Decision Maker: Andy Brown (Corporate Director Resources & Deputy Chief Executive)
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
To approve the rescheduling of council tax and
business rate instalments for those most adversely affected by
COVID 19.
This decision would in other circumstances be
taken by Cabinet. However, in circumstances where Cabinet is unable
to meet to expedite its functions in a timely manner during the
COVID-19 pandemic, this decision is being taken in accordance with
the power referred to under background below in consultation with
the Council’s Chief Executives and the Leader. This decision
will be reported to the next meeting of Cabinet.
The decision was made to enable those most adversely affected by
COVID 19 to contact the Council and defer payment of both council
tax and business rates for April and May and recalculate any
instalments from June 2020 to March 2021. The decision was taken
because of the lockdown being declared while bills for both council
tax and business rates were arriving on doorsteps. The decision was
widely publicised and implemented by several councils. It generated
over two thousand phones calls and a similar number of e-mails.
Within a fortnight it is estimated that around 4,000 households
took up the offer. Each household or business was sent a
recalculated bill, giving breathing space and taking away the
burden of payment from those who had suddenly lost their income.
The breathing space would also give time for households and
businesses to either claim benefits from the council, await grants
or take offers of support from central government.
I confirm that in making this decision I have considered the
following in line with Wiltshire Council’s
Constitution:
Key decision requirements: yes
Views of relevant cabinet member(s), committee chairman, area
board(s): yes
Consideration of the area boards and delegated decision checklist
for officers on the issue of when and how to involve local
councillors and area boards in decisions about local services:
yes
Implication of any council policy, initiative, strategy or
procedure:
Consultation in accordance with requirements and expectations of
consultation with the public: yes
Range of options available:
yes
Staffing, financial and legal implications:yes
Risk assessment: yes
Involvement of statutory officers and/or directors:yes
Regional or national guidance from other bodies:yes
The council’s constitution:yes
This contract is suitable for execution under the e-signature
process:NA
Consideration was given to resetting
everyone’s instalment plan. Conversations with Software
suppliers confirmed this was not a facility they were willing to
provide, especially when they were being asked to deliver several
other emergency measures. Their only suggestion was to undertake a
complete re-run of the annual billing process. This would have
meant rebilling over 200,000 households and 15,000 businesses at
considerable cost in both materials and in officer time. The
advantages of offering the deferral scheme rather than enforcing
mass recalculations was to engage with customers and where
possible, reassure, collect contact details and sign-post them to
other methods of support.
The offer was announced just in time for those who wanted to avoid
a direct debit payment on 1st April 2020, and because of prompt
action less than 650 payments were returned for both council tax
and business rates in comparison to the 62,000 collected. On 15th
April almost 60,000 payments were collected with less than 400
rejected. The number of rejections were lower than at the same time
the year before.
There will be impact a significant impact on cash flow and the
ability to model income based on established monthly monitoring and
historical patterns. The number of deferrals is not an indication
of non-payment. Typically, those with the largest debts tend not to
engage with the council at all. There is however encouraging signs
that many want to support the council through prompt payment. This
discretionary deferral scheme offers the most cost effective and
direct help to a relatively small number of households and
businesses who are most affected.
Conflict of Interest: Not applicable
Background: Pursuant to paragraph 4 of Part 3 Section D, the Directors of Wiltshire Council are empowered to take all necessary decisions in cases of emergency. This decision is being taken by Andy Brown using these powers in circumstances where the Director concerned believes that there is a risk of damage to property, a threat to the health or wellbeing of an individual and/or that the interests of the Council may be compromised if this decision is not otherwise taken.
Contact: Andy Brown, Corporate Director Resources & Deputy Chief Executive (S.151 Officer) Email: andy.brown@wiltshire.gov.uk Tel: 01225 713070.
Publication date: 02/06/2020
Date of decision: 24/04/2020
Accompanying Documents: