role of the authority and valuation tribunal in council...

Institute of Revenues Rating and Valuation www.irrv.org.uk [email protected]

Role of the Authority and Valuation Tribunal in Council

Tax Reduction

Louise Freeth FIRRV Change and Service Development Manager - Liberata


Appeals……….! Tea/Coffee early?


Outline

•  Expectations

•  Reality

•  VT Responsibilities

•  LA Responsibilities

•  Forthcoming changes

•  A complex issue

•  Judicial Challenge

•  The Future


The Local Government Finance Act 2012: • Royal assent 31 October 2012

• Sch. 4 – Amendments relating to CT reduction scheme

• Insertion of Schedule 1A into LGFA 1992

• Matters to be included in schemes – 2 (6) A scheme must state the procedure by which a person can make an appeal under section 16 against any decision of the authority which affects – a) the person’s entitlement to a reduction under the scheme, or

b) the amount of any reduction to which the person is entitled

The Legislation


So…….. •  Initial estimates of appeals worrying

•  Dedicated team recruited and trained

•  In reality – much fewer. English statistics:

•  Wales : 60 appeals since 1st April 2013 of which 20 settled without a hearing and 20 heard.

Council Tax Reduction Appeals 1 April 2015 to 31 August 2015

Tribunal Area B/F Received Withdrawn Decided Total Cleared C/F

1 North West 63 57 23 16 39 812 North 29 29 9 1 10 483 Yorkshire 43 39 16 4 20 624 East Midlands 30 22 7 11 18 345 West Midlands 35 30 13 6 19 466 East England 57 31 8 3 11 777 South East 52 39 13 10 23 688 South West 30 20 3 0 3 479 London 97 87 23 20 43 141

436 354 115 71 186 604


Reasons for reduced numbers.

•  HB appeal volumes remain stable – 11,492 received in 2014/15

•  HB appeal decisions implemented across CTR •  Is that sustainable? •  Growing differences

•  Dislike of the process – appealing to the VT directly ? •  DWP direct lodgement of appeals with Her Majesty’s Court and

Tribunal Service (HMCTS) •  HB not included

•  Desire to appeal HB but not CTR !


Valid appeal only if: •  Notified by LA that grievance not well founded by remain aggrieved •  Notified steps taken to correct grievance but still aggrieved •  2 months have elapsed since notice served on LA

•  Must be reconsidered by LA initially

•  The issue of publication and precedent.


Standard Directions: • Duty to provide bundle, at least four weeks before the hearing:

–  A copy of the notification to the appellant on CTR –  A copy of the appellant’s notice to the LA under S16(4)(c) –  A copy of the LA response (if any) to that notice –  A copy of relevant extracts from the appellant’s CTR applications –  Copies of any other relevant communications between the parties –  A summary of the LA response to the appeal including references to the relevant

legislation, case law and CTR scheme

• Numbered and with an index

• Barred if fail to provide and appeal succeeds by default

• Our Survey – a bit of a mixed bag! –  HB appeals staff –  Revenues staff –  Generic staff –  Are staff sufficiently aware of procedures?

LA Actions – Practice Statement A11


•  Notice of hearing issued

•  2 lay panel members or 1 lay member and 1 FTT Judge if concerns: –  Assessment of income –  Assessment of capital –  Right of Residence –  Any other novel, important, difficult or contentious point of law

•  Decision at time of oral hearing only if FTT judge

Currently.


Revised Practice Statement – A11

•  Effective 1st November 2015

•  Move away from using FTT Judges as default

•  Only considered now where novel, important, difficult or contentious point of law

•  Parties may advise VT if appropriate

•  Decision post hearing


Wales and Scotland

Valuation Tribunal (Wales) • Authorities linked to different area offices • Tribunals consist only of lay members Council Tax Reduction Review Panel • Single office •  supported by Scottish Tribunals Service •  Tribunals consist only of FTT Judges • We have received relatively few applications to date and the majority of decisions have involved invalidity or official error. This has arisen as a result of there being no provision within the Council Tax Reduction (Scotland) Regulations 2012 for the concept of official error being applicable to liability to pay Council Tax. This is in stark contrast to how such matters are resolved in the Council Tax Benefit and Housing Benefit regimes.


“Overpayments”

DCLG’s view: Q: If due to an error of administration we give a person too much reduction there are no rules on whether we reclaim that over payment? Granting a reduction in error is, in effect, an under-collection of council tax. Under the council tax system a billing authority can make decisions on a case by case basis on the recovery of council tax owed. In regard to dealing with changes in circumstance of a person in receipt of a reduction under a scheme, the existing capability within the council tax system for dealing with over and under payments will apply. An over- and under-allowance of a reduction is equivalent to an under- or over-payment of council tax


Not quite that simple!

•  Account for 70% of outstanding appeals

•  Immediate Past President’s approach: –  “Underpayments” of Council Tax –  Determine the root cause of the appeal

•  Recoverability due to an error made by the LA •  Calculation

–  Check the local scheme –  Strike out if regarding recoverability due to error –  Recommend S13A (1)(c ) –  Could end up back at VT, but under correct legislation

•  Consider using powers under S13A(1)(c ) automatically

•  October/November – test cases


Judicial challenges

Haringey • The issue of consultation

Havering • Council not directed to the equalities aspect of their decision (Public Sector equalities Duty) • Whether the Scheme was in itself substantively discriminatory on the grounds of disability and age • Should it be entertained at all since discretionary relief was granted and lateness of challenge

• Claimant clarified at the hearing not seeking a quashing order of the Scheme, simply declarations that the Scheme was unlawful.

• Judgment reserved until the end of October/beginning of November


Holborn and St Pancras (Camden)

• Liability order granted August 14 • Just a few months prior to taxpayer reaching pensionable age • In receipt of maximum CTR (91.5%) • Liability order granted in respect of sums due and not paid • Permission for magistrates to state their case – they declined • Applied for JR – magistrates are respondents, LB Camden interested party • Mentioned CTR as unhappy previously received 100% assistance, but a “by-product” • Hearing due 8th October


The Future •  On-going annual challenges

•  Moving further away from HB •  Impact of on-going welfare reforms •  DCLG intend to amend Prescribed Regs in line with HB

•  Ensure the VT have a copy of your CTR scheme

•  Pick up Practice Statements from website

•  Check contact details are correct •  Directions & Decisions go to e-mail address provided for CTR

•  3 year review - LGFA 2012 s9: •  A review of all council tax reduction schemes; •  Effectiveness, efficiency, fairness and transparency and impact on the localism agenda; •  Make recommendations as to whether such schemes should be brought within universal

credit; •  Shall take place within three years after this Act comes into effect


Should CTR stay or go? • How might a merger with UC work? • What would the taper rate look like? • How would work incentives be affected? Key finding: “The failure to integrate Council Tax Support undermines the logic of a single working-age benefit system because people will have to claim for this separately. Integrating CTS inside UC would, of course, have cost implications. But savings are likely to be made by centralising its administration, with local authorities currently spending around £800 million delivering CTS. Our view is that CTS assessment should occur within UC, with the precise taper rate determined by the administrative savings released by this move”. Complication – pensioners!


Work and Pensions Committee - Local Safety Net Enquiry •  Call for evidence by 30th October

•  Looking at discretionary welfare, housing (DHPs) and Council Tax assistance schemes •  sufficiency; •  accessibility; •  allocation criteria and appeals; and •  how local policies are drawn up and monitored.

•  Interaction between the national benefits system and locally-run schemes

•  Variations between different areas - the type and level of support available

•  Eligibility criteria applied by different local authorities.

•  “Localism in action" or a "postcode lottery“? •  Highlight good practice; identify where gaps exist; and suggest remedies.


DCLG – currently preparing

•  Ministers have selected a Chair.

•  More details awaited.

•  The review will be completed by March 2016.


Thank you! Contact details: [email protected]

Valuation Tribunal User Group - IRRV representative

Conferences and Meetings: [email protected] or phone 020 7691 8987

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