Agenda item

Briefing note

The Board considered a Briefing Note which provided an update on the Council’s performance in respect of council tax administration, collection and enforcement for the tax year 2023/24. 

Data on enforcement powers during the year, collection performance for England, metropolitan local authorities and CIPFA nearest neighbours were appended to the briefing note.

The Board noted that, though there had been significant arrears since the Covid pandemic, Coventry maintained a balance between robust recovery and enforcement of council tax arrears, whilst supporting the most vulnerable households with a proportionate approach to the recovery of arrears. Amongst the measures taken were:

·  Vulnerability Panel – Senior Officers, including the Head of Service, met monthly to review vulnerable cases and determined whether debts should be pursued or written off

·  Committal Approval Panel – like the Vulnerability Panel, any case progressing to committal stage must be approved by panel, including the Head of Service. All cases proceeding to committal stage will have been subject to checks with Adult Social Care to determine any vulnerability

·  Financial data - In reviewing vulnerable cases the Council makes use of third-party financial data to assess the ability to pay

·  Quarterly advice sector review meetings – attended by Council officers, advice agencies and the Council’s appointed enforcement agents. These meetings helped to maintain constructive working relationships between the partners and ensured any concerns about collection practices were quickly addressed

·  Discretionary Relief Policy – this policy existed in addition to the council tax support scheme and provided for relief of up to 100 per cent for the most vulnerable residents. This scheme was used particularly to support care leavers and families with no recourse to public funds.

·  Court costs – the Council does not apply for court costs if it has to seek a liability order against someone in receipt of council tax support

·  Benefit deductions – the Council would always try to make deductions from someone’s benefit before a debt is referred to an enforcement agent

·  Flexible payment arrangements – once a person loses the right to pay by instalments the Council has the right to demand the balance in full. Council officers were encouraged to make affordable, flexible payment arrangements wherever possible. In cases where there was limited ability to pay and the taxpayer has significant arrears, officers could recommend that historical debt was written off on the condition that ongoing payments were made. This could help taxpayers to avoid or emerge from the debt spiral.

The Board questioned officers and the Cabinet Member on a number of matters arising from the presentation and following discussion agreed to receive information on the following:

·  Eligibility requirements for the Council Tax Support Scheme.

·  Data on the number of people who had received a statutory reminder notice and the proportion who were subsequently summonsed.

·  Details of the Council Tax Support Scheme write-off process

·  Debt by tenure data - The split between homeowners and those who rented. 

RESOLVED that the Board note the report and agreed to receive a further report in the new municipal year 2025/2 to detail the outturn performance for the tax year 2024/25.