INSIGHT

INSIDE: Technology special • The President’s golf challenge • It’s a funny old world • Running the Institute

SEPTEMBER 2013 £5.50 www.irrv.net

ISSN

136

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Scotlandin focusWe preview this year’s Scottish Conference and Exhibition; David McLaughlin of event sponsors, Scott+Co, presents the challenges of collecting in a cold climate; and Ian Ballance reflects on a career of twists and turns

The monthly journal of the Institute of Revenues, Rating & Valuation

IRRV INSIGHT

Managing Editor

John Roberts

Editorial Director

Lester Dinnie

Art Director

Don Tregartha

Designers

Clare Barker

Roddy Clenaghan

Copy Editor

Vicki Chastney

Publisher

Tregartha Dinnie

Ltd

IRRV

Chief Executive David Magor OBE IRRV (Hons) Northumberland House 5th Floor 303-306 High Holborn London WC1V 7JZ T 020 7831 3505 E enquiries@irrv.org.uk W www.irrv.net

Enquiries Membership 020 7691 8996 Conferences 020 7691 8987 Subscriptions 020 7691 8996

Advertising T 020 7691 8979 E sales@irrv.org.uk

Editorial John Roberts IRRV (Hons) T 07952 659 258 E jcroberts54@hotmail.com

Tregartha Dinnie Ltd Ibex House 5 Keller Close Kiln Farm Milton Keynes MK11 3LL T 01908 306500 W www.tregartha-dinnie.co.uk

IRRV INSIGHT is produced by Tregartha Dinnie Ltd on behalf of the IRRV.

Unless otherwise indicated, copyright in this publication belongs to the IRRV.

September 2013 ISSN 1361-1305

©IRRV 2013. Reproduction in whole or in part of any article is prohibited without prior written consent. The views expressed in this magazine do not necessarily represent the views of the Institute. Whilst all due care is taken regarding the accuracy of information, no responsibility can be accepted for errors. Any advice given does not constitute a legal opinion.

Feature 14

President’s golf challengeDave Chapman chronicles his Presidential

charity golf endurance challenge

Cover story 18

Scotland in focusWe preview this year’s Scottish Conference

and Exhibition; David McLaughlin of event

sponsors, Scott+Co, presents the challenges

of collecting in a cold climate; and Ian Ballance

reflects on a career of twists and turns

Feature 24

Technology specialWillingness to transact online is still a bit of a

mystery, discovers Simon Bailey, while the

Global Brands Protection team’s message

is that consumers need confidence!

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Your IRRV Council:

IRRV PRESIDENT David Chapman IRRV (Hons)

JUNIOR VICE PRESIDENT Kevin Stewart FIRRV MAAT MCMI

SENIOR VICE PRESIDENT Richard Harbord MPhil CPFA FCCA IRRV (Hons) FIDP FBIM FRSA

HONORARY TREASURER Allan Traynor FCCA IRRV (Hons)

Phil Adlard Tech IRRV MlnstLM MCMI

Alan Bronte FRICS IRRV (Hons)

Robert Brown BSc FRICS FIRRV

Tracy Crowe CPFA FIRRV

Carol Cutler IRRV (Hons)

Tom Dixon RD BSc (Est Man) FRICS IRRV (Hons)

Ian Ferguson IRRV (Hons)

Geoff Fisher FRICS (Dip Rating) IRRV (Hons) REV

Richard Guy FRICS (Dip Rating) FIRRV

Mary Hardman IRRV (Hons) FRICS MCMI

Gordon Heath BSc IRRV (Hons)

Julie Holden IRRV (Hons) MCMI CMg

Jim MaCafferty IRRV (Hons)

Kerry Macdermott IRRV (Hons)

Tony Masella MRICS MCIOB FIRRV AFA F.Inst.AM

Maureen Neave Tech IRRV

Roger Messenger BSc (Es Man) FRICS FIRRV MCIArb REV

Nick Rowe IRRV (Hons)

Peter Scrafton FIRRV FCIArb MRSA (Hons)

Angela Storey Tech IRRV MCMI

Bob Trahern IRRV (Hons)

Features

Editor’s welcome

As the first signs of autumn appear in the trees, what better venue is there to see them than the delightful surroundings of Crieff Hydro, where once again the Scottish Conference is being held early this month?

This year’s flagship Scottish event is being held in association with the International Property Tax Institute, who are holding their conference in conjunction with the IRRV, not for the first time, building on a long standing par tnership between two of the property and taxation world’s leading organisations. Insight brings you an extended ‘cover story ’ featuring the event, and combining it with a few reflections from recently retired Ian Ballance, a key player for many years in Scottish valuation activities.

Alongside many of our regular features, this month’s INSIGHT also provides a light-hearted look at the work of President Dave Chapman, in the form of a blow-by-blow account of his charity golf challenge! Technology also features heavily in this edition, with another extended feature, this time focusing on Simon Bailey ’s investigations into online transactions, and a groundbreaking initiative designed to verify websites and protect the user and owner alike.

Peter Scrafton concludes his opinion piece on charity rate relief, and the benefits agenda is well represented too, with Moira Hepworth’s summary of the IRRV’s Benefits Faculty Board activity, the DWP ’s monthly update on welfare reform, and Julie Holden’s challenging ‘Viewpoint ’ questioning of the right to claim benefits.

All in all, another thought-provoking and informative edition of your Institute membership magazine – enjoy!

John Roberts IRRV (Hons) is Managing Editor of the Institute’s magazines

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Regular items

What’s in the next issue... – incoming IRRV President Richard Harbord is

under the spotlight

– collection and enforcement special feature

– data sharing from Ibrahim Hasan

Chief Executive’s notes 05

News and events 06

Education and membership 08

Running the Institute 11

It’s a funny old world 12

From the archives 13

Faculty Board report 16

Student focus 17

Back office processing 22

Welfare reform 23

Management 28

Scrafton’s law 29

Doherty’s despatch 32Whether it’s additional income or

reduced grants, it’s never good news

for local authorities, says Pat Doherty

Viewpoint 34

A message from the Deputy Chief Executive.

Log in to ‘magazines’ in themember area of www.irrv.net to hear the message online.

“ Welcome to the latest edition of Insight!”

Telford International Centre, 2 – 4 October The Institute are now taking bookings for this year’s annual conference in Telford. With Universal Credit scheduled to be launched on the 7th October 2013, delegates will have an opportunity to find out the latest thoughts of Government and seek clarification on any issues. In addition, speakers will address all the changes that have taken place in the profession since 1st April.

Wednesday will consist of plenary sessions; speakers already confirmed include Lord Freud (Welfare Reform Minister), Peter Kenway (New Policy Institute), Councillor Peter Fleming (Sevenoaks DC) and Alan Murdie (formerly of Zacchaeus 2000 Trust). The programme for Thursday will have three streams, Local Taxation & Revenues, Benefits and Valuation. Confirmed speakers to date include Professor Zellick (President of the Valuation Tribunal Service), The Earl Of Lytton, Rob Whiteman (CIPFA), Richard Harbord (Boston BC) and Huw Meredith (DWP).

We offer outstanding value for money: our full conference package includes buffet lunches and refreshments, wine receptions and admission to our Gala Dinner and Awards night. This year, the evening will be hosted by acclaimed comedian Dave Spikey.

Full conference Passes available from only £445.50 + VAT.Day passes available from only £175.00 + VAT.

SPECIAL OFFER – 3 MONTHS COMPLIMENTARY MEMBERSHIP TO NON MEMBERS: The IRRV is pleased to offer three months complimentary membership (October 2013 to December 2013 ) to non-members of the Institute when they attend the Annual Conference on a day pass.This special offer entitles delegates to the institutes discounted member rate.

IRRV Annual Conference and Exhibition 2013The Changing Face of Service Delivery

For more information on this and all the special offers available at this year’s event please visit:

www.irrv.net/conferences

2 – 4 October The Institute are now taking bookings for this year’s annual conference in Telford.

delegates

clarification on any issues. In addition, speakers will address all the changes that

Lord Freud

3 FOR 2 ON ALL FULL

CONFERENCE PASSES

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5David Magor OBE IRRV (Hons) is Chief Executive of the Institute

It appears we are in good hands with the creation of the

‘Local Government Universal Credit Partnership Forum’.

This is under the control of the new Director General for

Universal Credit, Howard Shiplee. Looking at the attendees

at the first meeting, it is disappointing that, with a very small

number of exceptions, it is drawn from those who are remote

to the customer interface and lack the detailed knowledge to

challenge the officials from the DWP.

We are told this group will have close links and regular debriefs

from the Programme Board which oversees UC delivery. The

new Director General is very keen to build better relationships

and have a more structured dialogue with local government

and the devolved administrations. This is indeed good news,

providing he delivers his promise. Perhaps one of the lessons

he needs to learn very quickly is that communication is the key. By communication I don’t mean dialogue with small

exclusive groups, but an open flow of authenticated regular

information to all stakeholders. Why not start with regular

open webinars, giving the latest news from the oracle

rather than drip fed misinformation through third parties?

Quite simply, there are too many groups giving uncoordinated

information to selected individuals.

One of my main concerns is the strategic direction of the

programme, and involvement of local government through the

Local Support Services Framework (LSSF). Who exactly

owns the vision? What is the latest thinking on the overall UC

programme following the appointment of the new Director

General? What is his plan to bring stability and purpose to the

meandering decision making? Local authorities and customers

want to see the full migration plan with a clear message as to

when UC will arrive in their areas. They also need certainty

on the finance issue – when will the funding for the LSSF be

announced? Why not start with a simple ‘new burdens’ style

approach, similar to that adopted in England by CLG in funding

council tax reduction? A straightforward and significant ‘start up’ grant for the first two years, followed by a detail formula

is the answer.

This challenge of UC is similar to planning the Olympics, the

football World Cup and the Tour de France all at the same

time in one location with free entry to all events! All we

need is Seb Coe, Mo Farah, Usain Bolt, David Beckham, Chris

Froome and Bradley Wiggins all rolled into one – come on,

Howard, show us what you are made of!

Chief Executive’s notes

“ By communication I don’t mean dialogue with small exclusive groups, but an open flow of authenticated regular information to all stakeholders.”

Another false dawn as Universal Credit approaches? ...David Magor sincerely hopes not.

From October Universal Credit (UC) will begin in earnest. The Minister for Welfare Reform, Lord Freud, has signalled the ‘official’ start of the biggest reform to social security for 60 years.

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News and events

Reg Kilpatrick, Director of the Welsh

Government’s Local Government and Public

Service Department, spoke on the future of the

council tax reduction scheme in 2014/15. As

a backdrop, he advised that Local Government

Minister Lesley Griffiths had stated that looking

ahead, English style budget settlements were

likely to be indicative for Wales. The new council tax reduction scheme may look similar to the

old council tax benefit scheme, he said, but that

belied the very significant and complex work

undertaken collectively by local government to

ensure it was delivered on time. “Ministers were

very impressed with their local government

colleagues for their work in achieving this”,

he reported. The politics of getting the single

national reduction scheme passed in time had

been fraught, but provision of £22 million from

the Welsh Government to enable full entitlement,

as under the old system, meant that the

Regulations were passed at the eleventh hour.

Mr Kilpatrick referred to Lesley Griffiths’s

comments that she wanted this partnership

approach to continue – “Welsh Government

and local government need to take shared

responsibility for the delivery of the council tax

reduction scheme. After all, the scheme provides

support to claimants in meeting their locally

determined council tax liability.” The future

pointed to a continued national approach,

as few in Wales were impressed with England’s

“patchwork, postcode support for the vulnerable”.

However, the present financial plan was not

sustainable. A review had been commissioned

to produce clear recommendations for moving

to a more sustainable and equitable scheme,

in difficult, unpredictable and challenging

conditions. That review would be driven by the

need for low administrative costs, simplicity,

fairness, impact on citizens, and affordability.

Who would meet the shortfall presently covered

by Welsh Government remained to be seen.

“How radical can we, or should we be? It is easy

to say, ‘throw away what we have and start

again’; but it is a different matter when taking

the matter before Welsh Assembly members.”

Mr Kilpatrick acknowledged a delegate

comment that any new system had to be ‘nailed’

early, to avoid local authorities changing after

budgets and collection rates had been set.

Huw Meridith, Head of Local Authority Liaison

for the DWP’s Universal Credit (UC) programme,

provided an update on UC implementation and

on the Local Support Service Framework.

Kevin Spice of Angelsey Council asked Mr

Meredith during question time about how

support was to be given to clients who

were unable to interact with the UC system.

Reference had been made to providing a

two month ‘hand-holding’ period, after which

claimants would transfer to the main UC system.

How would the system address the difficulties

that would be generated in this approach? Mr

Meredith stated the need to be clear about the

distinction between the two month switchback

regarding payments to landlords and the bigger

picture in supporting people. The Local Support

Service system recognised that many people

will have difficulties of various types. It would

allow and enable support from DWP and local

authorities and other agencies. The ambition

was to nudge people to the mainstream, but it

was perfectly understandable that the system

will need to be tailored to some peoples’

individual needs – these needs would not be

linked to any two month ‘cut-off’. The overall

message was that the LSS framework was there

to provide help for those who need it, from a

collaboration of local partners.

John Rae, Director of Resources for the Welsh

Local Government Association, shared his

thoughts on the budget, spending round and

the prospects for local government finances.

“Off we merrily sail into uncharted waters over

the next six to seven years”, was Mr Rae’s opening

remark! The spending round outcomes meant

that local authority budgets would no longer be

protected as they had been in recent years; and

that the indicative figures for 2014/15 could no

longer be considered as a basis on which to plan.

Looking over the border into England revealed

that the one third real terms reduction in funding

over and above the 2010 spending review had

reportedly left 12% of councils under financial

stress. Factoring English type reductions would

Moira Hepworth brings us highlights from the 2013 Wales Conference

mean budget reductions of 4% per

annum over four years. And what if the

current spend on protected areas such as

education and social services continued

to rise? One strategy would be to focus

on issues such as more preventative

care and more integration of services.

The forthcoming review of public service

governance would provide objective assessment

of the extent to which current arrangements

were fit for purpose – and to propose an optimal

model of governance and delivery for Wales. Was

the map going to change as a result? “There is a

view that we cannot continue to do things twenty-

two times over. Local government reorganisation

is one of the many questions being asked in the

review”, John concluded.

John Berry is Head of Strategy and Change

Management at the VOA. His presentation

covered VOA planning for the council tax

reduction schemes, and other current council tax issues. The VOA’s volume of enquiries at

billing time had increased 100%, due to the

council tax reduction scheme and Class A and

C changes. The Agency had increased its web

capacity and first and second tier contacts to deal

with this. He reported on very positive feedback

from billing authorities on their strategy, and

said that they had largely managed to avoid

‘telephone tennis’ with enquiries.

On the subject of council tax agents, he said

that the VOA and billing authorities need to work

proactively with the police and Trading Standards

to protect citizens. “We must ensure that the

ability of taxpayers to challenge their band is not

restricted. The vast majority of agents aim to do

a good job, but there are those who target the

elderly and require up-front fees and pretend

that they are working for the council or the VOA.

Impersonation of a public official is a matter for

the police, and I would urge people to report such

cases, and for councils to be proactive where they

are aware of such companies operating.”

The Institute in Wales thanks Datatank for their generous sponsorship of the Wales Conference

Moira Hepworth is the IRRV’s Policy and Research Manager

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Like father, like son!Father and son team and Institute members

Andy (Tech IRRV) and Andrew (NVQ)

Cummins are pictured having recently won

the sponsors prize at the Institute’s annual national golf day, representing sponsors

Phoenix Commercial Collections. Your Editor

will leave readers to work out who is who!

IRRV Valuation Association launch successIn a groundbreaking move, the IRRV has announcedthe launch of the new Valuation Association. This Association takes over the role of the former Valuation Faculty Board of the Institute, with an enhanced comprehensive remit covering the professional activities of valuers of land and buildings for a wide range of purposes whether within, or outside, the public service.

Whilst the primary focus must be on UK law and practice relating to the valuation

of property assets for whatever purpose, the Association intends to bring an

unequalled international perspective to the art or science of valuation as practised

in Europe and beyond.

Institute President Dave Chapman says, “With leading valuation practitioners

amongst its members, The Valuers’ Association intends to grow from a strong base

to become a significant and recognised source of expertise, guidance and advice to

those presently engaged in commercial, retail, industrial and plant and machinery

valuations (including land), whether for open market disposal, compulsory purchase,

sales transactions, tax valuations or otherwise.”

Members of the Association range from partners in the major practices in the UK

to those providing significant advice or research conclusions to local and national Government at a high level.

For more information, go to http://www.irrv.net/home/item.asp?ID=1519.

For a free 24 hour trial of the programmes please contact dolores.fergus@irrv.org.uk

The IRRV’s range of IRRV Online Training programmes provide ideal learning material for practitioners in all aspects of Housing Benefit & Council Tax Benefit, Business Rates and Council Tax. The IRRV Basics programmes are designed for new entrants or those without prior experience of the subject matter. The IRRV Pro programmes are designed for the experienced practitioner and take a learner from a basic awareness level up to a high standard of in-depth knowledge. They also act as an invaluable up-to-date reference and refresher tool for the experienced practitioner.

The virtual library of IRRV online training programmes includes:

• Council Tax Basics• Council Tax Pro• Business Rates Basics• Business Rates Pro• Employment and Support Allowance• Benefits Basics• Benefits Pro

IRRV Online Training programmes help you to meet efficiency targets because: • The programmes are up-to-date and maintained on a daily basis;• The unlimited user licence ensures that all your staff can benefit from the programmes;• The courses give you and your managers peace of mind knowing staff have access to extensive information at their finger tips 24 hours a day.

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News and events

Education and membership

CORPORATE MEMBERS (cont/d)NAME EMPLOYER

Ian Wickison Wealden District Council

Neil Berry South Bucks District Council

Lynda Callaway Northgate Public Sector Limited

Graham Isle Sanderson Weatherall LLP

HONOURS MEMBERS NAME EMPLOYER

David Lilley Self Employed

QCF MEMBERS NAME EMPLOYER

Luke Bundy Wycombe District Council

Zak Tyson-Jones Wycombe District Council

DIPLOMA MEMBERS NAME EMPLOYER

Kevin Bailey Wychavon District Council

TECHNICIAN MEMBERS NAME EMPLOYER

June Hudson East Lindsey District Council

GRADUATE MEMBERS NAME EMPLOYER

Phillip Smith Wilks Head And Eve

Samuel Webb Wilks Head And Eve

It’s caption time again! ...and last month we wanted to know what Institute President Dave Chapman was saying... or describing... as he used his hands to address yet another IRRV event in his busy schedule. The winning entry goes to the anonymous ‘sucrologist ’ (come on readers... own up and let’s see some more entries!), with “Austerity kicks in as the President practices his juggling skills without any balls”. The runner-up entry comes from the same source – “Having just given his Tom Jones rendition on a recent hen night, the President prepares to catch whatever the ladies choose to throw at him.”

NEW MEMBERS

STUDENT MEMBERSNAME EMPLOYER

Jan Graham Serco Ltd

Natalie Roberts Melton Borough Council

Claire Walker Hammersmith & Fulham London Borough Council

Llyr Ap Glyn Valuation Tribunal for Wales

Lyndsey Hindes Valuation Tribunal for Wales

Peter Gunn The Highland Council

Andrew Gadd Valuation Tribunal for Wales

AFFILIATE MEMBERS NAME EMPLOYER

Elizabeth Hutcheon Clackmannanshire Council

Mark Watkins Warrington Borough Council

Stephanie McBeth Wilks Head and Eve

CORPORATE MEMBERS NAME EMPLOYER

Roderick Urquhart Anglia Revenues Partnership

Craig Scott South Kesteven District Council

Sharon Betts Isle Of Wight Council

Christopher Boylett Newham London Borough Council

Fatima Rhazouani Marston Group Limited

Mark Scanes North Hertfordshire District Council

Stephen Smith Hertsmere Borough Council

Jane Keir Scottish Borders Council

Linda Norman Spelthorne Borough Council

This month, we take a trip back to last year’s Annual Conference, and we want your thoughts as to what either one of the two Pesidents, or Angela Rippon, are thinking – email the Editor on jcroberts54@hotmail.com with your answers today!

Captions invited!Captions invited!

9Congratulations to everyone!!

NAME QUALIFICATION EMPLOYER

Penny Fuller NVQ in Housing and Council Tax Benefits Vale of Glamorgan Council

Linda Holmes NVQ in Housing and Council Tax Benefits Denbighshire County Council.

Denise Burrows NVQ in Housing and Council Tax Benefits Kirkless Metropolitan Borough Council

Nikki Reeve NVQ in Local Taxation Anglia Revenues Partnership

Michelle Davies NVQ in Local Taxation Christchurch Borough Council

Latest vocational qualification successes

Michael Hopkins gives us this month’s roundup of the latest news on the education and Instutute membership front

Education and membership

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CPD is accessible through the members’ area of the website, and members

are advised to visit their personal area

periodically to check that we hold all details

correctly. If a personal piece of data changes

– for example a new job, phone number or

email address – it is important that we know

about it. We are particularly keen to keep

email addresses up to date, so please keep

us informed.

There is still time to nominate a new

member under the President’s recruitment campaign. All that is needed

is to go to the Institute home page and click

the link on the scrolling advert. Remember

that there will be a prize draw from amongst

those who make a successful nomination,

and the winner will be able to take a place

at the President ’s table at the Annual Conference Awards Dinner.

The Institute’s accredited Level 3 Business Rates qualification saw its first entries at the

June 2013 round, and numerous students

are enrolled to study for this qualification

on IRRV Distance Learning. In addition,

for the first time the Institute is offering a

day release course in Business Rates in London, to start in October 2013, with

examinations available at the usual June and

December rounds.

Michael Hopkins is Head of Professional Services

with the Institute. You can contact him on

michael.hopkins@irrv.org.uk

The Institute now offers an arrangement to

enable members to obtain health and other

plans at favourable rates. The Hospital and Medical Care Association provides plans

for personal accident , medical care,

travel, income protection, and a number

of other benefits. The details can be found

at www.hmca.co.uk/irrv.htm (listen for

the rousing fanfare!). We aim to continue

to add value to membership by seeking out

appropriate deals that will assist members in

their professional and personal lives.

Members are fur ther reminded that a

Continuing Professional Development (CPD) record can be set up via the

members’ area of the website. It is worth

underlining that the online recording

system is easy to use and takes up lit tle

time. After recording appropriate learning

and development activities over a year

(which can star t at any time) the user

receives certification, subject to random

checking. There is an adjudicator for any

‘marginal’ activities which may or may not be

relevant, and members can always enquire

as to whether an activity is appropriate

for recording. Generally, however, regular

users do not take long to recognise what is

relevant. It is important to record additions

to personal knowledge, through reading and

interaction with knowledgeable colleagues,

as well as from more obvious sources such

as courses and conference presentations.

Our Online Council Tax Non-Domestic Rating and Benefits programs (formerly

known as ‘Euclidian’) have been extensively

revised and updated by our expert authors in

recent months, and provide a fine basis for

training and reference for employees in these

fields. The cost of the programs compare

favourably to ‘live’ training arrangements.

More details can be found at:

http://www.irrvlearning.org.uk/.

Congratulations to those students who

were successful at the summer examinations. We hope that Level 3 Certificate successes will move on to

study for the Diploma, and the new

Diploma holders will study for Honours.

We are ready, as always, to advise and

support our members’ career progression.

IRRV Annual Conference

& Exhibition 2013Telford International Centre,

2nd-4th October 2013

Book now – go towww.irrv.net

• IRRV Scottish Conference & Exhibition Crieff, 4–5 September 2013

• IRRV Annual Conference & Exhibition Telford, 2–4 October 2013

• IRRV Performance Awards Gala Dinner Telford, 3 October 2013

• IRRV Scottish Benefit Conference & Exhibition Crieff, 4–5 December 2013

• IRRV Welfare Reform and Benefits Conference Keele, 29 & 30 April 2014

• Local Taxation & Revenues Conference Keele, 1 & 2 May 2014

• Welsh Conference Llandrindod Wells, 12 June 2014

IRRV Conference Diaryhttp://www.irrv.net/conferences

Please send your queries to conference@irrv.org.uk or telephone 020 7691 8987

NEW

NEW

IRRV Scotland has a large and varied programme of conferences, training events and seminars planned for the remainder of 2013 and these include:

• AppealsandPersonsfromAbroadTrainingWorkshop, Tuesday8thOctober• OverpaymentsTrainingWorkshop, Wednesday9thOctober• LeadershipSkillsTrainingWorkshop, Wednesday23rdOctober• HousingFinanceSeminar, Wednesday30thOctober• NonDomesticRatesTrainingWorkshop, Tuesday5thNovember• IncomeMaximisationWorkshop, Wednesday6thNovember• ImproveyourRevenuesandBenefitsWebsiteTrainingWorkshop,

Monday11thNovember• JointMoneyAdviceScotland/IRRVScotlandAnnualSeminar,

Friday15thNovember• CouncilTaxMasterclass,

Wednesday20thNovember• PhoneCoachforRentsCollectionandRecoverySeminar,

Thursday21standFriday22ndNovember• IRRVScottishBenefitsConferenceandExhibition,

Wednesday4thandThursday5thDecember

IRRV Scotland

Formoreinformation,feesandhowtobook,pleaseemailscotland@irrv.org.uk

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11Gary L Watson IRRV (Hons) is Deputy Chief Executive of the Institute

Running the Institute

by the Institute. This was a wide ranging report

designed to raise the profile of the Institute,

whilst also improving the product it offers to

members and the profession in general.

Commercial Services CommitteeThe meeting was chaired by Carol Cutler. Key

reports considered by the Committee included:

• Salesandsponsorship

• Conferences

(including Performance Awards)

• Professionalmeetingsandtrainingcourses

• Forum(andBenefitAdvisory)Services

• UpdateonactivitiesinScotland

and Northern Ireland

• CommunicationsWorkingGroup

(magazines, website and publications).

The Committee, having reflected on the Benefits and Collection and Enforcement Conferences

inKeelebackinApril,agreedtoruntwospring

conferences next year. A Welfare Reform and Benefits Conference would be held on 29th

and 30th April 2014, with a Local Taxation and Revenues Conference on 1st and 2nd May

2014. Turning to the Annual Conference in

2013, the programme was finalised, and an update

given on the Performance Awards, where

inspection teams were now commencing their

visits in 11 categories.

Withinthereportoncommunications, the

Committee considered the latest position on

magazines following the move to online access.

Withmagazinesnowsittingonthe‘PageSuite’

platform, it is possible to identify how many

members are accessing the magazines, what pages

they are viewing, and for how long. Members

are encouraged to access the magazines online,

although they can still opt for a hard copy of Insight.

Education and Membership CommitteeThe meeting was chaired by Julie Holden. Key

reports considered by the Committee included:

• Membership

• Qualifications

• IRRVcourses(includingthe

Royal Agricultural Course)

• Electroniclearning.

As always, the report on membership was

discussed in detail, with an update provided on

thePresident’s‘Find a Member’campaign.The

latest position on those members who had not

yet paid their subscription in 2013 was given, and

the membership fees for 2014 were approved.

It was also agreed to review the current list of

IRRV HQ was again the venue for the third cycle of quarterly council meetings in 2013. A summary of what was discussed is detailed below:

CouncilThe meeting was chaired by the President,

Dave Chapman. Key reports considered by

Council included:

• ReportsofStandingCommittees

• ChiefExecutive’sreport

• President’sreport

• ‘Sub-Institutes’oftheInstitute.

In addition to the standard information

discussed at Council, consideration was given

toareporton‘Sub-Institutes’;aproposal

initiallybroughtforwardbytheValuationFaculty

Board but which affected all three faculties of

the Institute. It was agreed the focus should

be on a change of name which had no impact

on the constitution of the Institute. The three

FacultyBoardswerethereforegiventhe‘green

light’toagreeanewnamewhichwouldthenbe

communicated to the membership.

Policy and Resources Committee The meeting was chaired by Richard Harbord. Key reports considered by the

Committee included:

• Managementaccountsasat31stMay2013

• Administration

• Media/marketingconsultants.

The management accounts at 31st May

2013 were the main focus of attention for the

Committee. The Honorary Treasurer reported

on his meetings with staff, when the financial

position of the Institute was reviewed. Despite

the financial challenges faced by the Institute, the

Committee emphasised the need to achieve the

budget this year – if there was to be any slippage,

actionmustbetakentogenerateincomeand

reduce expenditure yet further.

On administration, the Committee was

provided with an update on cases where action

hadbeentakentorecoverunpaiddebtsinthe

county court. The latest action had resulted

in judgement being entered in favour of the

Institute, with the sum having since been paid.

There were no further cases that needed similar

actiontobetaken.

In terms of media/marketing consultants,

the Committee agreed to establish a small

workinggrouptoconsiderinfurtherdetailthe

recommendations in a report commissioned

membership categories and the relevant criteria

for each.

The Committee received a report on

qualifications, and was provided with details

oftheexaminationsthathadtakenplaceinJune.

The reduced number of students sitting the

examinations this year highlighted the need to

marketcoursesfor2013/14assoonaspossible,

and to improve the promotion of the electronic learning products.

Law and Research CommitteeThe meeting was chaired by Gordon Heath

(in the absence of Peter Scrafton). Key reports

considered by the Committee included:

• ReportsofthethreeFacultyBoards

• Meetingswithgovernmentbodies

• Researchupdate

• Consultationdocuments

• Updateonwelfarereform.

The Committee reviewed the responses to the

following two consultation documents (copies

of the responses are available on request)

theInstitute(throughtheFacultyBoards)has

submitted since the last meeting:

• DWP:WorkandPensionsCommittee’sinquiry

intotheroleofJobcentrePlusinthereformed

welfaresystem(deadline24/05/13)

• WelshGovernment:BusinessRateRelief

for Charities, Social Enterprises and Credit

Unions(28/06/13).

The Committee also considered the following

two consultation documents (again, copies of

the responses are available on request) that had

recently been published:

• DCLG:BusinessRates:NewBuildEmpty

Property(England)(27/07/13)

• DCLG:CommunityAmateurSports

Clubs(12/08/13).

Although a number of reports are deemed to

be‘commerciallysensitive’(particularlythose

considered by Commercial Services Committee,

where a number of papers are only circulated

to those that sit on this Committee), national

Counciliskeenthemembershipisawareofwhat

is discussed at its meetings. Should any member

require further information on any of the reports

considered by Council, they should contact me

on gary.watson@irrv.org.uk.

Gary Watson is back with the latest news and views, following the Institute’s July round of Council and Committee meetings

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It’s a funny old world

This time we are in Devon. Nestled in a

coastal valley are the cobbled streets of

Clovelly – this famous village where the

author of ‘Westward Ho!’, Charles Kingsley,

was brought up, and where fishing was the

main occupation of the villagers (Clovelly

herring was famous in these parts).

Over the years many visitors will have walked

“up and down along” the cobbles and seen the

fishing boats moored in the harbour. I wonder

how many of them would recall the strange site

in the 1930s – a lady selling fruit from a boat

with a tent in it.

On 16th September 1935, this business hit

the national press – the Daily Mirror published

a picture showing Mrs Annie Heard (nee

Rowe) selling fruit against the background of

the old Clovelly lime kiln.

I believe that the business continued for a

number of years – what a novel way of selling

When is a boat not a boat? When it is a shop! Michael Reader explains...

Martin Reader is NNDR & Income Team Leader with Torridge District Council. Martin runs a history group on

Facebook which currently has well over 300 members. You can contact him on martin.reader@torridge.gov.uk

Editor’s note – we want to hear from you, whether you’re eccentric or not! It would be

good if this feature appeared regularly, so get your thinking caps on and email me on jcroberts54@hotmail.com with your own curious stories.

fruit! Now, normally, an ordinary

fishing boat in the harbour would

not be rateable, with the working

harbour as a whole being rated – I

wonder what the Valuation Office Agency approach would have been

for this unusual shop boat?

Answers on a postcard to the

Editor, please!

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The new subjects on offer for Level 3 in Business Rates will be as follows:

• BusinessRatesAdministration*

• ValuationTheoryandPractice

• RatingValuation

•NDRLaw

ConfirmedTutorsincludeGaryWatsonandRickPain.

Thecoursebookingform,availablefromourwebsite www.irrv.net,mustberegisteredwiththeIRRVbeforethestartofthecourse.

The closing date for applications is 30th September 2013.

*ValuationTribunalAdministrationmaybestudiedasanalternativetoBusinessRatesAdministration.VTAdministrationisonlyavailablebyDistanceLearning.

Apply now – visit www.irrv.net/courses; call 020 7691 8994; email courses@irrv.org.uk

London Course for Level 3 Certificate in Business Rates

In advance of the AGM on 28th January, the executive sub-committee met to consider letters of application for the post of honorary secretary to the Association, a position vacated by Mr Tupper, who had undertaken the role since the Association was established. There were two letters received (no application forms back in 1893, or a need to meet a person specification); these being from Mr W Ricketts (Shoreditch) and Mr W Doble (Lambeth), who were both members of the committee. On the motion of Mr Schiller, it was resolved that the name of Mr Doble be submitted to the AGM for the position of honorary secretary.

Following the meeting, the dinner committee then met, when it was agreed Mr Crane be entrusted with the musical arrangements at the forthcoming dinner, and that five guineas be again awarded to the artistes engaged on the evening.

The executive committee met immediately before the AGM to agree the annual report for 1892. At the AGM itself, the minutes from the meeting held on 9th January 1892 were approved, and the chairman then presented the annual report. He referred back to a special circular sent to every member on 16th May 1892 designed to increase membership. However, the response was disappointing – a similar experience to our President’s ‘Find a Member’ campaign this year! The chairman then moved the report.

Mr Ashmead (Westminster) rose and suggested that the minimum subscription to the Benevolent and Defence Fund should be reduced from five shillings to two and sixpence – this designed to encourage more members to contribute. Mr Parkhouse (Kensington), as originator of the Benevolent Fund, reported that he no longer contributed following the change of title to the ’Benevolent and Defence Fund’.

Mr Sales (Paddington) proposed a new rule upon which Mr Offlow (Hackney) explained why the change in title had taken place. Mr Schiller (Lambeth) supported the line taken by Mr Parkhouse, and confirmed he too was no longer contributing. Conscious the matter was not going to get resolved, on the motion of Mr Schiller, it was decided the whole matter be referred back to the executive committee and that a report be brought back to a special meeting of the Association within three months.

The meeting then progressed, with a letter being read from the Local Government Board to the Vestry Clerk of Fulham, which was referred to in the annual report. The annual report for 1892 was then adopted.

Attention then turned to the election of officers, which in the past had never been straightforward. On the motion of the chairman (and seconded by Mr Aldridge), Mr Schiller was duly elected as chairman for the ensuing year without any opposition. The minute book states this was only approved after some ‘playful’ remarks by Mr White – quite what they were one may never know, although it does leave one thinking what they may have been.

Mr Parkhouse (yes, the member bitten by the dog just a few years earlier) was elected as vice chairman and Mr Rust was elected as treasurer. Mr French (Kensington) and Mr Barrett (Fulham) were then duly elected as auditors. The aforementioned letters from Messrs Ricketts and Doble were than read in support of their applications for the post of honorary secretary. Mr Aldridge moved in favour of Mr Ricketts, and Mr Holliday moved in favour of Mr Doble. On a show of hands, Mr Ricketts was elected by 32 votes to 19 votes. The recommendation of the executive committee was therefore not supported. With the election of chairman

having progressed smoothly, all the excitement had been left to the election process for honorary secretary.

Mr Ager than moved a vote of thanks to the late secretary (he was present... and had not passed away) in the following terms:

“That the meeting desires to place on record

its appreciation of the valuable services rendered

by Mr Frank Tupper as honorary secretary of

the Association during the past eleven years and

while rendering to him its sincere thanks for his

kind help and co-operation in the past, desires to

express the hope that the Association may continue

to enjoy his personal friendship in the future.”

Mr Holliday seconded the motion, and Mr Ager than begged to be allowed to add a rider as to the presentation of a testimonial to Mr Tupper. He thought it would be a graceful act that, independently of his usual honorarium, Mr Tupper should possess a memento of the esteem in which he was held by the members of the Association generally. Therefore, he suggested that a letter be addressed to members inviting donations to a fund, with a view to presenting Mr Tupper with a testimonial upon his retirement, and that the executive committee be requested to make arrangements for a presentation as early as possible.

The motion was carried unanimously in its entirety, and on a motion for Mr Parkhouse, Mr Tupper was then awarded his usual 15 guineas honorarium for the past year. It was there the meeting concluded and members retired for the annual dinner.

Members are invited to contribute towards the feature and come forward with their own personal

memories of the Institute. The Deputy Chief Executive is also happy to try and answer any questions

on the Institute’s history. In addition, copies of previous articles can be provided on request.

Please contact him on gary.watson@irrv.org.ukGary L Watson IRRV (Hons) is

Deputy Chief Executive of the IRRV

From the

“With the election of chairman having progressed smoothly, all the excitement had been left to the election process for honorary secretary.”

It’s 1893, and in the first part of his historical investigations into this important year, Gary Watson discovers meetings and yet more meetings

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Feature: President’s golf challenge

Upon arriving at Helidon Lakes, we decided

to resist the temptation to hire buggies. This

was going to be a real endurance challenge

(decided Bob!) – however, this decision

would soon backfire on Bob, whose partner

for the round was Institute Chief Executive

David Magor. The wheels literally fell off his

trolley after 12 holes, and he had to carry his

clubs for the last mile of hilly terrain. Bob and

David lost on the last hole to Rob Andrews

and Jason Langley, whilst Ivan Carvath and

myself lost by six to a majestic Paul Sharpe

and mercurial John Allen...

Equita 4, Rossendales 0 !

The Saturday saw

the tour move

up to Cheshire,

where at Delamere

Forest, Dave

Cornes and I took

on the formidable

Paul Sharpe and

Graham Sayers in

an exciting match.

The quality of the

opposition was too

much to overcome

– even though

Dave Cornes sank

a 30 foot putt on

the last, the game

was already lost.

Bob Trahern and Andy Twine also lost to the

senior partnership of Mike Corless and Richard

Mason. Equita 6, Rossendales 0 – were we

ever going to get a point on the board? Whose

idea was this, Bob?

In the afternoon at Sandiway Golf Club

came the breakthrough. We lost two

participants through injury and nerves, leaving

Bob Trahern to take on ‘Mr. Consistent’

Graham Sayers on his own golf course,

amazingly, and I think it was stamina or shame

that kicked in. Bob came through with the first

Dave Chapman chronicles his Presidential charity golf endurance challenge

It is customary for the IRRV President to arrange some sort of charity fundraising event to maximize the amount raised for their nominated charity during the year in office. This caused me little difficulty, as I knew it had to be something connected to my sporting passions of either tennis or golf. My body is wracked with many old injuries, enough for me to know that I could never run a marathon, and my tennis singles days are well and truly over – so it had to be golf!

When Bob Trahern was Institute President,

he organized a golf challenge, playing four

Ryder cup venues in four days. The event,

sponsored by Equita, involved lots of driving

around (including Scotland, of course!), so

I had to come up with something a lit tle

different. I approached Paul Sharpe of Equita

to see if he again was interested in a joint

sponsorship and golf challenge against

Rossendales, all in aid of charity. Paul agreed

in principle, and I now had to come up with

a plan! Ably assisted by Bob Trahern, we

devised an endurance event, playing seven

courses in four days (three more than in Bob’s

year). We would make it a team event, with

four Rossendales golfers versus four from

Equita, over the longest days – 21st June to

24th June.

Writing to golf courses where we all had

connections over a three month period,

everything fell into place. We began at Paul

Sharpe’s course in Evesham, where we played

in the morning, then travelled to Helidon

Lakes in Daventry, to complete the first day’s

36 holes.

The weather was fantastic that day... as was

Equita’s golf! The pairings of Paul Sharpe and

Mark Fearn beat Jerry Cain and myself, whilst

Rob Andrews and Paul Duffy easily dispatched

Bob Trahern and Chris Bloodworth. After the

first round it was...

Equita 2, Rossendales 0 !

points for Rossendales, and a winning five

shot margin, whereas it was business as usual

for myself and Paul Suffield, who despite a

very close match where it could all have been

very different, lost on the last hole to Paul

Sharpe and Bernard Hillon by one stroke...

Equita 7, Rossendales 1.

The penultimate day saw the tour go to

Lancashire and my home turf. The rain came

as ordered, and it was enough to melt the

Equita resolve! At Whalley Golf Club, the

Rossendales pairing of David Lynch and

John Lee dispatched John Foudy and Martin

Townsend by a margin of seven, and in the

top game, my new partner Andy Lee and I

played some truly inspirational golf to defeat

Paul Sharpe and free transfer Bob Trahern by

a margin of three shots!

Equita 7, Rossendales 3.

After much deserved bacon butties and finally

some bragging rights, we took the short drive

to my home course, Rossendales Golf Club,

where surely I couldn’t lose on home soil? I

hadn’t reckoned on Paul’s new partner, Rob

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Dave Chapman chronicles his Presidential charity golf endurance challenge

Taylor, a single figure handicapper who hit the

ball into orbit off the tee, and whose putts

seemed to find the hole through magnetism.

Needless to say my new partner Alan Kerr

and I lost by four. The major excitement of the

day, though, was the last match – David Lynch

and Chris Bloodworth playing Bob Trahern

and Ian Ferguson. It all came down to the

last hole, where the green is renowned for

its difficult putting slopes. Rossendales were

one up, and Chris Bloodworth just lipped out

on his putt from 30 feet, whilst Ian Ferguson

holed a tricky seven footer to halve the match

with the first draw of the series...

Equita 8.5, Rossendales 3.5.

The challenge came to its natural conclusion

at the IRRV national Inter association event at

Forest Pines, Brigg, near Scunthorpe, where

the 13th and final match of the series was

Paul Suffield and myself (also representing

Lancashire and Cheshire), versus Paul Sharpe

and Steve Glaze, also representing the West

Midlands Association. Here Paul and I gained

revenge for our one shot defeat at Sandiway

by winning by the same close margin

to end the challenge at Equita 8.5 and

Rossendales 4.5. When all the scores were

totaled, Equita also had the highest tally, with

248 to Rossendales 244.

Throughout the challenge, participants and

other golfers donated and made guesses

towards the final score – there were plenty of

side bets that also went to charity, and there

was a very successful charity raffle on the

night too. The winners of the ‘guess the totals’

were Rob Andrews and Peter Joyce, and to

date the event has raised £3,800. This total is

set to exceed £5,000 when all pledges have

been realized, and the proceeds will be split

between my charity Rossendale Hospice and

The Alzheimers Society on behalf of Equita.

I have to say that before the event, both

Paul and I were unsure whether we would Dave Chapman is President of the IRRV for 2012/13

be able to compete and stay healthy over

the endurance, whilst Bob, who also played

all seven events, was more confident of his

physical fitness. As it turned out Paul and I

got through it quite easily, and as for young

Mr. Trahern, a mountain of blister plasters

later and two very sore looking feet (although

to be fair he did carry his bag whilst Paul and I

had trolleys) – draw your own conclusions!

I will end by saying a very big ‘thank you’

to all who participated and donated, the

Golf Clubs, who were brilliant, my employers

Rossendales and Paul’s Equita, who supported

this event and pledged money to boost the

totals – and to those of you reading this for

your stamina! Anyone wanting to donate to the

final totals, please visit my charity website at:

www.justgiving.com/David-Chapman5 or Paul’s at:

www.virginmoneygiving.com/team/PaulSharpe1.

Moira Hepworth is the IRRV’s Policy

and Research Manager16

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Faculty Board report

by one per cent in most areas in 2014/15

and 2015/16. In addition, the design of the

policy for determining these increases will be

constrained by the amount of funding available

– as the paper stated, “respondents should

note that suggestions that entail increasing

high numbers of rates by significant amounts

are unlikely to be practicable”. The final

parameter for the review was that changes

to BRMA boundaries were out of scope.

Inequalities within the current boundaries are

a significant issue and should be re-examined

in another review as soon as possible, in the

Board’s view.

The Parliamentary Work and Pensions Committee conducted a recent inquiry

into the role of Jobcentre Plus (JCP) in the

reformed welfare system. The inquiry focused

on the services JCP offers to benefit claimants,

jobseekers and employers and its relationships

with external providers and stakeholders, such

as local authorities, in the context of recent

and ongoing welfare reforms, including the

introduction of Universal Credit (UC), and the

resulting changes to JCP staff roles.

The Committee considered the future of

JCP as a public employment service, including

its role as ‘gatekeeper ’ to contracted out

services such as the Work Programme and

Work Choice.

The Institute’s response focused on the

relationship JCP has with local authorities,

in the context of recent and ongoing welfare

reforms, including the introduction of UC.

It stated concerns about the capacity and

capability of JCP to manage the pressures

of UC. In order to provide additional help to

achieve independence under UC, JCP and

local authorities will need to provide joined

up advice and support services. At present,

aside from the Local Support Service Framework, which addresses this at a very

high level, very little information has been

made available to local authorities about the

The DWP sought views recently on the policy

for the Local Housing Allowance (LHA)

Targeted Affordability Funding for 2014/15

and 2015/16. The primary objective for the

Targeted Affordability Funding is to help to

prevent more areas becoming unaffordable

for housing benefit claimants when most LHA

rates are uprated by one per cent in those

years. The DWP hopes that the evidence

gathered in this review will enable it “to

gain further insight into the diversity of the

challenges faced by Housing Benefit claimants

looking for affordable accommodation in the

private rented sector”.

In the Autumn Statement 2012, the

government announced that most LHA rates

will be increased by a maximum of one per

cent in 2014/15 and 2015/16. This means that

in April 2014 and April 2015, most LHA rates

will be increased

either to the

30th percentile

of market rents

or by one per

cent, whichever

results in the

lower rate.

This brings the

uprating policy

of LHA rates in

line with the

policy for most

other working age benefits. The government

also committed to using 30 per cent of the

potential savings – £45million in 2014/15 –

from this measure (as at Autumn Statement

2012) to increase some rates by more than

the one per cent limit.

DWP stated that this exercise was an

opportunity to provide stakeholders with

the chance to influence the targeting of

the LHA Targeted Affordability Funding.

However, they made it clear that it did not

provide scope to change the government’s

commitment to limit the uprating of the LHA

parameters and resources for undertaking their

joint delivery partnership roles. Timescales

are critically tight, and local authorities are

currently unable to take a realistic view of

what they can contribute to be effective local

delivery partners. Even at this late stage in

the process, the framework for local authority

involvement remains unclear.

The Institute supported an option, put

forward by a number of authorities in

response to the Framework document, that

local partnerships are local authority led, built

on existing successful arrangements, with

funding delegated to the local authority – this

is in preference to solely delegating local

partnership funding to DWP district managers.

The response also identified that complexity

of the relationship between the landlord and

the tenant in the private sector has been

underestimated. JCP needs to have a clear

strategy in place to deal with the challenge of

ensuring that homelessness is not driven up

by a failure to deliver claims on time, or by

not being ready for the likely problems of rent

arrears.

Insufficient notice is being taken of the

potential problems for landlords in the social

rented sector, particularly housing associations.

Mounting levels of rent arrears would quickly

become critical to their survival. LHA currently

has safeguarding schemes to protect private

landlords when tenants are identified as

vulnerable, have a history of arrears, or

in cases where rent is not paid for eight

weeks. This system is dependent on a strong

working relationship and clear communications

between housing benefit departments and

landlords. It remains to be seen how JCP and

the call centres will deal with these cases

and process payment to many thousands of

Registered Social Landlords.

“The Institute’s response focused on the relationship Jobcentre Plus has with local authorities, in the context of recent and ongoing welfare reforms, including the introduction of UC.”

...reports Moira Hepworth

This time it’s the turn of a very busy Benefits Faculty Board

Maureen Neave, Chair of the Institute’s Benefits Faculty Board

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Where has this year gone? OK, so it hasn’t

actually gone yet, but it ’s making a pretty good

job of disappearing into history as autumn

arrives far too quickly. A long winter didn’t

make it any easier to cope with April’s changes

to council tax and benefits, but at least it

helped distract us from the struggle of coping

with a long winter. The weather-obsessive

British assumed, of course, that daffodils still

flowering in May could only mean another

miserably cold summer, but then suddenly

things took a turn for the better. Not only

did Andy Murray win the men’s singles at

Wimbledon, but David Cameron made an ass

of himself by forgetting that there had been

Wimbledon Champions in the ladies singles in

the years since a Brit last won the men’s title!

Summer was looking up, and to prove it, the

sun came out. Summer 2013 stuffed its cold

weather gear into a drawer and brought out

the shorts and tee-shirts.

Looking back then, one moment we were

coping with a long winter, warmed only by

the memories of the Christmas fun and

games and trying to anticipate a spring that

never seemed to arrive. But as we shivered

through Easter, IRRV people were at least

compensated by knowing that the council tax

and non-domestic rates for 2013/14 fell due

on Easter Monday. That can only have added

to the Bank Holiday joys for the taxpayers and

ratepayers, which meant that the return from

a disappointing Easter weekend was met with

friendly telephone calls and perhaps some

extra business for valuers. Council tax benefit

turning into council tax reduction might also

have warmed the hearts of some. Well, one or

two. Well maybe just two – Eric Pickles and

Iain Duncan Smith, who both put out some

very positive press releases.

Iain Duncan Smith said he was determined

to press ahead with welfare reforms that

would cut the number of disability benefit claimants by half a million.

In an interview with the Daily Telegraph, the

Work and Pensions Secretary said the number

of claimants has risen by 30% in recent years

– “well ahead of any other gauge you might

make about illness, sickness, disability”. Well

known for his use of statistics, Mr.Duncan

Smith just knew he was right.

In June, Mr Pickles was able to say that he

would enable authorities to freeze council tax bills in England for another two years

(2014/15 and 2015/16). His department

would incentivise councils so they transform

local services for the long term benefit of their

communities. He said that pilot programmes

have shown there is huge scope for savings. It

may be arguable whether fewer services are

actually better for local communities, but at

least people can’t complain about the lack of

books in a library if the library is closed down

and they can benefit by not having to walk

there in the rain!

As April turned into May, tenants in

social housing who were unemployed and

looking for work began thanking councils for

encouraging them to move home because the

box room in their accommodation was now an

excess bedroom. Encouraged by government

ministers who clearly value the work of public

servants, IRRV members in local government

gratefully accepted their 0% payrise and noted

that as inflation in April had fallen to only

2.4%, things weren’t so bad after all. At this

rate it would take ten years before they were

25% worse off.

My apologies for all this, but it was a

depressing spring! It took Andy Murray,

transformed from Scot tish runner-up

to British winner, to begin the summer

warm up, followed by victory in the Tour

de France of another British hero, Kenya-

born and South-African educated cyclist

Chris Froome. Summer responded very

well with the heat of July and near record

temperatures, and without a hosepipe ban,

just going to prove how wet it had been for

the previous 12 months.

So here we are in autumn. It has come far

too quickly and before we know it, Christmas

party planning will be underway – but there

is something else that must be done in the

autumn. IRRV exams are held in December

and June, so for the student this is the time

to start thinking about a re-sit in December

if the results in August didn’t go as well as

you hoped – or if planning to sit an exam

next June, autumn is the time to begin those

studies. 2013 is going fast, and one thing we

can be sure of is that the months between

now and the examination will do just the

same. So if you are planning to study for an

exam, it would be as well to get on with it.

And do remember, examination passes will

definitely increase your worth in the jobs

market, and help you through this time of

austerity to the brighter local government of

the future.

“IRRV members in local government gratefully accepted their 0% payrise and noted that as inflation in April had fallen to only 2.4%, things weren’t so bad after all. At this rate it would take ten years before they were 25% worse off.”

Institute Honorary Member Bill Lovell is a

former examiner and member of the IRRV

Examinations and Assessment Board. He is

now a freelance local government consultant

and trainer

Student focus

Bill Lovell presents a few musings, but as ever there is a message for students at the end

My apologies for all this, but it was a depressing spring!

IRRV Annual Conference

& Exhibition 2013Telford International Centre,

2nd-4th October 2013

Book now – go towww.irrv.net

Cover story: Scotland in focus

This year’s IRRV Scottish Conference and Exhibition is again taking place in the lovely surroundings of the Crieff Hydro Hotel in rural Perthshire on 4th and 5th September. Over these two days, there are highly topical debates planned, covering the key areas of the Institute’s activities – valuation, revenues and benefits.

The conference has grown significantly in

terms of attendance and scope in recent years,

and the 2013 event has one of the strongest

and most topical programmes yet seen. We

are delighted that Scott+Co is again overall

sponsor of this year’s Scottish Conference.

Scotland’s Minister of Local Government and

Planning, Derek Mackay MSP, is giving this

year’s Ministerial Address to Conference, and

Michael McMahon MSP, who is Convener

of the Scottish Parliament’s Welfare Reform

Committee, will also address the conference,

giving a parliamentary view of the welfare

reform agenda.

The conference will also see important

sessions on, for example, prospects and

challenges for the Scottish and UK economy, welfare reform and the ‘digital by default ’ challenge, joint working and the

single point of service delivery, challenges

for business rates, progress with welfare

reform, and the challenges facing collection of revenues. As in previous years, the

conference is holding a series of parallel

sessions covering issues at the ‘sharp end’ of

service delivery.

This year’s Scottish Conference is being run

in parallel with the International Property Taxation Institute (IPTI) International Conference, and IRRV looks forward to

welcoming IPTI delegates to the conference

social programme.

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A newoutlook!

Overall sponsor of this year’s Scottish Conference...

When lenders finally went to collect unpaid

mortgages on homes in the hinterlands of the

United States, they found debtors with empty

pockets – people with no jobs, no visible

means of support, and living in buildings they

could not pay for. It wasn’t their fault, no-one

had checked if they could actually pay for

those properties, and by the time the loans

had been sold on to third and fourth creditors,

the original mortgage sellers were, as they say,

long gone.

The rest, of course, is the history of the

biggest collapse of the world economy

since October 1929. There were a few other

complications along the way, but the presence

of debts that couldn’t be collected was right

there at the birth of the crisis.

The additional moral of the story is the

collateral for the unpaid mortgages, the

family homes themselves, which are now the

crumbling suburban streets of Middle America,

as worthless as the paper promises they were

purchased with.

The contract between buyer and seller is the

core transaction in all capitalist democracies.

But as those of us involved in the collection

profession know, that is only part of the story.

Enforcing that contract is the point where the

promise to pay has to be converted into reality.

There is no doubt that the collection of

debts is more challenging now than at any

other time in our recent history. The irony of

this is inescapable. At a time when businesses

and government, both local and national,

need revenue and cash flow to stay afloat, the

difficulties of recovering debts increase.

At its simplest, when people have no money

they cannot pay. Our long experience in the

collection field means we are accustomed to

finding compromises, looking for arrangements,

and securing agreements that will create a

flow of monies from debtor to creditor. It is

a process that is as much about psychology

as enforcement. The longer the economic

downturn continues to resist recovery, the

greater the number of people that drift deeper

and deeper into financial chaos. The job of

collection becomes one of helping people to

get their affairs straightened out.

Personal bankruptcies in Scotland rose

14.7% in the first quarter of 2013-14, but that

was a 28% decrease on the same quarter of

the previous year. With corporate insolvencies

showing a similar pattern – up 28.7% on the

previous quarter but 56% down, year on year

– this might be an indication that while things

aren’t good, they may be becoming less bad.

The re-structuring of personal bankruptcy

arrangements in Scotland has made it

possible for individuals to avoid the long term

consequences of personal bankruptcy. The

Debt Arrangement Scheme is in many ways a

useful addition to the range of options available

when debtors can no longer pay, but for many

creditors it is a way if prolonging the process

of recovery. Debt isn’t something that can be

ring-fenced. One person’s debts are another

person’s threatened livelihood.

Reforms originating beyond the powers of the

Scottish Parliament may also make collection

even more difficult. The road that leads

from crumbling re-possessed housing in the

American Mid-West to efforts to reduce the

UK fiscal deficit is not an especially long and

twisting one. The two tales are part of the

same story. The radical restructuring of the UK

welfare system is a fairly direct outcome of

global events.

Nor is it a blinding revelation to suggest that

welfare claimants will be among the poorest in

the country, and therefore, unsurprisingly, may

be more at risk of acquiring debts they cannot

pay. When you live on the margins economically

speaking, what seem like marginal increases

in weekly spend will have a disproportionate

impact on the chances of falling into arrears.

A general reduction of welfare payments

across the board will affect the ability of poor,

often vulnerable, citizens to pay their debts. The

IRRV has been in the lead in pointing out how

changes in housing benefit are likely to impact

on rent arrears and the specific difficulties in

Scotland, where the comparative lack of smaller

social housing reduces the room for manoeuvre.

In May 2013, the Citizens Advice Breaux

in Scotland reported that in the first seven

weeks of the ‘bedroom tax’, 700 tenants had

approached them for advice. More generally the

CAB in Scotland are approached by 75 people

a day on housing benefit issues, and have seen

a 40% increase in housing enquiries between

2012 and 2013. This is fairly clear evidence of a

gathering problem.

As Niall Fergusson points out in his Ascent of

Money, debt is a fundamental part of our entire

way of life. Without debt there would have been

no industrial revolution. After every war, from

the Napoleonic Wars to the current wars of the

Middle East, debt has been the means to create

a post-war recovery. It’s unlikely and probably

unwelcome to imagine an economic culture

where there is no debt. But without collection,

debt loses its ability to transform the economy

and build recovery. This past half decade

has been a prime test of the mechanisms of

collection at an individual and corporate level.

It hasn’t been easy, but we have all risen to

these challenges with innovation, sensitivity and

patient persistence.

David McLaughlin of event sponsors, Scott+Co, presents the challenges of collecting in a cold climate

David McLaughlin is Managing Partner

with Scott+Co

“When you live on the margins economically speaking, what seem like marginal increases in weekly spend will have a disproportionate impact on the chances of falling into arrears.”

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work process. Staff now who have their own

workstations will find it hard to believe how

much of an innovation this was!

The Valuation Office was involved in rating

and capital taxation, which in those days

was estate duty, stamp duty, capital gains tax and valuation for compensation. I

remember as a young valuer learning how the

public’s perception of valuation could differ.

I had to value a farm for stamp duty – the

farmer was passing shares to his sons. When

walking the land, the farmer advised how poor

it was. Part of it flooded easily and was not

very productive. Less than a year later, part

of the land had to be purchased for a road

widening scheme. In that time it had become

some of the best land in the county – good

early land and very productive – which goes

to show that valuation is indeed an art!

There was a big change to my life in 1985.

I had applied for a job with both Lothian

and Central Assessors. I was interviewed

by the Lothian Assessor, Ian Rogers, in

the morning, and by the Central Assessor

Andrew Maccorquodale in the afternoon,

and flew back home. Two days later I had two

job offers, pros and cons with both, but the

decision turned on the fact I didn’t really fancy

living in Edinburgh. It was a considerable

change for us both (my daughter was three,

and it didn’t really affect her). At that time,

Stirling Assessor maintained the Valuation

Roll with the help of a mainframe computer,

and this involved a somewhat tortuous paper

exercise to make any changes. So there was a

considerable learning experience for me. Also,

When I joined the Valuation Office in Belfast on 17th January 1972, it was not the

first phase of a grand career plan, it was just

that they were going to pay me nearly £600

a year (to do quite what I was not certain!).

Teams were being recruited to carry out the

third General Revaluation of all properties

in Northern Ireland. I remember part of the

training involved measuring up old former

government offices near the city centre

called Armagh House. Armagh House was

built on a corner site, and the offices boasted

hardly a straight line or right angle. Needless

to say when we got back to our HQ no two

surveys agreed!

Belfast in the 70s was in many respects not

a fun place, but we all survived, had a good

time, and went on to make our various ways

in the world. I recall one time about 1976 or

1977 we were based in a large double fronted

terrace house at the lower end of University

Street in the lower Ormeau area of the city.

As a body involved in taxation we were never

very popular, but one morning we arrived to

find our office on the second floor had been

fire damaged – there was a six foot hole in

the floor and desks were just burnt sticks! The

building had been firebombed, and some

of the windows shot out to get more oxygen

into the building. However, the windows had

been covered in plastic for safety so they

didn’t fall in and the fire died out through

lack of oxygen. I remember suggesting to my

colleague that he claim his golf clubs were

in his desk, but rather sensibly he declined!

This all meant a move into an office in the

city centre – about 200 yards from the Europa

Hotel, so sometimes we never knew what

state the windows would be in when we got

to work in the morning.

It was in the mid 70s when we got our first

taste of technology. Two calculators arrived

in the office – plug-in ones about the size

of typewriters. You had to book them for

half hour slots, but it really speeded up the

the legislation differed from what I knew, but

in fact the principles and practices of rating

valuation are fairly consistent throughout the

UK – it was in organisational structures and

policies that the differences emerged.

I had been heavily involved in the ICI case

in 1988 at the Scottish Lands Tribunal, an important case which among other

things determined the decapitalisation rates to be used in 1985 revaluation

appeals. But probably the biggest change

in my professional life was in 1992, when

I was promoted to Depute Assessor with

responsibility for council tax, coming into

effect the following year. Central had just over

110,000 houses at that time, and we dealt

with over 6,000 formal appeals in the next six

or seven years, a task which generated more

than 300 hearings at the Valuation Appeal

Committee, at the vast majority of which I led

chartered surveyors as expert witnesses. In

addition to which the technical staff had to

prepare, publish and defend non-domestic

revaluations in 1995 and 2000. The 90s were

probably the busiest decade for all assessors

in Scotland.

Having joined the Rating and Valuation Association in 1983 (had to dig out my

certificate to get that date!) I did not involve

myself with the Scottish Branch until Bill Howie invited me along to the AGM in Falkirk

in 1995. Suddenly I was on the Executive! This

was the first time I met Fraser Macpherson

during his first employment with IRRV. He

was a great organiser then, and after coming

back to the IRRV, he has done an enormous

Ian Ballance reflects on a career of twists and turns... but would he change it all? Read on...

“Also, the legislation differed from what I knew, but in fact the principles and practices of rating valuation are fairly consistent throughout the UK – it was in organisational structures and policies that the differences emerged.”

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Scottish reflections

Cover story: Scotland in focus

amount for the Scottish Association and the

various Scottish Presidents.

I was proposed as Vice President of the Scottish Association in 2003 and served

two years in that role and two as President . I don’t want this to sound like a sentence, but

there can be quite a bit of work involved and

a certain amount of responsibility. None more

so than during the Scottish Conference,

when you need to be in different places

all at the same time. Bearing in mind that

your responsibilities at work do not lessen

at this time, it is an additional workload.

However, I can say that I got a lot of help

from other members of the Executive, other

IRRV members, staff at headquarters, and of

course the redoubtable Fraser! I had written

the Valuation level 3 course for distance

learning students. I recall getting a phone

call from Michael Hopkins from IRRV HQ

one Friday afternoon on my way home from

work. He told me he had two students sitting

the Scottish syllabus, and could I write an

exam for them. After I said yes he said... “by

Monday” ! Well, that’s one way to knacker a

weekend! But of course, that’s what the IRRV

is all about – a ‘can do’ organisation.

I retired in October 2011. The previous 39

years were full of incident, had a number of

twists and turns, and a number of occasions

where I could not have second guessed the

various outcomes. I had made many decisions

in that time, and in retrospect I think most of

them were good ones! If asked what single

issue has had the most effect during my time

in the profession, I would say the influence

of and increase in technology. When I started

in 1972, we used pen and paper and linen tapes, calculation was done using log tables

and slide rules, or long multiplication and

division (do people still have these skills? I

doubt it!). Information was gathered together

manually and by trawling through large

handwritten volumes containing rents, sales

and land transactions. Information from

land registry, solicitors and estate agents

all arrived on single bits of paper (anyone

remember PDs, particulars of delivery?). Any

analysis was carried out by trawling through

written records and handwritten files.

Now page forward to my last few years. I

sit at my workstation able to access large

amounts of information in short periods of

time, run reports across files, fill spreadsheets

in minutes, and analyse and manipulate

information to my heart ’s content.

The rating profession has changed

in the last 40 years. Am I happy to

have left this all behind me?

You guess!

Ian Ballance is a former President of the IRRV

Scottish Association. He was formerly Depute

Assessor for Central Scotland

“The previous 39 years were full of incident, had a number of twists and turns, and a number of occasions where I could not have second guessed the various outcomes.”

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IRRV Annual Conference

& Exhibition 2013Telford International Centre,

2nd-4th October 2013

Book now – go towww.irrv.net

Duncan Baxter, IRRV (Hons) is Senior Vice

President of the IRRV’s Lancashire and

Cheshire Association and Director with

Destin Solutions Limited22

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Back office processing

methods than simply sending another set of

reminder letters – on this point alone, how

much does it cost to send a reminder to a

customer that you already know will pay late?

Finally, from a technology point of view,

look at the systems used to record the

information. Are they designed to do the

job, or is a square peg knocked constantly

into that round hole? Look at whether the

current systems for generating management

information are giving you what you need, or is

it a case that the information is generated and

filed away for no purpose whatsoever?

With large databases containing extensive

caseloads, it is inevitable that cases do get

left, either because the systems fail to pick

the cases up, or they fall into a category which

are never checked. As I have said in previous

articles, the biggest offender in this scenario

is the large printed report that users work

through. After a short period of time the report

they are working on is binned, as another

A little thought and joined-up thinking goes a long wayWith income maximisation and collection

now back as the top priority for local

authorities, I believe that it is time to look at

the key components that affect performance.

Turning initially to the people – take for

example non-domestic rating (NDR) – as

we know, this is the long forgotten corner

of local authority finance. It is the team that

just got on with things, never received

anything, but still managed, despite the

low numbers of staff, to keep on top of

things. Our local Association events are

seeing large numbers turn out for our

NDR seminars. Why? Well I could say it

is because they are well run, which they

are, of course! Joking aside, though, to

me the main reason is that authorities

are seeing that now is the time to

train staff in the ‘whys and ways’ of

NDR, to boost the teams, to widen the

knowledge, and to put resources into an

area that if staffed and managed can see

a substantial return in investment. Adding extra resources will ensure

that the team is not just dealing with the

day to day activities, but is able to deal

with tasks that someone starts but never

finishes, seeing that areas that are never

looked at get looked at, that industrial

estates that are never inspected are

inspected, that liaison with agents and

site offices becomes the norm rather than

just a thought. Why do this? Simply because

billing on time, registering properties upon

completion, establishing actual occupation

dates, and having an accurate/update record

set is key to income maximisation.

From a process point of view, why

not challenge the methods involved,

question the rigid nature of the recovery

process, and review the process involved

in identifying cases for action? Is this done

purely as a ‘firefighting exercise’, or is every

case carefully analysed? Look at ways

of contacting customers that are cheaper

version is available. A far more effective

approach is to work on a list of cases that you

know is always up to date.

Looking at things from a corporate point

of view, the silo approach to debt between

departments has a major impact on collection.

This is as a result of the departments either

not sharing information, or not requesting

information from other departments.

When a debtor contacts an authority

about council tax, I imagine that in the

vast majority of cases an arrangement

is made without contacting other

departments. Why is this the case?

Well, again I imagine it has always

been done that way – council tax

is the only concern of the member

of staff dealing with the enquiry,

and probably most importantly that

there are no systems in place to

provide that single view of what

that customer actually owes. Yes,

there would still be the issue of how

you make an arrangement to cover

multiple debts, but would it not be

in the interest of the council overall

to know the circumstances of the

debtor, the level of debt, log that the

customer has made contacts, etc?

From a ‘customer care’ point of

view, the debtor only needs to make a

single call to deal with all of their debts – was

this not the point of NI14?

Whilst none of the above may seem

extreme, I believe by reviewing current

procedures, by applying resources where

needed, and by introducing bespoke

technology, local authorities can maximise the

amount to be collected.

“Look at ways of contacting customers that are cheaper methods than simply sending another set of reminder letters – on this point alone, how much does it cost to send a reminder to a customer that you already know will pay late?”

...concludes Duncan Baxter

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Co-location supports the implementation of the Benefit CapJobcentre Plus has worked closely with

Enfield Council over the last 18 months

to deliver a cohesive offer to benefit claimants

in Enfield. With the Benefit Cap projected

to impact over 2,000 households, strategic

discussions focused on how partner organisations could work collaboratively to

mitigate the Benefit Cap’s impact, and promote

work as the most beneficial outcome.

Following discussions through the council’s

Welfare Reform Steering Group, a Benefit Cap Steering Group was created with

representation from across different arms

of Enfield Council, including Revenues and Benefits, Housing and Customer Services,

the Citizen Advice Bureaux (CAB) and

Jobcentre Plus. The Steering Group set the

strategic direction for collaborative support and

an early outcome of the Group was agreement

to co-locate Jobcentre Plus staff with council

colleagues in Enfield Civic Centre. Co-location was in place from October 2012.

The co-located team, known as ‘The Taskforce’, was managed by the Enfield Council

Revenues and Benefits Manager, formalised

through a memorandum of understanding

between Jobcentre Plus and council senior

managers, and directed through the Benefit Cap

Steering Group. The Taskforce objectives were:

• to support over 600 households potentially

affected by the Benefit Cap to develop their

own personal plans to address their situation,

including employment support, money advice

and housing options

• to encourage employment as a route out

of poverty

• to ensure claimants fully understand their

housing options

• to minimise levels of debt through effective

money advice and debt counselling, working

in partnership with Enfield Citizens Advice

Bureau and other voluntary organisations.

These objectives were informed through an in-

depth diagnostic of those impacted. The group

had taken into account the work Jobcentre

Plus staff had undertaken since May 2012 to

engage with claimants and existing support

provided through council services, such as the

work with Troubled Families.

Co-location supportJobcentre Plus has been offering employment

support to claimants potentially impacted by the

cap since May 2012 through dedicated Benefit

Cap advisers in the three Enfield Jobcentres.

The Taskforce included additional Jobcentre

Plus staff working as one co-located team in

council premises, delivering a co-ordinated

offer of employment and housing support and

advice to those prioritised.

Support was arranged, taking into account

housing tenure and financial loss. The team

ensured those impacted were aware of the

potential changes to their benefits, and assisted

them in making behavioural changes to reduce

the cap’s impact. The selection of Enfield Council

for phased implementation of the Benefit

Cap provided additional incentive for effective

collaboration. The Taskforce engaged with those

claimants, and ensured links were established

with Work Programme Providers and Jobcentre

Plus advisers, to avoid duplication and ensure

bespoke employment support was available

to those impacted. Joint working in council

premises and the effective use of data sharing protocols facilitated this and other joint activity.

The Taskforce co-ordinated and delivered:

• multi-agency sessions in children centres and

community hubs

• targeting of Income Support and Employment

and Support Allowance claimants

• support for non-English speaking claimants

• awareness and briefing sessions for partner

organisations, elected members and MPs.

The team’s work fed into wider partnership

activity, leading to the development of

employment focused events targeted at those

impacted by the Benefit Cap, with Jobcentre

Plus and Enfield Council as lead partners.

A Jobs Fair was held by Jobcentre Plus in

partnership with Enfield Council, Barnet and Southgate College, voluntary sector and training providers in Enfield, and numerous

employers. Almost 1,000 claimants attended,

with many progressing to employment support

and some into employment.

As the Benefit Cap implementation

approached, the Steering Group revised the

team roles to ensure smooth implementation.

An additional Jobcentre Plus member of staff

was provided to mitigate increased contact from

those impacted and support local resolution of

queries regarding the capping process.

The welfare reform agenda has provided an

unprecedented opportunity for Jobcentre Plus

to work with all arms of the council, with the

common goal of mitigating the effects of the

Benefit Cap, primarily by assisting people into

employment. The relationships formed provide

the basis for continued joint working as we

move towards Universal Credit.

An example of successA lone parent with three children had claimed

Income Support since 2007. In November

2012 the claimant attended a Benefit Cap

drop-in session at a local children’s centre

delivered by the Taskforce. The claimant was

informed about the Benefit Cap’s impact, and

available back-to-work incentives. The advice

convinced the claimant that employment was

the best option and they looked for work with

the assistance of their Jobcentre Plus adviser.

Having accessed local training to address

employment barriers, the claimant secured

work for 16 hours per week, thus becoming

eligible for Working Tax Credits and exempt

from the Benefit Cap. In-work support was

provided through the DWP Flexible Support

Fund, to ensure employment was sustained.

The Benefit Cap Project team can

be contacted by email on:

benefitcap.external@dwp.gsi.gov.uk.

“The team ensured those impacted were aware of the potential changes to their benefits, and assisted them in making behavioural changes to reduce the cap’s impact.”

Welfare reform

...the Department for Work and Pensions

outline, in their regular update

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Technology special

can’t are not excluded.” The GDS has put user

needs ‘at the heart’ of designing and providing

online public services, so that those already

on the internet will prefer to stay online. It also

means that those who cannot or will not use

the internet will be helped to access an online

service either face-to-face or by phone.

Interestingly, the National Audit Office

(NAO) published a report, in March of this

year, called Digital Britain 2: Putting users at the heart of government’s digital services. The report examined the

government’s Digital Strategy for moving

public services online. According to the

strategy, central government provides more

than 650 services, and wherever possible the

government will “deliver online everything that

can be delivered online”. Again it is made clear

that the strategy recognises that not every

step of a public service can become digital.

Practical driving tests are a good example

of a part of a public service that cannot be

provided online – however, people can book

the test online. Examiners complete forms

at the end of the test, but that could also be

made digital.

As part of the report, the NAO surveyed

people and small and medium-sized

businesses, and also ran eight focus

groups. Face-to-face surveys were held with

3,105 people across England who were

representative of the English adult population.

For people who are online, the respondents

were asked about:

• access to the internet

• capability to use the internet and carry

out transactions.

For people who use online public services, the

respondents were asked about:

• trust in government in terms of entering

personal details on the internet

• satisfaction with government online services

• awareness of government online services.

Willingness to transact online is still a bit of a mystery

There has been a significant amount of

rhetoric about making everybody claim

Universal Credit online. The term ‘digital by default ’ has been bandied about, striking

fear into those people unable or unwilling

to go online. However, a new term has

been created – ‘digital as appropriate’ –

supposedly by Department for Work and Pensions (DWP) officials.

If this is the case, then the government

may be shying away from its 80% target of transactions online. However, a DWP

spokesman said, “Claimants to Universal

Credit will engage with the new benefit online,

and our digital by default emphasis has not

changed. Since the very beginning we’ve

known that some people will not be able to

manage their claim online, and that’s why

they will be able to get help from us over the

phone and in person. We have been working

with local authorities on the best ways to

help people get online and be digitally

independent for a number of months now.” If

telephone and face-to-face support is being

provided, then perhaps it should be called

‘digital where possible’.

But what is ‘digital by default ’? The

Government Digital Service (GDS) is

implementing the digital strategy, and the

government’s move to ‘digital by default ’.

The GDS has defined ‘digital by default ’ as,

“digital services that are so straightforward

and convenient that all those who can use

them will choose to do so while those who

For people who were deemed to be off line,

the respondents were asked about:

• reasons for not using the internet

• intentions on using the internet in the future

• help they got from others to go on the internet.

The NAO asked people how they would feel

if more public services were available online.

Of the 3,739 comments received, 48% were

positive, with comments such as “it’s a good

idea”, “it would be easier”, “make life easier”,

“provide easy access”, “it would be better” or

“an improvement”. However that means that

52% may have made a negative comment!

There may be a significant number of

people online, but what are they doing?

Of the top ten tasks, unfortunately visiting

government websites was the lowest.

Sent or received emails 98%Viewed news and information 88%Shopped for goods online 84%Viewed a video or listened to video clips/webinar/podcast 78%Booked an event 74%Paid a bill 72%Used price comparison websites 69%Downloaded or streamed entertainment content 67%Used social networking sites 66%Used a government website to find information 62%

Even more interestingly, when people do

interact digitally with public services, for

the 20 services specified, the proportion

of transactions carried out online by those

with internet access ranged from 45% for

housing benefit to 86% for student loans. From my own personal perspective,

it is worrying that out of the top 20 services

highlighted, housing benefit is at the bottom

of the table. Whilst it could be argued that

the complexity of housing benefit may deter

people from claiming online, if you have ever

...discovers Simon Bailey

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applied for a student loan you will know that

this is just as complex. There may be other

reasons for the lack of online take up of

benefit forms, such as a lack of publicity,

ease of other routes such as face-to-face, or

possibly the age of claimants.

Applied for a student loan 86%Applied for a school place 85%Booked a practical driving test 83%Searched for a job through a government service 82%Booked a theory driving test 81%Applied for a tax disc 80%Filed a tax return (self-assessment) 77%Applied for, renewed, or updated a driving licence 69%Applied, or paid for, a TV licence 65%Paid a court fine 65%Filed company accounts and tax returns 64%Applied for planning permission 61%Applied for, renewed, or updated a passport 60%Applied for Jobseeker’s Allowance 59%Paid PAYE tax 57%Criminal Records Bureau check 51%Applied for disability living allowance 50%Ordered a copy of a birth, death, or marriage certificate 49%Claimed a state pension 46%Applied for housing benefit 45%

It is thought provoking as to why people aren’t

going online to transact with public services.

The NAO asked their focus groups why

people did not transact with the government

online. The responses included that people

sometimes preferred to do government

business face-to-face or by phone, or

they did not feel comfortable doing certain

transactions online, such as registering a death. Other themes from the focus groups

included the following:

• concerns about making a mistake during a

transaction. Warnings to online service users

about making false declarations, for example,

were described as ‘scary’

• the need for assurance that they were

dealing with a government department on

the internet, as such assurance was provided

through a contact centre or office

• a need for physical confirmation of their

transaction (such as a receipt).

People are used to using the internet for

shopping and banking, which involves giving

personal information online. The report

analysed trust in government websites

compared with trust in private sector websites.

It was found that the online users surveyed

were more comfortable sharing information

online with the government than they were

with shopping and banking websites. This

is despite government websites tending to

require more personal information than retail

or banking sites.

• 37% of people were happy to enter

personal details on to government websites,

compared with 34% for banking websites

• 17% were prepared to provide personal

details despite having security concerns,

which is about the same as for banking

websites at 18%

• 5% did not use government websites

because of security concerns, compared with

11% for banking.

So if people trust government websites, why

aren’t they going online? The report’s findings

are very curious. I always assumed that lack of knowledge or fear of the internet were

the primary reasons. However, the report

found that the main reasons for those not

intending to use the internet were a lack of interest (66%) and the perception that

there is no need to use it (31%). Another

common reason is not having the necessary equipment. However, cost is not cited as

a major deterrent to going online in the next

year. Lack of understanding or worry about

using the internet only scored 6%.

In conclusion, ‘digital by whatever name it is called’ will work. There will always be those

people who don’t want to go online. However,

if the main reason is lack of interest, perhaps

there needs to be some work done to remove

that barrier and stimulate interest. As Universal

Credit is rolled out, perhaps this is where local

authorities can contribute.

“It also means that those who cannot or will not use the internet will be helped to access an online service either face-to-face or by phone.”

“It was found that the online users surveyed were more comfortable sharing information online with the government than they were with shopping and banking websites.”

Simon Bailey IRRV (Hons) is a Director of

ISCAS – contact him on simon@iscas.co.uk

(www.iscas.co.uk)

IRRV Annual Conference

& Exhibition 2013Telford International Centre,

2nd-4th October 2013

Book now – go towww.irrv.net

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Technology special

show your professionalism and care for

your customer by protecting them against

fraudulent websites. This is done by controlling

the images, your branding and accreditation

marks, so that the visitor can see with absolute

confidence that you are protecting them.

And a confident visitor is more likely to take

positive decisions in favour of your services!

Security partners to the TSIThe Trading Standards Institute (TSI) has

recognised this with the launch of its new

TSI approval badge. To let this loose on the

internet without protection, yet, implying

by its use that the badge is authentic/

and up-to-date, is a typical scenario that

provides no real protection for the consumer.

Nearly all accreditation marks on the web

can be considered useless without this new

technology. Who is to say to the visitor has not

been copied and pasted right onto a website

with no foundation to it at all?

The TSI have engaged with Global Brands

Protection Limited (GBP) and its key online

solution Yoshki.com to become online security

partners. The new badge can be clicked

As the fight for more efficiency continues

within all local authorities, the provision of

services and local authority credibility must

remain consistent, indisputably first class,

safe and dependable from both the authority

and the citizen’s point of view. How are these

approved, accredited, and that fundamental

level of tracking portrayed to the citizen without

incurring extra unnecessary cost, and at the

same time adding benefit to service provision?

Well, there is new technology in online and

offline arenas that do just that, allowing the

authority to monitor, control, accredit services,

and broadcasting to the citizen just how much

value the authority adds to ensuring high

standards through clear accreditation marks

and transmitted information. Also, if necessary,

action can be taken against failing or poor

services through fundamental control of

accreditation, and easy channels of feedback

from the citizen.

As our society goes online for just about

anything, and growth in that direction is a

certain thing, how does the confidence of the

website visitor affect their decision making?

We are all now subject to the horror stories

of fraudulent calls, house callers, and even

websites that search for personal information.

We hold our own counsel on what we see and

make a decision to reply on the website often

based on the visual value of a website and

graphics like trustmarks, and sometimes just

the professional style of the site.

Display your professionalism with confidenceNow there is new technology that is starting to

make a mark and guarantee that confidence

to the website visitor. Technology that will

right on screen, and an immediate check on

the validity of the code member is made.

If everything is up-to-date, the closed loop

technology will verify the code member right

there within a few seconds and give a green

tick of approval. Then the loop returns the

visitor to the authorised website. Without

this, how does the consumer visiting the site

even know if this member is up-to-date and

currently practising to standards?

Image control, protection, validationFurther benefits of the technology allow the

images like the logo and accreditation marks

to be updated easily from a central control

panel. As the images are added as a live

dynamic link into the webpage via the Yoshki

patented system, they are controlled easily

from the control panel and can be changed in

moments. If the link is served onto multiple

pages or websites, the entire set of websites

can be updated in one

go. For instance, a new

logo design can be

updated in one go. The

images are protected

from simple right click

copying and a warning

sign (image appears)

can be added with

customised words telling

the visitor about the

control and protection.

This prevents copying

on any format – PC, Mac, mobile devices and

tablets etc.

The technology gives in-depth reporting on

usage of images and geographical information.

If an image needs changing, it is simply

changed on the control panel and updates

automatically the next time any visitor looks

Consumers need confidence! ...that’s the message and aim of the Global Brands Protection team

“As our society goes online for just about anything, and growth in that direction is a certain thing, how does the confidence of the website visitor affect their decision making?”

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at that page. This technology is available for

utilising on your individual websites with ease

and at a low monthly charge, depending on

how many images you require, and if the

validation of the website is needed. In a similar

way to the accreditation mark being validated,

checking a web page validation button can be

added to encourage the visitor to click on it

and check that the website is genuine at any

stage of their visit, on any page.

Worrying apathy?A recent survey GBP completed showed that

out of 100 major websites there were below

ten per cent that had made any attempt to

protect the visitor from any of the following

safety checks:

• there was no prevention/deterrent from the

logo being copied

• there was no prevention or deterrent from

the product images or photography being

copied and reused

• there was no system to validate or effectively

ensure the consumer was on the website

they thought they were on, especially when

they were about to enter personal user

information into forms on the website. In

fact, copycat sites can hide behind a very

subtle change in the the domain name that

many of us would not notice. This system

prevents that.

Also, there was no attempt to validate a

whole range of accreditation marks that are

placed there to prove the person, service or

organisation is genuine and up-to-date.

Adding protection, control and validation

onto a website puts in some fundamental

safeguards not just for the consumer using

the website, but equally as importantly for

the stakeholders and shareholders of the

organisation. Without protection, there is no

deterrent from the organisation’s website

being fraudulently scraped in seconds by

criminals with easily available software, where

everything, including all images on a website,

can be extracted and then misused. The

foundations of an organisation can be ruined,

without senior staff even realising.

Return on investmentOn the other hand, using this technology

has a positive ef fect on consumer

confidence and ease of control for the

organisation to simply change images and

logos, as required. The return on investment

is the creation of a positive and trusting

atmosphere for consumers, and preventing

damage to an organisation.

Crypto technologyA fur ther GBP solution allows this evidence

of validation to be taken of fline with the GBP

crypto system. Here a 2d QR code can be

displayed on ID cards, of fice locations, on

vehicles, and even as an additional visual

forensic link online. The QR code is easily

read with commonly available phone apps,

PC app, scanners, etc., allowing the public to

scan the code – and this simply (in seconds)

reveals de-encrypted DNA level information

about that organisation, person, membership

or whatever information may be most

suitable. The military strength encryption

is so powerful that even highly valuable

information to validate a onetime document

can be encrypted into the code, along with

an image of the document, for example.

This would then give the document, ID

card, operational vehicle or of fice premises,

undisputable validation. The person’s visual

photo ID and qualif ications, etc., could

be included, and in no way could it be

tampered with.

Bespoke systems There is no doubt that simply to use systems

such as these will enhance your credibility.

At an individual level, GBP can advise and

provide these services at a low monthly cost,

along with full support to implement the

technology. With the TSI new badge launch,

there is going to be an increasing number

of consumers looking for the validation they

deserve, in these times of rapid change and

increased fraudulent activity.

ConclusionAll this technology needs to be justified. It

For further information, contact Global Brands

Protection on 0843 289 6376 to discuss your

possible needs from one logo, to protection

and validation of an entire website. Or contact:

Marc Howard on 07798 648084,

marc@globalbrandsprotection.com

or

Danny Howard on 0782 694 6999,

danny@globalbrandsprotection.com

or

Jill Carding (USA Office) on

jill@globalbrandsprotection.com

and visit the website at

www.globalbrandsprotection.com

may not be expensive, but any added cost will

need to bring real benefits. Local authorities

have a continuing obligation to bring services

to their citizens in an easy and understandable

manner. Consumers are more sophisticated

in the way they research and utilise online

services. They expect their authority to present

its services online, and above all to bring

accuracy and clarity to its service offerings.

In many ways, this obligation gets passed on

to service providers to present themselves and

their qualification of service. Often the council

needs to accredit these services. Where there

is safety and quality of service standards that

need legally to be met, the authority may

need to monitor those services and the way

they present online. Sometimes they are self-

regulated, but this needs to be tracked.

There has always been a danger that

with the vast expansion of new business

and services, and those being presented

online, how does the authority track the valid

companies, tradesmen and qualified providers,

and if they are still valid to show accreditation

from the authority? On the other hand, how

does the service provider know they can

present as an authorised service after time

has elapsed? How can they be sure their non

compliant competitors are not dishonestly

presenting as authorised services?

GBP is introducing new technology that is

simple to implement, and this changes the

horizon on control of these accreditation

marks, for both the citizen and local authority.

The technology discussed above can provide

the authority with a strong and visual

credibility that the citizen can see really means

something. Important tracking and control, with

easily updated accreditation marks, but most

importantly the citizen can gain that piece of

mind and confidence in the services that they

see online from the authority.

“Without protection, there is no deterrent from the organisation’s website being fraudulently scraped in seconds by criminals with easily available software, where everything, including all images on a website, can be extracted and then misused.”

Sean Langley FIRRV is a benefits and

revenues consultant, and author of

©The phat Controller (A Leadership

Handbook). Go to www.seanlangley.co.uk28

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Management

Tesco, about cherry bakewells, on

www.moneysavingexpert.com . What

I found interesting was the customer

engagement, which illustrated to me that

the company was an organisation that took

customer complaints very seriously, warmly

responding with humour.

Recently, I have had cause to escalate,

to OfCom, a complaint I had about my

mobile phone supplier – name withheld!

In the investigation, the Ombudsman has

found the supplier guilty of inadequate

operational practice.

In all these examples, the feedback is a gift

to those organisations, should they choose

to use it, and all point to a concept first

articulated by Peter Senge in his book The

Fifth Discipline: The Art and Practice of the

Learning Organization in 1990.

Learning organisations, as defined by Senge,

are, “where people continually expand their

capacity to create the results they truly desire,

where new and expansive patterns of thinking

are nurtured, where collective aspiration is

set free, and where people are continually

learning to see the whole together.”

He further argued that there are five

components to an effective learning

organisation. Whilst I won’t delve into all of

those here, the cornerstone of his strategy

was Systems Thinking – at the core of

which is that organisations should look at their

processes as a whole system, rather than as

individual parts.

Consequently, what might appear to be a

straightforward improvement to an element of

the process, may end up disrupting the whole,

leading to a negative rather than positive

outcome. In other words, look at the whole

system, rather than just a part.

What Senge went on to explain was that

feedback is an essential element of good

Systems Thinking, as it is of ten possible to

overlook something simple that can make

a dif ference, but it is impor tant to take

Agar the Horrible ...not really!

I have just witnessed on television an

extraordinary debut in international sport:

Ashton Agar, a virtually unknown 19 year old,

playing for Australia in the first Ashes Test in

Nottingham. Agar’s selection as a bowler raised

a few eyebrows, but what was even more

remarkable was his performance as a batsman.

The toiling England bowlers failed to

recognise that Agar was more talented than

his batting position indicated, as he notched

98 runs and recorded the highest score by a

number eleven batsman in Test match history.

Sir Ian Botham remarked in commentary,

“Will they never learn? ”, as yet another ball

was smashed to the boundary.

Sir Ian’s observation applies as much

to business and service as it does to

sport. In order to develop and improve, all

organisations (and individuals employed

within them) need to learn.

I am sure many of you share my frustration

when inundated with Freedom of Information requests, which generally do

little other than eat up resource. However,

customer complaints are a different

matter. They are potential gifts from which an

informed organisation can learn.

It is often said that, as a nation, we do

not complain enough. I would urge people

to complain more often. I am talking about

objective complaints, not whingeing. The

reason being that all organisations can benefit

from the feedback that proper complaints

afford them.

For example, my son Jack last week

complained to Hampshire County Cricket Club after he had glass bottles containing soft

drinks confiscated at the gate. He immediately

complained to the club that nowhere was this

stipulation made clear, only that alcohol was

not permitted. Commendably, they quickly

responded with free tickets, but have they

really learnt from the incident?

This week, I also picked up a transcript

of a tongue-in-cheek complaint to

context into account before rushing into

decisions of change.

The significance of this is that you might

rapidly respond to a complaint – in the way

that Hampshire County Cricket Club did in

the example I gave above – but, you should

take appropriate time to consider what learning

can be gained from the feedback received,

before committing to a particular outcome.

An organisation has to recognise and accept

the need to change. Pressure for change is

not enough in itself, nor is the recognition of

that pressure. The necessity of responding

to the pressure is what’s needed. Once that is

evident, attention can be paid to the options

for change.

Rather than simply responding to problems

by corrective action in respect of existing

operational practices, the learning organisation

will consider the context which is leading to

such problems. It will question the operating

practices and procedures, and explore the

policy and cultural framework.

Do not forget one other critical aspect of

Senge’s concept, which is the collective approach to problem solving. The

consideration of change, and solutions

development, needs to be done as a

‘community ’ within organisations – collective

learning! Only then will there be a lasting

improvement in performance.

The learning organisation can build, in a

proactive way, the need to recognise and

respond to the driving forces for change into

its culture and structures.

I wonder if my mobile phone supplier is one

of those?

“I am sure many of you share my frustration when inundated with Freedom of Information requests, which generally do little other than eat up resource. However, customer complaints are a different matter.”

Sean Langley urges everyone to be on the lookout for continual learning

Don’t panic, Mr Mainwaring, nothing has changed, really... except localism!

“In two of the cases, the billing authorities had successfully obtained liability orders for rates against the Trust, on the basis that it was not entitled to mandatory relief.”

Peter Scrafton concludes his mini-series, focusing on recent charity case law and more

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Sunderland City Council v Stirling Investment Properties LLP [2013] EWHC 1413 (Admin) By sheer chance, the point about de minimis

occupation came up in a case which was

decided, again in May, which concerned the

existence of a single Bluetooth device,

with battery and wires, in a hereditament

with a rateable value of over £50,000.

The Court reviewed the authorities on the

‘actual occupation’ limb of the so called

‘ingredients’ of rateable occupation, and

decided that occupation by the Bluetooth

device was sufficient for a finding of rateable

occupation, on the basis that the Bluetooth

occupier actually occupied a part (albeit a

small part) of the hereditament, and that

such use was within the contemplation

of the occupier when it took its lease,

notwithstanding that the hereditament was

originally constructed with a different use

in contemplation.

The finding in Stirling was that the ‘hurdle’

of de minimis occupation, if such it be, was

overcome. It should be noted, also, that the

trial judge received written submissions from

the very eminent counsel, on both sides,

following the decision in PSCT and held (rightly

in my view) that, in PSCT, rateable occupation

was assumed, and thus the latter case was on

a different point from Sunderland, namely that

of entitlement to charitable relief.

Public Safety Charitable Trust and Another v Milton Keynes Council & Others [2013] EWHC 1237 (Admin)The facts of this case have broad similarities

to those in Kenya. The Public Safety Charitable Trust, a registered charity, took

leases of commercial properties for a nominal

rent, and received reverse premiums from

its landlords. The Trust placed broadcasting transmitters in each property, connected

to an existing power supply, which provided

free wifi to anyone within range, and also

broadcast Bluetooth messages on crime

prevention and public safety to Bluetooth

users in the vicinity. These transmitters were

operated remotely and, apart from occasional

maintenance visits, the properties were

otherwise unused. The extent of each property

used for the charitable purpose was minimal

(estimated to be around 0.1%).

This was a test series of cases for the

Trust, and involved three separate appeals. In

two of the cases, the billing authorities had

successfully obtained liability orders for rates

against the Trust, on the basis that it was not

entitled to mandatory relief. In the third case,

a liability order had been refused by a district

judge who had found for the Trust. The

appeal in this third case was brought by the

billing authority.

The issue for the High Court was whether

the correct test for whether a property is

‘wholly or mainly ’ used for charitable

purposes is the extent of use of that property

or the purpose of the use.

In Kenya the Divisional Court had clearly

determined that the former approach was

the correct test. Unsurprisingly, the judge in

the Trust case was not prepared to depart

from that decision (which was by a superior

Court in any event). He considered that it was

Scrafton’s law

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Scrafton’s law

case, the district judge seems to have fallen

into error – and the High Court has done

no more, in declaring that regard should not

be had to the extent of a hereditament, if

challenged in collection proceedings, than

repeating that valuation matters cannot be

challenged in collection proceedings, and vice

versa, as regulations provide.

Makro Properties Limited v Nuneaton and Bedworth BC [2012] EWHC 2250 (Admin)This case is not directly relevant to the

bulk of charitable relief cases, as it deals

with the question whether a putative rateable occupier was in fact in rateable occupation, as the term is currently

understood, even though it occupied only

0.2% of the floor area. In the bulk of

charitable relief application cases, the facts

of rateable occupation are fulfilled, and the

questions relate to the purpose for which

the premises are used, and the extent to

which they are used for such purpose.

In Makro, the High Court, in the person of

a judge of the Lands Chamber of the Upper Tribunal, reviewed long lines of authority, and

gave what is, in my view, a good and firm view

of what constitutes rateable occupation, and

that occupation of but a small part thereof can

be treated as occupation of the whole. This

principle was affirmed in the Kenya case.

Unoccupied property held by charitiesIn relation to unoccupied property held by

charities, the second qualification to the

statutory definition (see s43(6) above) is

modified so that it must appear that, when

next in use, the hereditament will be wholly or

mainly used for charitable purposes (whether

of that charity or of that and other charities).

This provision has not been challenged by

these decisions. Some billing authorities

make it their pragmatic practice to withhold

relief until the charitable use starts, which

is understandable, but which can make life

reasonable to infer that Parliament’s intention

behind the mandatory exemption for charities

in occupation of a building was that the use

of that building be, “substantially and in real

terms for the public benefit, so as to justify

exemption from ordinary tax in the form of

non-domestic rates”.

The view which the judge expressed

seems to me to be a reasonable and pragmatic way forward, excluding the

more esoteric approaches, on the one hand,

but not laying down any strictly calculated

arithmetical proportion of floor use for a

particular purpose in order to achieve relief,

on the other. The latter course would be

inappropriate, and could lead to an unjust

result in circumstances where, for example,

weight loading restrictions limit the proportion

of floor area which may be employed, but

which do not prevent use within the definition

suggested above.

Frankly, I was not at all surprised by the

decision in the Trust case, and it is clear

from comments received from practitioners

of some seniority and experience, that they

were not surprised, either. In these days of

the purposive construction of legislation,

rather than strict construction against the

taxing authority, it was perhaps to be expected

that the Trust would fail. But let us not be

judgmental – mine is only a personal view,

based on the published judgment, and the

Trust, of course, may have a right of review,

which it may choose to pursue.

There was a further issue, in connection

with the consideration by a district judge of

the extent of a particular hereditament, when

deciding whether or not charitable relief

should be given. It does not impact on the

issues surrounding the giving or withholding

of the relief, save that it confirms that the

district judge was right to hesitate when

considering whether or not a hereditament

had been identified, correctly, by the

Valuation Office Agency. In the instant

difficult for smaller charities, in particular.

The Charity CommissionAs this article is partly to do with charities, it

is appropriate to be aware of what the Charity

Commission is saying. The Commission

registers and regulates charities, and has been

taking an interest in charities which take empty

property belonging to others, whether by

lease or licence, and which thereby potentially

expose themselves to a risk of being required

to pay unaffordably large rate bills, should

applications for mandatory charitable relief fail.

In a statement released following the

judgment in Kenya, Michelle Russell, Head

of Investigations and Enforcement at the

Commission, said:

“Being able to lease properties at a low

cost to use for charitable purposes helps

charities keep their costs down. Where we

have evidence that trustees are not exercising

their duty of care and taking proper decisions,

or systematically not using leased properties

and allowing the good name of charity to

be abused for the benefit of commercial

companies, we have and we will take firm

regulatory action. Charities are held in high

esteem by the general public, and trustees

must ensure they do not enter into agreements

that could jeopardise that public trust.

The Commission has received information

from a number of local authorities concerned

about situations where charities are entering

into tenancy agreements on commercial

properties but where in practice the properties

are, or appear to be, empty and/or only

minimally used. The Commission has been

engaging with a number of local authorities

who have raised concerns. The Commission

is concerned that these charities may find

themselves involved in what local authorities

might consider to be business rates avoidance

by landlords. As seen in this case involving

The Public Safety Charitable Trust Limited,

this could result in charities losing not just the

“Some billing authorities make it their pragmatic practice to withhold relief until the charitable use starts, which is understandable, but which can make life difficult for smaller charities, in particular.”

IRRV Annual Conference

& Exhibition 2013Telford International Centre,

2nd-4th October 2013

Book now – go towww.irrv.net

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discretionary discount, but being required to

pay full business rates.

Before entering into any tenancy

agreements to occupy empty properties,

charity trustees must:

– be assured that the tenancy agreement is

for the exclusive benefit of the charity, will

further the charity’s purposes and is in its

best interests

– ensure the property is genuinely required

and is fit for purpose

– consider the potential liability of the

charity to pay outstanding rates if the local

authority disputes use of the premises and

refuses rates relief

– very carefully safeguard the charity’s

independence and ensure the charity

is not being abused for the benefit of a

commercial company

– where appropriate, take suitable

professional advice, including legal advice,

before entering into a tenancy agreement.

The Charity Commission has been made

aware of a number of charities who have

entered tenancy agreements and is examining

whether the trustees of the charities involved

have properly discharged their trustee duties

when making the decisions to occupy those

properties to further their charitable purposes,

and whether any benefit to the landlord is

incidental to that.”

There was, it seems, already an ongoing

investigation into Kenya prior to the hearing

in the Divisional Court; and, if there was not a

similar investigation on foot in relation to the

Trust, doubtless there will be now, if reports

that its accounts disclose that there are no funds available to pay the rates now falling due, are correct. It is said that up to seven hundred charities are subject to

investigation, or, at least, enquiry.

ConclusionI do not believe that the substantive law on

rateable occupation or on charitable relief from

rates has been changed by these decisions.

It has been clarified, perhaps, as to what

constitutes ‘wholly or mainly’, and it will be

interesting to see what emerges in the re-run

of the Kenya case. Otherwise, in summary:

• neither statute nor regulations have

been amended

• what constitutes rateable occupation has

not been changed, although where the use

of a hereditament is small, the door would

seem to be open to a billing authority to

try to argue some concept of de minimis

occupation, although the ratepayer would

be able to pray in aid over two centuries

of cases, holding that occupation of part

constitutes occupation of the whole (argued

aggressively by billing authorities until the

advent of the present empty rate in the

2007 Act (see above)). Ratepayers would

also be able to argue the animus revertendi

Peter Scrafton FIRRV, FCIArb, MRSA (Hon),

Solicitor (Non-Practising), Accredited

Mediator, is a legal and valuation consultant

and a member of the IRRV Council. He can be

contacted at jpscrafton@jpscrafton.com

(intention to return) principle adverted to,

albeit indirectly, by the judge in Makro. They

will also have the support of the Stirling case

• tax avoidance is not likely to be a relevant

factor in this area, and so there is no

objection to charities receiving donations

from landlords/licensors provided that the

premises are not used for fundraising, and

the Charity Commission’s warning (in the

case of a charity) is observed

• billing authorities will need to become

steadily more attentive as the implications

of ‘localisation’ of rates sinks in, and it will

therefore behove ratepayers to follow the

principles and guidance, as strictly as may

be, and to liaise with local authorities closely,

throughout, if only to seek to avoid the kind

of aggressive interrogation, mentioned above.

So, Mr Mainwaring – don’t panic! Train your

staff, and avoid any unnecessary litigation.

“I do not believe that the substantive law on rateable occupation or on charitable relief from rates has been changed by these decisions.”

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Doherty’s despatch

The RAC Foundation report also makes clear

that “...parking charges and fines help councils

keep traffic flowing and pedestrians and

motorists safe. They also help keep the roads

clear for emergency services and business

deliveries, and ensure people can park near

their homes or local shops.”

Of course, and predictably, the Local Government Secretary had to have his say

in his response to the report – “This profit

shows why we need to review and rein in

unfair town hall parking rules... Councils aren’t

listening, and local shops and hard-working

families are suffering as a result. The law is

clear that parking is not a tax or cash cow for

town hall officers.”

Additional Discretionary Housing Payments fundingAdditional funding totalling £35m is to be

provided to local authorities for residents who

have been affected by the so called ‘bedroom tax’. The Department for Work and Pensions has set aside the additional funding

as part of its ‘rolling review’ of its welfare reform policies, according to a letter from

welfare reform minister Lord Freud.

The majority of the funding is forming

a £20m pot of additional Discretionary Housing Payments (DHP), for which councils

can bid. There is to be ‘some flexibility ’ about

how the money can be spent, according to Lord

Freud’s letter. He suggests subsidising people’s

rent and outreach work as one approach, but

the exact details of the grant scheme are to be

developed “over the coming weeks”.

Another £5m of DHP has been ring

fenced for remote rural areas, and is to be

distributed to the 21 most sparsely populated

areas of the country. “Over recent months we

have worked to understand the additional

impacts of the policy upon remote and fragile

communities in rural areas. The £5m of new

discretionary housing payment funding is in

recognition of this,” Lord Freud wrote.

A nice little earner

Parking finesSome councils are making huge surpluses

from parking fines, according to the RAC Foundation. During 2011/12 the combined

amount of cash left over after money was

spent on parking services, filling potholes,

funding park and ride schemes, street lights

and road improvements, was £412m – a

£54m increase over the previous financial

year, said the Foundation. This year they are

forecast to make a surplus of £635m.

RAC Foundation director Professor Stephen Glaister said, “For many local

authorities, parking charges are a nice

lit tle earner, especially in London... Not all

authorities make big sums. Several run a

current account deficit and indeed of those

with surpluses, many will see the money

vanish when capital expenditure is taken

into account. But the bottom line is that

hundreds of millions of pounds are being

contributed annually to council coffers

through parking charges.”

The media, of course, played up the

emphasis of the level of ‘profit ’ made by local

authorities and, in particular, the amount made

by some individual councils, but interestingly

the report identifies that many councils have

to subsidise parking services, as the cost is

not covered by charges.

There is also £10m of in year transitional

funding for councils administering the changes

to housing benefit. Local government advisers

to the DWP have been pressing for months for

information on how councils will be funded for

the work they are carrying out as part of the

government’s welfare reform programme.

Proposed cuts in Revenue Support GrantThe DCLG’s latest consultation paper,

published in late July, proposes more cuts in

Revenue Support Grant – just in case there

is a higher call on the business rates safety net over the next three years.

It proposes increasing the 2014/15 cut by

an additional £95m, to £120m, and making a

further £50m cut in 2015/16. Coming on top

of the additional 1% cut in 2014/15 and the

extra 10% recently announced for 2015/16,

this is an unwelcome imposition that will

create even more pain on local economies

as more jobs and services are cut – this at a

time when according to CIPFA, local authority

spending in England has already fallen back

close to 2007/08 levels this year.

DCLG’s ten week consultation period gives

councils an opportunity to express their

views, although as is often the case, the

questions appear to have been designed to

limit the visibility of alternative options in any

assessment of the responses.

Alongside a number of other holdbacks,

including the additional £95m to be top-

sliced for safety net payments, the Local

Government Association has calculated that

the repackaging of local government budgets

leaves authorities facing a 15% cut in the

2015/16 spending round, instead of the 10%

which the Chancellor announced.

“The Department for Work and Pensions has set aside the additional funding as part of its ‘rolling review’ of its welfare reform policies, according to a letter from welfare reform minister Lord Freud.”

Whether it’s additional income or reduced grants, it’s never good news for local authorities, says Pat Doherty

Pat Doherty FIRRV CPFA is an independent

consultant and a Past President of the

IRRV. If you wish to comment on anything in

the article please email him at

pkd@pkdconsultancy.co.uk

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Take that step forward today

Julie Holden IRRV (Hons) MCMI CMg is Town

Clerk with East Grinstead Town Council, and a

Past President of the IRRV34

INSI

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.irrv

.net

Viewpoint

look after the children. Yes, they are entitled

to it, but when it becomes a life choice that

you can choose not to work because you can

manage a life on benefits, this is the wrong

approach to welfare, and therefore must be

changed. Benefits should be for a ‘stop gap’,

to tide over on the absolute basics until new

employment is found. I was brought up to

pay my way – I don’t want a medal, nor do I

want a pat on the back, but I do feel aggrieved

when I am asked why I deserve to live as I do

and why should others not be entitled to be

provided with the same standard! Well, the

answer, put simply, is that I have made life

choices, to work, to have a family the size that I can provide for, and not to rely on

someone else paying for this!

What would happen if we all decided to

do this? Sadly it was a real life choice that

was becoming possible under the welfare

system. We have heard of second and third

What do the benefit cap and Prince Charles have in common? We British seem to at times have very

opposing views without realising it! I note

that the headlines on the news as I drive to

work this morning carry two main stories:

• the benefit cap of £26,000 being introduced

and

• whether Prince Charles pays enough tax, as

the Duchy of Cornwall is deemed a small

private estate and not a corporation.

The benefit item (and I hardly need to

explain how it works and what this is all about)

was accompanied with the concerns of the

voluntary sector bodies that this was unfair

and would result in great hardship for the

largest of families, and of course the rents

that could be afforded would be in areas of

greatest deprivation. Of course, what it fails

to accept is demand and supply, if all of

these families are forced to leave the area

where they currently live in search of work.

Well, that is clearly one of the aims (seeking

work), but also if this leaves a dearth of empty

properties, rents will be forced down – which

means that the benefit bill should also reduce,

or at least rents can be managed and there

would be no need to move.

I would not wish a life on benefit for any

period of time for anyone, and clearly the

new regime is to encourage movement back in to work as soon as possible. No-one said

this was easy, and I am sure that many of us

know people who have lost jobs, but then

with determination have found new ones

after time. It is the ‘life choice’ of choosing not to work and yet continuing to live on the

payments met by those who work through

their tax paid that is abhorrent. It is this culture

(albeit a small but significant figure) that is

necessitating this change.

Having worked in benefits at the front line

for twenty plus years, I do know that there are

a small but significant minority that have large

families and seek larger housing (because they

are entitled to it), claiming the new benefits to

generations of benefit reliance where there

is a culture of non-work. We have heard

of students who complete university with no intention of paying back the student loan

by working part time or not working at all. It is

as I say a small minority, but as long as the

possibility to play the system and live a life

as a ‘taker ’ and not a contributor exists, then

change must come. I found it maddening that

the volunteer groups were seemingly sticking

up for this right to choose, by advocating the

status quo.

So what about Prince Charles? He clearly

does pay income tax (and I must assume

this is at the high end). The fact that he has

an estate that produces goods has to be

considered in line with all businesses run in

the same way – surely if we sell eggs and veg

that we grow on our own ‘estate’ no matter

how small, we would declare this as income

and pay income tax appropriately? But we

would feel most hard done by if we were

asked to pay corporation tax. The scale

may be dif ferent, but surely the principle is

the same? I never thought I would be sticking

up for Prince Charles, who clearly lives a life

far removed from those of normal Britons,

but it is the principle! He pays his dues,

he pays his legal taxes (unlike some other

corporations that seem to find marvellous

ways to get the tax breaks!), and so pays

in for the delivery of welfare and other

government funded services.

I have to say that on the balance of the

two articles, the one where I see an attempt

to make the system fairer for all taxpayers far

outweighs the other, simply in that a journalist

believes that members of the Royal Family

should pay more than another person would in

the same position.

“He pays his dues, he pays his legal taxes (unlike some other corporations that seem to find marvellous ways to get the tax breaks!), and so pays in for the delivery of welfare and other government funded services.”

...Julie Holden is here to explain

...Julie Holden is here to explain

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