The Independent R&B Discussion Group met on 28 October 2024 to review the latest developments in council tax and business rates benchmarking. The session focused on a demonstration of Liberata’s new benchmarking tool, designed to assist local authorities in analysing and improving their revenue collection processes. This tool provides a valuable perspective on council tax and business rates collection performance, taking into account the impact of local deprivation levels on expected collection outcomes. The tool’s main aim is to help councils establish realistic collection targets that reflect local socio-economic conditions, supporting data-driven adjustments to enhance collection performance.
John O’Neill from Liberata presented the benchmarking tool, explaining its capabilities in detail. He highlighted its utility for councils to assess performance against other councils with similar deprivation levels and demographics. The tool, which is freely available to local authorities, allows them to review and interpret council tax and business rates data, benchmarking against expected trends based on local levels of affluence or deprivation. John noted the significant impact deprivation can have on collection outcomes, particularly in deprived areas where councils often face additional challenges in meeting targets. Future updates to the tool will add further detail, with plans to incorporate data on staffing allocations and system efficiencies that may affect collections. John invited local authority feedback to guide the tool’s development, emphasising that user input will play a key role in addressing data needs and expanding its features.
Members contributed a range of perspectives, with Gareth Morgan querying the inclusion of Council Tax Reduction (CTR) minimum payment data. He suggested that this additional data could enhance the tool’s predictive capacity, allowing councils to make more precise assessments of collection potential. Gareth also proposed that the tool could eventually be used for modelling purposes, enabling councils to simulate policy changes and evaluate potential outcomes before implementation. Bob Wagstaff from PSPS added to the conversation, sharing insights on the volatility of business rates collection in areas with large businesses, which can heavily influence overall results. He noted that the unexpected closure of a major business can create a significant financial burden for councils, distorting performance trends.
The group also discussed anticipated government policy changes, particularly the phasing out of COVID-era business rates reliefs for the hospitality sector. Kevin Stewart, formerly of local government, raised concerns that many businesses, especially in hospitality, may face challenges when these temporary reliefs end, potentially affecting local economies and councils’ financial stability. With pubs, restaurants, and retail establishments particularly vulnerable, the group observed that councils in high-deprivation areas may be disproportionately affected. Paul Howarth added to this, noting the broader challenges councils face when support measures are withdrawn, forcing communities to adapt to the financial strain.
Tom Clark highlighted the efficiencies achieved by councils operating shared service arrangements, which often have a positive effect on collection success. He observed that councils with integrated service teams often perform better than those with fewer resources. John acknowledged that data collected could eventually provide insights into optimal staffing levels, especially where councils with similar demographics are seeing different outcomes.
Malcolm Gardner concluded the meeting by recognising the complexities councils face in balancing hard data with local policy choices, particularly in areas of high deprivation where a focus on social support may take precedence over strict enforcement. He noted that these considerations are critical to interpreting benchmarking data accurately. Looking forward, the group plans to meet again for a budget review, which will be dedicated to analysing the government’s upcoming budget and its implications for council tax and business rates. This session promises to be essential for local authorities as they navigate changes in financial support and establish priorities for the coming year.
Next Monday’s session will be an analysis of how the Budget will affect revenues and benefits services.
The recording can be found at https://bit.ly/3AjwuAu.