Agenda Document Pack - Lanarkshire Valuation Joint Board - 05/12/2022
South Lanarkshire Council · 5 December 2022
Back to Lanarkshire Valuation Joint Board — 5 December 2022 and its agenda
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Tuesday, 29 November 2022 Dear Councillor Lanarkshire Valuation Joint Board The Members listed below are requested to attend a meeting of the above Board to be held as follows:- Date: Monday, 05 December 2022 Time: 14:00 Venue: Hybrid - Council Chamber, Council Offices, Almada Street, Hamilton, ML3 0AA The business to be considered at the meeting is listed overleaf. Yours sincerely Cleland Sneddon Clerk to the Board Members Walter Brogan (Convener), Jim Reddin (Depute Convener), Bob Burgess, Lesley Jarvie, Tom Johnston, Fergus MacGregor, Alex McVey, William Shields, Anne Thomas, Janine Calikes, Ross Clark, Colin Dewar, Lynsey Hamilton, Martin Hose, Gavin Keatt, Mark McGeever Substitutes Nicky Shevlin, Mathew Buchanan, Poppy Corbett, Geri Gray, Cal Johnston-Dempsey, Monique McAdams, Carol Nugent, Norman Rae, Margaret B Walker 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting Minutes of Lanarkshire Valuation Joint Board held on 5 September 2022 submitted for approval as a correct record. (Copy attached) 3 - 6 Monitoring Item(s) 3 Revenue Budget Monitoring and Probable Outturn Position 2022/2023 - Lanarkshire Valuation Joint Board Report dated 22 November 2022 by the Treasurer, Lanarkshire Valuation Joint Board. (Copy attached) 7 - 10 Item(s) for Decision 4 Revenue Budget 2023/2024 - Lanarkshire Valuation Joint Board Report dated 22 November 2022 by the Treasurer, Lanarkshire Valuation Joint Board. (Copy attached) 11 - 16 Item(s) for Noting 5 Progress Update Report dated 22 November 2022 by the Assessor and Electoral Registration Officer. (Copy attached) 17 - 32 Urgent Business 6 Urgent Business Any other items of business which the Chair decides are urgent. For further information, please contact:- Clerk Name: Stuart McLeod Clerk Telephone: 07385 370 117 Clerk Email: stuart.mcleod@southlanarkshire.gov.uk 2
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LANARKSHIRE VALUATION JOINT BOARD Minutes of meeting held via Confero and in the Council Chamber, Council Offices, Almada Street, Hamilton on 5 September 2022 Convener: Councillor Walter Brogan, South Lanarkshire Council Councillors Present: North Lanarkshire Council Councillor Bob Burgess, Councillor Lesley Jarvie, Councillor Tom Johnston, Councillor Jim Reddin (Depute), Councillor Bill Shields, Councillor Anne Thomas South Lanarkshire Council Councillor Ross Clark, Councillor Colin Dewar, Councillor Geri Gray (substitute for Councillor Janine Calikes), Councillor Mark McGeever Councillors’ Apologies: North Lanarkshire Council Councillor Fergus MacGregor, Councillor Alex McVey South Lanarkshire Council Councillor Janine Calikes, Councillor Lynsey Hamilton, Councillor Martin Hose, Councillor Gavin Keatt Attending: Assessor and Electoral Registration Service G Bennett, Assessor and Electoral Registration Officer; C Maxwell, Assistant Assessor and Electoral Registration Officer; R Pacitti, Assistant Assessor and Electoral Registration Officer Clerk’s Office K McLeod, Administration Assistant; S McLeod, Administration Officer, South Lanarkshire Council Treasurer’s Office P Manning, Treasurer; L O’Hagan, Finance Manager (Strategy), South Lanarkshire Council Also Attending: Audit Scotland B Gillespie, Lead Auditor; A Kerr, Senior Audit Manager 1 Declaration of Interests No interests were declared. 2 Minutes of Previous Meeting The minutes of the meeting of the Lanarkshire Valuation Joint Board held on 27 June 2022 were submitted for approval as a correct record. The Board decided: that the minutes be approved as a correct record. 2 3
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3 Revenue Budget Monitoring 2022/2023 – Lanarkshire Valuation Joint Board A report dated 17 August 2022 by the Treasurer was submitted comparing the Board’s actual expenditure at 15 July 2022 against the budgeted expenditure for 2022/2023 and providing a forecast for the year to 31 March 2023. As at 15 July 2022, there was an underspend on the Board’s revenue budget of £0.113 million. The financial forecast to 31 March 2023 was a breakeven position. The Treasurer and an Assistant Assessor and Electoral Registration Officer responded to a member’s question on the underspend and position in terms of the vacant posts for which recruitment was ongoing. The Board decided: (1) that an underspend of £0.0113 million on Lanarkshire Valuation Joint Board’s revenue budget, as detailed in Appendix A to the report, be noted; and (2) that the forecast to 31 March 2023 of a breakeven position be noted. [Reference: Minutes of 27 June 2022 (Paragraph 6)] Councillor Burgess left the meeting during this item of business due to technical issues 4 External Auditors’ Annual Report to the Board A letter dated 5 September 2022, together with the Annual Audit Report 2021/2022 to Members of the Lanarkshire Valuation Joint Board and the Accounts Commission, was submitted by Audit Scotland, the Board’s External Auditor. Details were given on the key messages contained in the External Auditor’s report in relation to:- the audit of the Board's Annual Accounts for 2021/2022 financial sustainability, governance arrangements and performance of the Board The accounts had received an unqualified and unmodified independent auditor’s report. The Board decided: that the report be noted. 5 Audited Accounts 2021/2022 A report dated 18 August 2022 by the Treasurer was submitted on the Board’s audited annual accounts for 2021/2022. The accounts, which required to be approved for signature, had been audited by the External Auditor, Audit Scotland, and had received a clean audit certificate. The accounts would be available for inspection:- on request from Finance Services, Council Offices, Almada Street, Hamilton from the office of the Assessor and Electoral Registration Officer, David Dale House, Blantyre on the Lanarkshire Valuation Joint Board’s website 4
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The Board decided: (1) that it be noted that the Statement of Accounts for 2021/2022 had received a clean audit certificate from the External Auditor; and (2) that the audited Statement of Accounts for 2021/2022 be approved for signature. [Reference: Minutes of 27 June 2022 (Paragraph 9)] 6 Progress Update A report dated 18 August 2022 by the Assessor and Electoral Registration Officer was submitted on:- an overview of the Service current issues and Service priorities an update on performance issues affecting the future direction of the Joint Board Statistical information, illustrating progress made in terms of key areas of the work undertaken by Lanarkshire Valuation Joint Board, was provided in the appendices to the report. The Board decided: that the report be noted. [Reference: Minutes of 27 June 2022 (Paragraph 14)] 7 Urgent Business There were no items of urgent business. 5
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 5 December 2022 Report by: Treasurer to Lanarkshire Valuation Joint Board Subject: Revenue Budget Monitoring and Probable Outturn Position 2022/2023 - Lanarkshire Valuation Joint Board 1. Purpose of Report 1.1. The purpose of the report is to: [purpose] provide a forecast for the year to 31 March 2023 provide information on the actual expenditure measured against the revenue budget for the period 1 April 2022 to 4 November 2022 [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s): [recs] (1) that following the probable outturn exercise, the transfer to Reserves for the current financial year is £0.061 million (section 4.1 and Appendix A), be noted; (2) that following the transfer to Reserves of £0.061 million, the Reserves balance at the end of March 2023 will be £1.540 million (section 4.5), be noted; and (3) that an underspend to date of £0.162 million on Lanarkshire Valuation Joint Board’s revenue budget as at 4 November 2022 (section 4.8 and Appendix A), be noted. [1recs] 3. Background 3.1. This is the third revenue budget monitoring report presented to the Lanarkshire Valuation Joint Board for the financial year 2022/2023. 3.2. The report details the financial position for Lanarkshire Valuation Joint Board as at 4 November 2022 as well as detail on the annual probable outturn exercise carried out for financial year 2022/2023. These are detailed in section 4 shown in Appendix A. 4. 2022/2023 Probable Outturn and Revenue Monitoring 4.1. Appendix A shows the results of the probable outturn exercise. The financial forecast to 31 March 2023 is a Transfer to Reserves of £0.061 million. This is compared to a budgeted Transfer from Reserves of £0.060 million and means that the Board’s Reserves will be in a better position than budgeted, by £0.121 million. 4.2. The improved position is mainly the result of the ongoing underspend in Employee Costs (£0.186m). This is partially offset by overspends in Supplies and Services (£0.039m), and Financing Charges (£0.024m). Explanations for these variances are detailed overleaf. • Employee Costs: The underspend (£0.186m) mainly reflects the level of turnover experienced in staffing to date and vacant posts, for which recruitment is ongoing. 3 7
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• Supplies and Services: The overspend (£0.039m) reflects additional work for systems development in relation to Barclay recommendations, which were delayed from 2021/2022, and increased costs of computer equipment maintenance. • Financing Charges: The overspend (£0.024m) is in relation to higher than budgeted IT leasing costs to cover the costs of both office-based desk top computers and laptops to facilitate home working, reflecting business need. 4.3. The transfer of Valuation Appeal Panel activities to the Scottish Courts and Tribunal Service, which was due on 1 January 2023, has now been delayed until 1 April 2023, and therefore has no financial impact on the Board’s budget or Probable Outturn for 2022/2023. 4.4. It should be noted that the probable outturn position is based on best information as at November 2022. The staffing position and the effect of inflation will continue to be monitored and the Board will be updated on any significant changes to the forecast position in the remainder of the year. 4.5. Reserves: As noted in section 4.1, in order to balance the budget in-year, there will be a transfer to Reserves of £0.061 million. At the end of 2021/2022, the Board carried forward £1.479 million into 2022/2023. Taking these together, means that a balance of £1.540 million will be carried into 2023/2024. 4.6. Barclay Funding: While the Board was allocated £0.698 million from the Scottish Government (through councils) for the current year (2022/2023), there is no agreement yet from the Scottish Government on funding for 2023/2024. While spend is being incurred on the implementation of the Barclay recommendations, the uncertainty of long-term funding means that this will be managed on an ongoing basis until future funding levels are clarified. The probable outturn position reflects the anticipated spend in the current year. Spend levels will continue to be monitored during the year and a final position noted at the year-end. 4.7. It is expected that as the recommendations from the Barclay report are implemented, costs will significantly rise in future years. The funding is normally notified alongside the Local Government Settlement. The Board will be updated as further information is known. 4.8. Period 8 Monitoring Position: As at 4 November 2022, the variance from phased budget to date is an underspend of £0.162 million. This is shown in Appendix A. 4.9. This is a continuation of the previously reported position and reflects the position as at period 8, which does not yet include the impact of the Pay Award Settlement for 2022/2023 which will be backdated to 1 April 2022. The full year impact of the 2022/2023 Pay Award is included in the Board’s Probable Outturn position. 5. Financial Implications 5.1. The financial implications are noted in section 4 of the report. 6. Employee Implications 6.1. None 8
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7. Climate Change, Sustainability and Environmental Implications 7.1. There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 8. Other Implications 8.1. The main risk associated with the Board’s Revenue Budget is that there is an overspend. The risk has been assessed as low given the detailed budget management applied. The risk is managed through four weekly Budget Monitoring Meetings at which any variance is analysed. In addition, the probable outturn exercise ensures early warning for corrective action to be taken where appropriate. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore no impact assessment is required. 9.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Paul Manning Treasurer 22 November 2022 Previous References Revenue Budget Monitoring 2020/2021 - Lanarkshire Valuation Joint Board – 27 June 2022 Revenue Budget Monitoring 2020/2021 - Lanarkshire Valuation Joint Board – 5 September 2022 List of Background Papers Revenue Budget 2022/2023 – Lanarkshire Valuation Joint Board – 6 December 2021 Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O'Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o'hagan@southlanarkshire.gov.uk 9
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Appendix A LANARKSHIRE VALUATION JOINT BOARD Revenue Budget Monitoring Report Period Ended 4 November 2022 (No.8) Annual Budget Forecast for Year Annual Forecast Variance Budget Proportion 04/11/22 Actual 04/11/22 Variance 04/11/22 % Variance 04/11/22 Note £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 3,137 2,951 186 1,748 1,549 199 under 11.4% 1 Property Costs 0 0 0 0 0 0 - n/a Supplies & Services 159 198 (39) 94 115 (21) over (22.3%) 2 Transport & Plant 0 1 (1) 0 1 (1) over n/a Administration Costs 561 562 (1) 330 330 0 over 0.0% Payments to Other Bodies 31 31 0 27 28 (1) - (3.7%) Payments to Contractors 0 0 0 0 0 0 - n/a Transfer Payments 0 0 0 0 0 0 - n/a Financing Charges 13 37 (24) 8 19 (11) over (137.5%) 3 Total Controllable Exp. 3,901 3,780 121 2,207 2,042 165 under 7.5% Total Controllable Inc. (17) (17) 0 (5) (2) (3) under recovery 60.0% Net Controllable Exp. 3,884 3,763 121 2,202 2,040 162 under 7.4% Add Non Controllable Budgets Central Support Costs 381 381 0 0 0 0 - n/a Total Budget 4,265 4,144 121 2,202 2,040 162 under 7.4% Funded By: North Lanarkshire Council (2,102.5) (2,102.5) 0 (1,227) (1,227) 0 - 0.0% South Lanarkshire Council (2,102.5) (2,102.5) 0 (1,227) (1,227) 0 - 0.0% Transfer (From) Reserves (60) 61 (121) 0 0 0 - n/a Net Budget 0 0 0 (252) (414) 151 under (64.3%) Variance Explanations 1 Employee Costs: The underspend reflects vacant posts for which the recruitment is ongoing. 2 Supplies and Services: The overspend reflects additional systems development for Barclay recommendations and higher than budgeted for costs of computer equipment maintenance. 3 Financing Charges: The overspend relates to higher than budgeted for IT leasing charges to cover the costs of both office-based desk top computers and laptops to facilitate home working, reflecting business need. 10
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Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 5 December 2022 Report by: Treasurer to Lanarkshire Valuation Joint Board Subject: Revenue Budget 2023/2024 – Lanarkshire Valuation Joint Board 1. Purpose of Report 1.1. The purpose of the report is to: [purpose] advise members of the draft budget for the coming financial year (2023/2024) [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s): [recs] (1) that the budget strategy resulting in the budget of £4.392 million being set for 2023/2024, summarised in Appendix 1, be approved; and (2) that the updated Reserves position, detailed in Table 2, be noted. [1recs] 3. Background 3.1. A Financial Strategy for 2023/2024 to 2025/2026 was approved by the Board on 27 June 2022. This report approved the 2023/2024 budget based on a number of assumptions. This paper will take the opportunity to refresh these assumptions and propose the budget for 2023/2024. 3.2. In relation to the Board’s budget strategy, the continued increase in workload across all three key business areas of the Board (Non-Domestic Valuation, Council Tax Valuation and Electoral Registration) mean that ways of maintaining service delivery and compliance with statutory duties of the Assessor and Electoral Registration Officer, against a backdrop of budgetary pressures, continue to be reviewed and are reflected in the proposals in this paper. 3.3. Following the 2022/2023 probable outturn exercise, also presented to this meeting, a balance of £0.061 million is anticipated to be transferred to Reserves at the end of this financial year. This will be added to the Reserves carried forward from the previous financial year (£1.479 million) and will mean a balance on Reserves of £1.540 million for use in 2023/2024 and beyond. This updates the previously reported position in the Financial Strategy on 27 June 2022. 3.4. Section 4 provides a reminder of the 2023/2024 Budget Strategy approved as part of the Medium-Term Financial Strategy, and an update on the assumptions used. It also includes a refresh on the level of Reserves available for 2023/2024 and beyond. 4 11
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4. 2023/2024 Budget Assumptions 4.1. The Board’s Financial Strategy (June 2022) approved a budget for 2023/2024 of £4.302 million. This included the use of £0.182 million of Reserves and was based on the following assumptions:- that the Employee Cost Budget reflects the progression of staff through pay grades, in line with agreed pay structures that price increases, pay awards and an estimated 1% reduction in contributions are managed by efficiencies generated by the Board in each year that the budget includes a staff turnover target of 4% per annum (based on prior years’ experience this is considered realistic) that the pay award is budgeted at 2% for 2023/2024, and then is assumed at 1% for the following 3 years. Pay Award was noted as an area of risk (refer 4.2) that the transfer of Valuation Appeal Panel activities to the Scottish Courts and Tribunal Service will have no financial impact (the money will be removed from the councils’ settlements and, therefore, from the income the Board receives from councils) that the Barclay funding is assumed at the same level as 2022/2023, as no information is known beyond that year that this position may be affected by further in-year underspends that have not yet been foreseen 2023/2024 Updated Assumptions 4.2. Pay Award (2022/2023): Since this Strategy was approved, the pay award for 2022/2023 has been confirmed at a level higher than the 2% budget for 2022/2023. This will mean an additional annual cost of £0.090 million, revising the budget for 2023/2024 to £4.392 million. It is proposed that this is funded by Reserves in 2023/2024 and beyond, but as this is not a recurring funding solution, efficiencies will be considered into 2024/2025 to manage this on a permanent basis. 4.3. Valuation Appeal Panel: The transfer of Valuation Appeal Panel activities to the Scottish Courts and Tribunal Service was due to transfer on 1 January 2023, but has now been delayed until 1 April 2023. The transfer will have no overall financial impact as it is anticipated that when this is processed, the expenditure budget will be removed from the councils’ settlements and from the income the Board receives from councils. 4.4. Taking into account the impact of the 2022/2023 Pay Award, Appendix 1 shows the revised budget for 2023/2024. 5. Reserves 5.1. The Board’s Strategy reported in June 2022 included the position across the Board’s Reserves. This is shown in Table 1 and shows that the Board anticipated a balance of Reserves of £0.502 million at the end of 2025/2026. Table 1 – Reserves Forecast and Strategy (June 2022) 2022/23 (year 0) £m 2023/24 (year 1) £m 2024/25 (year 2) £m 2025/26 (year 3) £m Opening Balance 1.479 1.419 1.237 0.905 Proposed Utilisation of Reserves (0.060) (0.182) (0.332) (0.403) Closing Balance 1.419 1.237 0.905 0.502 12
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5.2. However, the Reserves position in Table 1 needs to be updated to reflect the additional Reserves available following the 2022/2023 Probable Outturn (section 3.3), as well as a base assumption that the 2022/2023 increased Pay Award will be funded from Reserves in all years (section 4.2). 5.3. Table 2 updates the impact on Reserves across the 3 years of the Strategy and shows that by applying the principles noted in 4.1, and the updated availability and use of Reserves, the Board would now have a balance of £0.353 million at the end of 2025/2026. Table 2 – Reserves Forecast and Strategy – Revised December 2022 2022/23 (year 0) £m 2023/24 (year 1) £m 2024/25 (year 2) £m 2025/26 (year 3) £m Opening Balance 1.479 1.540 1.268 0.846 Proposed Utilisation of Reserves 0.061 (0.272) (0.422) (0.493) Closing Balance 1.540 1.268 0.846 0.353 5.4. This position is after a reduction in the councils’ contributions of £0.050m in 2023/2024 and 2024/2025. This still represents a significant balance. The reason it is considered appropriate to work towards holding this level of reserve relates to a risk that funding for Barclay may not be recurring. 5.5. Beyond 2025/2026, the Board will require to cover the risk of the Barclay funding being reduced or removed. Therefore a £0.353m balance of reserves is considered reasonable to mitigate this risk. 5.6. In 2025/2026, there is still a reliance on reserves (£0.493 million). As advised to the Board in June 2022, we will undertake a review of this reliance in the last year of the Strategy (2025/2026). This will be presented to the Board as required. 5.7. There is no prescribed minimum or maximum level of Reserves which should be held by a Joint Board. However, it is appropriate that the Board holds some monies in reserve which can be utilised as and when the need arises in any financial year. To facilitate this, notwithstanding the position as detailed in Table 2 / Appendix 1, any underspends which may arise in year, will be transferred to Reserves at the end of the financial year. This gives the Board flexibility in managing its budget across years. 5.8. As a body that is funded by contributions from councils under the direction of the Board, the Board will manage its budget in year with any risk items identified to the Treasurer as required. Any budget pressures and funding solution would be considered by the Assessor and Electoral Registration Officer and the Treasurer. 6. Employee Implications 6.1. There are no direct employee implications contained within this report. 7. Financial Implications 7.1. The proposed 2023/2024 Revenue Budget for the Valuation Board is £4.392 million. 7.2. This budget assumes a contribution of £0.272 million from Reserves held in the balance sheet. 13
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7.3. The Reserves balance is expected to be £1.540 million at the end of 2022/2023, as detailed in the Revenue Budget Monitoring and Probable Outturn Position 2022/2023 report, also presented to this meeting. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no climate change, sustainability or environmental implications in terms of the information contained in this report. 9. Other Implications 9.1. The main risk in setting this budget is that there is no additional Barclay funding and that the level of expenditure cannot be managed within the budget set. On behalf of the Board, the Treasurer continues to have dialogue with the Scottish Government via COSLA, to confirm funding and spend expectations. 9.2. An additional risk associated with the Valuation Board’s Revenue Budget into 2023/2024 is an overspend as a result of the increased workload across the three main service delivery areas. The risk is managed through four weekly Budget Monitoring Meetings at which any variance is analysed. In addition, the probable outturn exercise ensures early warning for corrective action to be taken where appropriate. 10. Equality Impact Assessment and Consultation Arrangements 10.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 10.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Paul Manning Treasurer 22 November 2022 Previous References Revenue Budget 2022/2023 – Lanarkshire Valuation Joint Board – 6 December 2021 Financial Strategy 2023/2024 to 2025/2026 – Lanarkshire Valuation Joint Board – 27 June 2022 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Lorraine O’Hagan, Finance Manager (Strategy) Ext: 2601 (Tel: 01698 452601) E-mail: lorraine.o’hagan@southlanarkshire.gov.uk. 14
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Appendix 1 Lanarkshire Valuation Joint Board Revenue Budget 2023/2024 Description 2022/23 Base Budget £m 2023/24 Required Budget £m Budget Movement (Inc) / Dec £m Employee Costs 3.137 3.258 (0.121) Property Costs 0.202 0.208 (0.006) Supplies and Services 0.159 0.159 0.000 Administration Costs 0.740 0.740 0.000 Payments to Other Bodies 0.031 0.031 0.000 Financing Charges 0.013 0.013 0.000 Gross Expenditure 4.282 4.409 (0.127) Income (0.017) (0.017) 0.000 Net Expenditure 4.265 4.392 (0.127) Net Expenditure Budget Funded by: Requisition from North Lanarkshire Council 2.102 2.060 0.042 Requisition from South Lanarkshire Council 2.103 2.060 0.043 Use of Monies held in Balance Sheet (c/f from previous years) 0.060 0.272 (0.212) Net Budget 0.000 0.000 0.000 15
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h??1 June Report Agenda Item Report to: Lanarkshire Valuation Joint Board Date of Meeting: 5 December 2022 Report by: Assessor and Electoral Registration Officer Subject: Progress Update 1. Purpose of Report 1.1. The purpose of the report is to:- Provide an overview of the service to members Outline current issues and service priorities Provide an update on performance Highlight issues affecting the future direction of the Joint Board [1purpose] 2. Recommendation(s) 2.1. The Board is asked to approve the following recommendation(s):- [recs] (1) that the content of the report be noted. [1recs] 3. Service Overview and Priorities 3.1. Electoral Registration 3.1.1. Annual Canvass Work is almost complete on this year’s annual canvass of electors. The tasks associated with file production including the data matching element of canvass reform, using both national testing data and local data, have been carried out with similar matching results to last year’s canvass. The first issue of canvass forms commenced the week beginning 1st August with circa 62,500 properties being issued with a canvass form where details could not be fully matched. Circa 50,800 non-responding properties received a further communication in September. Where no response was received, as with previous canvasses, further follow up action is required, including household visits. The door-to-door element of the annual canvass was able to proceed this year and has now been completed for almost 40,000 properties. Canvass reform has introduced new methods of communication - such as a telephone canvass - which count as a personal contact to a property, reducing the number of door knocks required. Some 3,586 calls have been made to properties where a telephone number is currently held. Another method of contact utilised was sending e-communications where an email address is held. Circa 3,408 emails have been issued to encourage a canvass response. The revised register is to be published on 1 December 2022. Potential electors continue to be encouraged to use the online registration service at www.gov.uk/register-to-vote. 5 17
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3.1.2. Elections Held Since Last Board Meeting No elections have been held since the last meeting of the Board. 3.2. Non Domestic Valuation A summary of information in this area can be found in Appendices 1.1 to 1.5. 3.2.1. Changes to the 2017 Valuation Roll (Running Roll) These are highlighted in Appendices 1.1 and 1.2 for the period 1 April 2022 to 1 November 2022. 3.2.2. 2005 Valuation Roll Appeals (Revaluation and Running Roll) A summary of the position with 2005 Revaluation and Running Roll appeals is contained in Appendix 1.3. 3.2.3. 2010 Valuation Roll Appeals (Revaluation and Running Roll) A summary of the position with 2010 Revaluation and Running Roll appeals is contained in Appendix 1.4. 3.2.4. 2017 Valuation Roll Appeals (Revaluation and Running Roll) A summary of the position with regards to 2017 Revaluation and Running Roll appeals is contained in Appendix 1.5. Table 2 continues to include the voluminous numbers of appeals received in connection with the coronavirus pandemic. Whilst some appeals have now been withdrawn which were lodged in relation to the pandemic, the vast majority remain outstanding. As it stands, these appeals are likely to be transferred to the Scottish Courts and Tribunals Service for future management (refer item 5.3 below, progress update to section 10 of the Non- Domestic Rates (Scotland) Act 2020). 3.3. Council Tax A summary of information in this area can be found in Appendices 2.1 to 2.4. 3.3.1. New Houses A summary of the position for the period 1 April 2022 to 1 November 2022 is contained at Appendix 2.2. 3.3.2. Proposals and Appeals Appendices 2.3 and 2.4 contain information on Council Tax proposals and appeals. Progress continues to be made in reducing the outstanding number of proposals and appeals following the increase in the number outstanding in both as a result of the pandemic. Efforts will continue to reduce numbers further prior to the transfer of the current appeals system to the Scottish Courts and Tribunals Service with effect from 1 April 2023. 4. Staffing 4.1. Since the last Board meeting and following recruitment and selection processes, three former staff members have re-joined LVJB, one as a Principal Valuer and two as Divisional Valuers. Additionally, three new Trainee Technicians have commenced their employment with the organisation. In the same period, a part-time Divisional Valuer has left the organisation to take up a position within another local government organisation, whilst two Trainee Valuers, one part-time, have left to join other Assessors’ offices. 4.2. Staff absence levels for the last year are summarised in Appendix 3.0. 18
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5. Other Matters 5.1. Complaints Received and Dealt with Since Last Progress Update Report Since the last update provided to the Board, one complaint had been received, a summary of which is as follows:- Service Area Nature of Complaint Outcome Council Tax (ref: 2022/23 – 3) Complaint received with regards to the timescales involved in effecting a Council Tax band increase. Letter of explanation issued outlining legislation regarding sold houses and reviewing bandings. Timeline explained - delays outwith LVJB control. 5.2. Complaints to the Ombudsman No decisions have been received from the Scottish Public Services Ombudsman (SPSO) since the last meeting of the Board. 5.3. Barclay Review Implementation With the Non-Domestic Rates (Scotland) Act receiving Royal Assent in March 2020, progress continues with regards to the new statutory undertakings as contained within the Act. The following is a summary of the progress in connection with the principal sections of the Act which affect matters relating to the Valuation Roll:- Section 2 – (Amends the definition of “year of revaluation” such that, after 2022, revaluations will be carried out every three years, rather than every five years). Progress update: The Scottish Government took the decision, due to the pandemic, to postpone the next revaluation to 1 April 2023, with the tone date moving to 1 April 2022. All non-domestic properties will be revalued on 1 April 2023. This means that Assessors across Scotland will set new Net Annual and Rateable Values for all non- domestic properties based on rental levels as at 1 April 2022. A draft Valuation Roll will be published at the Scottish Assessors Association’s (SAA) website (www.saa.gov.uk) on 30th November 2022. Draft valuation notices are required to be issued to proprietor/tenant/occupiers following the publication of the draft roll showing the Net Annual and Rateable Value provisionally set to take effect from 1 April 2023 for each property. LVJB is on schedule to publish the draft valuation roll, and issue draft valuation notices. A final valuation notice is scheduled to be issued in March 2023 and this will contain the final Rateable Value that rates bills will be based on. LVJB’s Revaluation Strategy Group continues to manage work associated with the non-domestic revaluation. 19
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Section 3 – (Inserts a new section into the Local Government (Scotland) Act 1975 requiring an Assessor to include a mark in appropriate entries in the Valuation Roll to show that it relates to newly built lands and heritages, or to improved lands and heritages, which the local authority will be able to use to identify properties which may be eligible for business growth accelerator relief). Progress update: Associated legislation is now in place - the Non-Domestic Rates (Relief for New and Improved Properties) (Scotland) Regulations 2022 and the Non- Domestic Rates (Valuation Roll) (Modification) (Scotland) Regulations 2022 - and procedures have been developed in order that a marker can be placed in the Valuation Roll where deemed appropriate. Section 5 – (Amends Section 19 of the Local Government (Financial Provisions) (Scotland) Act 1963 to require that certain subjects contained within parks should be entered in the Valuation Roll). The subjects to be entered are those which are occupied by a person or body other than a local authority or the Crown, or where persons may be required to pay for access to facilities or for goods or services. Progress update: Survey work continues to be undertaken to identify subjects which will be entered in the valuation roll with effect from 1 April 2023. LVJB staff continue to follow the staff guidance note developed by the SAA to ensure consistent practice throughout Scotland. Section 9 – (Amends Section 3 of the 1975 Act to allow Ministers to prescribe that Assessors must give ratepayers additional information at Revaluation.) Progress update: Development work is at an advanced stage in respect of facilitating the provision of information at the SAA Portal for the forthcoming Revaluation in connection with requirements to publish certain information as contained within the Non-Domestic Rates (Valuation Notices) (Scotland) Regulations 2022. Rented property lists have to be furnished for a range of property types, detailing the addresses of let properties considered in determining the basic rate of valuations, when draft values are published on 30th November 2022. The new requirement means that development work is being undertaken with LVJB’s local valuation software application to facilitate the data transfer to the SAA Portal. Section 10 – (Makes significant changes to the appeal arrangements enabling a “proposal” to be made to the Assessor in the first instance. Where no agreement is reached as to what should be done about a proposal an appeal may be submitted to the Valuation Appeal Committee. Whilst this section sets out the basic framework much of the detail of the procedure (including whether any fee may be charged for making a proposal or an appeal) will be contained within secondary legislation.) Progress update: Final legislation by the Scottish Government on the revised non- domestic appeal system is expected to be laid in the Scottish Parliament within the first couple of weeks in December 2022. The proposed transfer of the appeal set-up to the Scottish Courts and Tribunals Service has been delayed from 1 January 2023 until 1 April 2023. The Stakeholder Reference Group, set up to help facilitate the transfer of the duties currently undertaken by Valuation Appeal Panels, continues to consider the issues surrounding the significant change to the appeals system. LVJB continue to monitor activity on the transfer to the new appeal set-up, and will review current business processes to align with the new legislative requirements in time for their implementation on 1 April 2023. 20
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Section 26 – (Gives powers for Assessors to issue Assessor Information Notices (AINs) requiring the return of information which the Assessor may reasonably require for the purposes of exercising his/her functions in relation to non-domestic rates in respect of the lands and heritages set out in the notice. Information may be requested from the proprietor, tenant or occupier or any person who the Assessor thinks has the information.) Progress update: Procedures continue to be implemented in connection with AINs and, in particular, the new civil penalties regime. The SAA continue to emphasise the importance of returning AINs, in particular with reference to the possibility of civil penalties being raised, to relevant parties at meetings of the Scottish Ratepayers’ Forum, and Scottish Ratepayers’ Surveyors’ Forum. Section 30 – (Provides for civil penalties to be issued for failure to return requested information within certain time periods.) Progress update: As update above regarding Section 26. The SAA continues to work positively with the Scottish Government and stakeholders to consider the detailed application of the reforms, and will continue to do so via the various forums set up for stakeholder engagement purposes. 5.4. Coronavirus Pandemic LVJB’s management team remain vigilant to the on-going risks associated with the virus, in particular as we move into the winter period. 6. Employee Implications 6.1. See 4 above. 7. Financial Implications 7.1. None. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no climate change, sustainability, or environmental implications in terms of the information contained in this report. 9. Other Implications 9.1. There are no implications for risk in terms of the information contained in this report. 10. Equality Impact Assessment and Consultation Arrangements 10.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function, or strategy and, therefore, no impact assessment is required. 10.2. There is no requirement for consultation in respect of this report. 11. Privacy Impact Assessment 11.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. Gary Bennett BSc MSc AEA (Cert-Scotland) MRICS IRRV (Hons) Assessor and Electoral Registration Officer 22 November 2022 21
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Previous References Progress Update Report for Board meeting of 5 September 2022. List of Background Papers None Contact for Further Information If you require further information, please contact:- Gary Bennett, Assessor and Electoral Registration Officer Phone: 01698 476078 E-mail: assessor@lanarkshire-vjb.gov.uk 22
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Alterations made to the Valuation Roll (including appeal adjustments) between 01/04/2022 and 01/11/2022 Area AS AT 01/04/2022 ADDED DELETED ALTERED AS AT 01/11/2022 SUBJECTS RV SUBJECTS RV SUBJECTS RV SUBJECTS RV SUBJECTS RV North Lanarkshire 10,358 288,082,270 247 757,220 181 1,297,335 81 -570,205 10,424 286,971,950 South Lanarkshire 10,952 693,403,145 185 966,610 161 1,246,290 100 -334,155 10,976 692,789,310 LVJB total 21,310 £981,485,415 432 £1,723,830 342 £2,543,625 181 -£904,360 21,400 £979,761,260 Appendix 1.1 23
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Summary of time taken to make alterations (excluding appeal adjustments) to the Valuation Roll Period: 1 April 2022 to 1 November 2022 Area Total altered altered < 3 months altered 3 to 6 months altered > 6 months No. No. %age No. %age No. %age North Lanarkshire 299 236 78.93% 21 7.02% 42 14.05% South Lanarkshire 323 221 68.42% 48 14.86% 54 16.72% LVJB totals 622 457 73.48% 69 11.09% 96 15.43% Appendix 1.2 24
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Valuation Roll Appeals: Revaluation and Running Roll 2005 1. Revaluation Appeals Area Appeals received since 2005 Valuation Roll Appeals resolved as at 1 November 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 November 2022 North Lanarkshire 3,921 3,918 0 £0 3 £76,150 3 South Lanarkshire 3,148 3,147 0 £0 1 £50,800 1 LVJB total 7,069 7,065 0 £0 4 £126,950 4 2. Running Roll Appeals Area Appeals received since 2005 Valuation Roll Appeals resolved as at 1 November 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 November 2022 North Lanarkshire 2,023 2,022 0 £0 1 £36,500 1 South Lanarkshire 1,695 1,693 0 £0 2 £90,050 2 LVJB total 3,718 3,715 0 £0 3 £126,550 3 Appendix 1.3 25
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Valuation Roll Appeals: Revaluation and Running Roll 2010 1. Revaluation Appeals Area Appeals received since 2010 Valuation Roll Appeals resolved as at 1 November 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 November 2022 North Lanarkshire 4,460 4,460 0 £0 0 £0 0 South Lanarkshire 3,103 3,102 0 £0 1 £46,500 1 LVJB total 7,563 7,562 0 £0 1 £46,500 1 2. Running Roll Appeals Area Appeals received since 2010 Valuation Roll Appeals resolved as at 1 November 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 November 2022 North Lanarkshire 5,480 5,480 0 £0 0 £0 0 South Lanarkshire 6,727 6,727 0 £0 0 £0 0 LVJB total 12,207 12,207 0 £0 0 £0 0 Appendix 1.4 26
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Valuation Roll Appeals: Revaluation and Running Roll 2017 1. Revaluation Appeals Area Appeals received since 2017 Valuation Roll Appeals resolved as at 1 November 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 November 2022 North Lanarkshire 4,728 4,710 0 £0 18 £2,761,475 18 South Lanarkshire 4,553 4,526 0 £0 27 £87,047,700 27 LVJB total 9,281 9,236 0 £0 45 £89,809,175 45 2. Running Roll Appeals Area Appeals received since 2017 Valuation Roll Appeals resolved as at 1 November 2022 Appeals heard but awaiting stated case for appeal to Lands Valuation Appeal Court Rateable Value of Appeals in process of appeal to LVAC Appeals outstanding awaiting determination of Lands Tribunal for Scotland Rateable Value of Outstanding Appeals awaiting determination of LT Appeals Outstanding as at 1 November 2022 North Lanarkshire 4,620 1,028 0 £0 3 £29,250 3,592 South Lanarkshire 4,999 1,058 0 £0 30 £804,027,125 3,941 LVJB total 9,619 2,086 0 £0 33 £804,056,375 7,533 Appendix 1.5 27
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Council Tax Subjects as at 01/11/2022 ENTRIES AS AT 01/04/2022 ADDITIONS DELETIONS CURRENT ENTRIES BAND 'D' EQUIVALENT BAND NORTH SOUTH TOTAL NORTH SOUTH TOTAL NORTH SOUTH TOTAL NORTH SOUTH TOTAL NORTH SOUTH TOTAL A 53037 36190 89227 12 17 29 5 15 20 53044 36192 89236 35364 24129 59493 B 37845 30751 68596 154 42 196 5 7 12 37994 30786 68780 29552 23945 53497 C 19903 26768 46671 231 122 353 6 9 15 20128 26881 47009 17892 23895 41787 D 17722 21724 39446 202 246 448 1 1 2 17923 21969 39892 17923 21969 39892 E 17158 20390 37548 143 228 371 3 4 7 17298 20614 37912 22728 27085 49813 F 10085 13307 23392 105 230 335 5 4 9 10185 13533 23718 16551 21991 38542 G 3090 6819 9909 8 115 123 0 0 0 3098 6934 10032 6067 13579 19646 H 162 579 741 0 3 3 1 1 2 161 581 742 394 1423 1817 TOTAL 159002 156528 315530 855 1003 1858 26 41 67 159831 157490 31321 146471 158016 304487 'D' EQIV. 145589 156751 302340 909 1304 2214 28 39 67 146471 158016 304487 JOINT BOARD TOTALS 01/04/2022 01/11/2022 Increase TOTAL CHARGEABLE ENTRIES North 159002 159831 829 South 156528 157490 962 Total 315530 317321 1791 BAND 'D' EQUIVALENT North 145589 146471 882 South 156751 158016 1265 Total 302340 304487 2147 Appendix 2.1 28
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Summary of time taken to enter new houses in Valuation (Council Tax) List Period: 1 April 2022 to 1 November 2022 Area Total added added < 3 months added 3 to 6 months added > 6 months North Lanarkshire 855 750 87.72% 96 11.23% 9 1.05% South Lanarkshire 1003 933 93.02% 50 4.99% 20 1.99% LVJB totals 1858 1683 90.58% 146 7.86% 29 1.56% Appendix 2.2 29
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Summary of Council Tax Proposals/Appeals received and dealt with as at 1 November 2022 Valid Proposals/Appeals outstanding @ 1 April 2022 Proposals/Appeals received since 1 April 2022 Proposals/Appeals completely resolved 01/04/2022 to 01/11/2022 Outstanding balance North Lanarkshire 38 24 56 6 South Lanarkshire 103 43 120 26 LVJB total 141 67 176 32 Invalid Proposals/Appeals outstanding @ 1 April 2022 Proposals/Appeals received since 1 April 2022 Proposals/Appeals completely resolved 01/04/2022 to 01/11/2022 Outstanding balance North Lanarkshire 46 45 67 24 South Lanarkshire 87 83 127 43 LVJB total 133 128 194 67 Combined Proposals/Appeals outstanding @ 1 April 2022 Proposals/Appeals received since 1 April 2022 Proposals/Appeals completely resolved 01/04/2022 to 01/11/2022 Outstanding balance North Lanarkshire 84 69 123 30 South Lanarkshire 190 126 247 69 LVJB total 274 195 370 99 Appendix 2.3 30
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Summary of resolution of Council Tax Proposals/Appeals Between 1 April 2022 and 1 November 2022 Valid Proposals/Appeals completely resolved 01/04/2022 to 01/11/2022 Number withdrawn Number abandoned Number adjusted Number dismissed by VAC Number adjusted by VAC North Lanarkshire 56 20 0 21 15 0 South Lanarkshire 120 61 0 31 27 1 LVJB total 176 81 0 52 42 1 Invalid Proposals/Appeals completely resolved 01/04/2022 to 01/11/2022 Number withdrawn Number abandoned Number adjusted Number dismissed by VAC Number adjusted by VAC North Lanarkshire 67 1 55 1 10 0 South Lanarkshire 127 4 103 0 20 0 LVJB total 194 5 158 1 30 0 Combined Proposals/Appeals completely resolved 01/04/2022 to 01/11/2022 Number withdrawn Number abandoned Number adjusted Number dismissed by VAC Number adjusted by VAC North Lanarkshire 123 21 55 22 25 0 South Lanarkshire 247 65 103 31 47 1 LVJB total 370 86 158 53 72 1 Appendix 2.4 31
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ABSENCE MANAGEMENT STATISTICS Self Certified Medically Certified Unauthorised Total Total Month Absence No of Days Work days available No of Days % No of Days % No of Days % No of Days Work Days Avail % Month % November 2021 29 2.1% 66 4.7% Nil 0.0% 95 1404 6.8% November 2020 87 1316 6.6% December 2021 13 0.9% 83 5.7% Nil 0.0% 96 1459 6.6% December 2020 85 1442 5.9% January 2022 0 0.0% 52 3.9% Nil 0.0% 52 1344 3.9% January 2021 28 1315 2.1% February 2022 22 1.7% 44 3.5% Nil 0.0% 66 1262 5.2% February 2021 36 1252 2.9% March 2022 18 1.3% 84 6.0% Nil 0.0% 102 1402 7.3% March 2021 50 1504 3.3% April 2022 1 0.1% 48 3.8% Nil 0.0% 49 1262 3.9% April 2021 54 1441 3.7% May 2022 17 1.3% 7 0.5% Nil 0.0% 24 1345 1.8% May 2021 89 1317 6.8% June 2022 39 2.9% 60 4.5% Nil 0.0% 99 1347 7.3% June 2021 88 1368 6.4% July 2022 24 1.9% 66 5.2% Nil 0.0% 90 1277 7.0% July 2021 72 1358 5.3% August 2022 20 1.4% 90 6.4% Nil 0.0% 110 1401 7.9% August 2021 74 1356 5.5% September 2022 16 1.2% 77 5.6% Nil 0.0% 93 1373 6.8% September 2021 55 1383 4.0% October 2022 6 0.4% 63 4.7% Nil 0.0% 69 1335 5.2% October 2021 65 1367 4.8% Averages for 12 months 17 1.3% 62 4.6% Nil 0.0% 79 1351 5.8% 59 1344 4.4% Appendix 3 32