CIPFA Councils and President of the IRRV34

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Viewpoint

to arguably the zenith of local government with

the consolidating Act of 1933.

I quote f rom the f irs t essay by J L

Hammond: “At the t ime of the passing

of the Municipal Corporat ions Ac t the

Engl ish towns were sunk in a condit ion of

barbarism that would have put a ci t izen

of the Roman Empire to the blush. They

had none of the amenit ies , few of the

decencies of civ i l izat ion. The Health of

Towns Commission in 1842 was told that

in al l Lancashire there was only one town,

Preston, with a publ ic park , and only one,

Liverpool , with a publ ic baths” . In the

nex t 100 years the countr y led the way

in the ‘removal of f ilth and provision of pure water ’. I t was general ly fel t

that nothing Br i tain did in the wor ld in

that 100 years was as impor tant as the

revolut ion in local government . And i t was

a remarkable s tor y. In 1835 the af fairs of

local government were in the hands of

the squires, and the impor tant Acts of Parliament which improved things so

dramat ical ly were int roduced by the Chief

Commissioner for Woods and Forests (the

Er ic Pick les of his day !) .

The Royal Commission that reported

in 1835 found local government not fit for

My favourite local government book choice

Those of you who read The Guardian might

have seen that to celebrate World Book Day

the newspaper asked certain figures from local

government to nominate their favourite book

about local government. It was surprising to

learn that there are some ‘bodice-ripping’ (New York Times 1980) stories of life in local

government. I remember Room at The Top,

when Joe Lampton, who studied accountancy

as a prisoner of war, took a job in the

Municipal Treasury of Warley, aspiring to earn

£1000 per annum. There followed a tragic tale

of sex and power.

But there is also J.K Rowling’s first book

for adults – Casual Vacancy – about the

town of Pagford. I quote, “Pagford is not

what it first seems. And the empty seat left

by Barry on the parish council soon becomes

the catalyst for the biggest war the town has

yet seen. Who will triumph in an election

fraught with passion, duplicity and unexpected

revelations? ” Sounds a bit too near to true life

to be plausible to me!

Or perhaps Winifred Holtby’s South Riding,

which includes the scandal of building on a

flood plain, budget cuts and the complexities

and conflicts of political decisions. The

dangers of procurement in David Storey’s

The Sporting Life, or a very recent novel

by a Director of Corporate Services (Dawn

Reeves) called Hard Change. There is also

the Theodosian Code and Novels and the Sirmondian Constitution, but somehow the

title has put me off!

So what did I choose to put forward? It

was pure non-fiction. I examined closely the

bookshelves in my study and alighted upon a

book of sheer delight. It has the snappy title of

A Century of Municipal Progress 1835-1935. It is a collection of essays by the local

government greats of the 1930s – such people

as Harold Laski, Ivor Jennings, Herbert Morrison

and William Robson – and it tells of the

vibrancy and excitement of the hundred years

from the Municipal Corporations Act of 1835

purpose. It complained in 3446 pages that:

• Corporations existed entirely independently

of the communities they served

• there were manifold evils in managing

corporate property (including leasing it to

themselves for long periods at low rents)

• corporate funds were but partially applied

to municipal purposes, frequently expended

in feasting and in paying the salaries of

unimportant officers

• few corporations admit a positive

obligation to expend the surplus of their

income to the public advantage, and

where such acts take place they are seen

as acts of spontaneous generosity

• the salaries of the corporate officers in

a great many instances are not at all

commensurate with their duties, and

• the allowance to the chief official is very

large, and it is well understood that he is to

spend it in private entertainments.

The story which unfolds over the next 100

years is indeed remarkable, and a great

triumph. At the end of the book William

Robson writes that the volume ending

in 1935 ends on an optimistic note: “An

unlimited vista of the future usefulness and

expansion stretches before us. We can look

forward to the next century in the most

cheerful sense of the term”.

Well, I fear that anyone attempting to

chart progress of municipal greatness in the

100 years to 2035 may have some difficulties

in remaining cheerful throughout. For a start,

that period sees the loss of services such

as water, gas, electricity, hospitals etc., and

an erosion of local independence so fiercely

fought for previously.

I recommend this volume as an uplifting read.

“In 1835 the affairs of local government were in the hands of the squires, and the important Acts of Parliament which improved things so dramatically were introduced by the Chief Commissioner for Woods and Forests (the Eric Pickles of his day!)”

Oh that local government history might repeat itself, yearns Richard Harbord, as he dusts down his book collection

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