Agenda item

To report to the Scrutiny Committee on the performance of the Finance Department.

•           To accept the report and to note the observations. 

•           To accept that a Council Tax Premium Exemption Policy needs to be drawn up

•           That consideration needs to be given to whether there is a role for the Scrutiny Committee in the creation of the policy

•           To ask the Finance Department to share data in relation to Council Tax prosecutions with members.

The report was submitted by the Cabinet Member, noting that the purpose of the report was to provide an update on the field. It was expressed that the department was leading on 2 priorities in the Council Plan - Managing the Impact of National Budgetary Cuts and the Digital Plan. It was reported that progress was seen on both plans.

It was noted, in terms of measuring the whole department's performance, that 12% reported amber, which had received further attention as part of the measuring performance discussions, and 12% reported red, which was a cause for concern being updated regularly, reviewing whether there was a need to present a new measure.

Attention was drawn to those measuring as red. In terms of the Income Service, it was highlighted that the balance of the value of various debts over 6 months was almost £2m. It was expressed that a comprehensive review of the situation of old debts, as well as the implementation processes continued.

In the Taxation Service where the other two measures reported red, it was noted that the Ffordd Gwynedd review was being held to strengthen recovery arrangements, as the collection rates for Council Tax and Non-domestic Rates were lower than what they had been historically. It was explained that the reduction in the collection rates was also partly due to the high number of self-catering holiday units that did not reach the criteria of 182 days for Business Rates transferred back to Council Tax during the second half of the year and they had been backdated and therefore a high percentage remained unpaid by the end of March 2025.

During the discussion, the following observations were made: 

Many observations were received about the reduction in Council tax collection as a result of many houses changing to become holiday units paying non-domestic taxes and the impact of not reaching the threshold of the number of days to let a holiday accommodation under the new rules. The Head of Department noted that this was as a result of decisions by the District Valuer's Office which had been backdated and presented late in the financial year. It was noted that there had been a lack of communication which meant huge bills for individuals as a result of the premium and the department was aware of the mental anguish that this had created.

Committee Members noted the need for an Exempt Policy as this had an impact on many residents and enterprises within the county which highlighted an unfair situation. It was expressed that it had to be created to refine the exemption to provide a level of fairness and to have a level of flexibility in the tax bills sent out. The department responded, noting that it was a very complex situation, but the department was working to submit a policy and guidance in the autumn, but tax collection was essential to fund services. It was explained that the department needed to be careful as individuals could use it as a way to avoid paying taxes. It was noted that the arrangement was rigid without an exemption policy. It was asked for any policy to be presented to the Committee for discussion.

When discussing the same field, it was noted that there was a need for better discussions between the departments as the planning department would give planning permission to all types of camping sites, the finance department sent bills out to individuals and the economy department was trying to develop sustainable tourism. The need for the departments to discuss with each other further was noted.

It was asked for further information about how many individuals were in the lowest tax bands who had problems paying, and how many were being taken to court for not being able to pay. In response, it was noted that the information would be shared with the Committee. It was noted that specific arrangements were in place and support was available, but individuals had to ask for this support.

It was asked, in terms of the Digital Plan, how confident was the department that the Council's new payroll system would be in place when the old system came to an end at the end of 2026. The department responded, noting that there was no choice, and it had to be in place and that steps had been made to ensure that the plan was progressing, such as starting the procurement element, as well as receiving the Cabinet's approval to get one-off funds to be funded.

RESOLVED

·       To accept the report and to note the observations.

·       To accept that a Council Tax Premium Exemption Policy needs to be drawn up

·       That consideration needs to be given to whether there is a role for the Scrutiny Committee in the creation of the policy

·       To ask the Finance Department to share data in relation to Council Tax prosecutions with members.