Administering Business Rates and Council Tax Appeals. Forward Plan for the Valuation Tribunal Service

Transcription

1 Administering Business Rates and Council Tax Appeals Forward Plan for the Valuation Tribunal Service

2 Contents FOREWORD BY THE CHAIRMAN... 3 INTRODUCTION BY THE CHIEF EXECUTIVE... 4 WHAT WE DO AND WHY... 5 IN STRIVING TO ACHIEVE OUR AIM, WE ARE EVER MINDFUL OF THE FOLLOWING PRINCIPLES:. 5 OUR VALUES AND WHAT THEY MEAN... 5 STAFFING... 6 OUR STRATEGIC OBJECTIVES AND WHAT THEY MEAN... 7 KEY PERFORMANCE INDICATORS... 8 USER SURVEY... 9 DELIVERING FINANCIAL EFFICIENCY... 9 WORKLOAD GOVERNANCE ARRANGEMENTS TO SUPPORT THE BUSINESS PLAN DELIVERING AND REPORTING ON THE BUSINESS PLAN CORPORATE PLAN WHAT ARE OUR ASPIRATIONS MOVING FORWARD OUR ASPIRATIONS EXPANDED (THE FIVE A S ) FUTURE WORKLOAD... 16

3 Foreword by the Chairman Each year, the preparation of the business plan focuses our attention of what is changing in the local property tax arena and how the VTS needs to meet the new challenges of such changes, as well as meeting the ongoing expectations about efficient operation and enhanced quality of experience for parties to appeal hearings. At present, we are anticipating the changes necessary for handling changed appeal processes when the new Rating List comes into force in April 2017, whilst remaining mindful of the need to deal effectively with the surge of appeals that have been lodged with us on the 2010 Rating List. The prospective changes in appeal process necessitate changes to our technology, as well as giving rise to training needs for both staff and VTE members. The year ahead will require the VTS to be responsive and agile, so that we may continue to strive to meet our aim of providing an effective and efficient service to users and stakeholders. Anne Galbraith CBE Chairman Valuation Tribunal Service

4 Introduction by the Chief Executive As a statutory body we remain focussed on ways in which we can meet the expectations of our tribunal users and stakeholders, and continue to do so against a backdrop of the increasing and challenging requirement to deliver rising performance with reduced budget and resources. We are currently awaiting the outcome of the Triennial Review which commenced in We have no doubt that any findings that will follow may bring further challenges as well as other opportunities for us as an organisation. Our day-to-day business continues to be in facilitating the resolution of appeals. Our focus this year will be very much on preparatory work in readiness for the impact of the revaluation of business rates that will take place on 1 April 2017, and building in any new processes that may fall out of legislative changes following the Government s recent consultation on Check, Challenge and Appeal. This will no doubt present challenges as we review our current IT platform and adopt new technological solutions, so that we may enhance our responsiveness in handling the impact of such changes. As an organisation we will rise as always to the challenges that are presented and we are looking forward to another successful year of operation. Tony Masella Chief Executive and Chief Operating Officer

5 What we do and why Our organisational aim is to provide the fairest, most effective and efficient service we can to those who appeal their council tax or business rates. As a statutory independent, service delivery organisation since 1 April 2004, we deliver a range of services to the Valuation Tribunal for England (VTE), which acquired its jurisdiction on 1 October 2009, in hearing disputes between the Valuation Office Agency (VOA) and ratepayers and/or council tax payers. Broadly, the VTS arranges hearing days (about 1,600 in ), sets up Tribunal panels, case manages lists and appeals, provides general assistance to appellants and their representatives and issues statutory notices. We also provide the specialist clerks to advise lay panels at hearings on practice, procedure and any legal issues. These members of staff are also responsible for drafting the decisions arrived at by the panels, for their approval, and for disseminating the reasoned decisions to the relevant parties. Following the Public Bodies Reform programme, we are currently subject to a Triennial Review which commenced in This review will determine whether the service provided by both the Valuation Tribunal Service (VTS) and Valuation Tribunal for England (VTE) is still required and, if so, whether these organisations and the current model for service provision remain the most suitable. The outcome of this review will be known shortly and in the meantime we will continue to exercise the knowledge and experience built up over 66 years in local property taxation matters so that we may demonstrate value to our users in providing a free, informal route for disputes to be resolved. In striving to achieve our aim, we are ever mindful of the following principles: supporting the VTE in providing independent, open, fair and impartial hearings for business rates and council tax and being open and transparent in doing so; focussing on our customer needs by keeping people fully informed and enabling them to resolve their disputes as quickly as possible; adopting high standards of behaviour and always striving to improve, by listening to, responding to and learning from user feedback; using consistent, proportionate, cost effective procedures that give value for taxpayers money; working in partnership with those of our stakeholders who operate in the business rating and council tax arena and with our sponsor Department in delivering Ministers priorities; and Utilising IT innovations where possible. Our values and what they mean People focussed we value and promote positive relationships internally and externally, and are responsive to the needs of our users in taking care to get things right.

6 Trustworthy we act with integrity, honesty, impartiality and openness in exercising our statutory functions. Professional we deliver on our commitments by applying high levels of expertise, conduct and personal responsibility, developing our skill base and seeking to earn a good reputation with users and stakeholders. Innovative we actively embrace change and bring new ideas to deliver excellent services for our users, demonstrating agility and flexibility in our approach. Staffing The VTS staff includes specialist, administrative and technical staff, and includes a number of home-based staff who work peripatetically to support the VTE members, by providing technical and procedural advice at hearings. VTS Organisational Chart CEO PA Receptionist Director of Finance & Information Systems Director of Operations & Development Head of HR & Training Registrar IT Manager Finance Manager Training Manager Corporate Services Manager Corporate Services Assistant Service Delivery Manager Business Development Officer (vacant) IT Support Finance Officers (x2) HR Officers (x2) Team Leader (Service Delivery) (x2) Team Leader (Planning) (x2) Office Manager Finance Assistant HR & Training Assistant Homeworkers PTO (x17) PCMOs (London) (x7) PCMOs (Doncaster) (x7) Administrative Staff (London) x10 Administrative Staff (Doncaster) x11 We expect our managers to be proactive and show leadership in helping to develop the organisation by: actively and regularly engaging with staff, explaining our vision and objectives, targets and standards of expected performance and dealing with any poor performance promptly; demonstrating clear decision making; measuring performance and outputs to achieve agreed outcomes; identifying training needs and developing staff; and Championing our Customer Charter aims. The VTS operates from two administrative centres (Doncaster and London) each of which includes hearing rooms. We also use approximately 70 other hearing venues throughout England so that we continue to provide a local service for unrepresented tribunal users.

7 Our strategic objectives and what they mean Strategic Objectives How we will deliver our strategic objectives When? To support the Valuation Tribunal for England in the administration of a fair, efficient and accessible appeals system by providing guidance and supporting the recruitment, induction and integration of new members. To drive continuous improvement of performance and efficiency across all aspects of our organisation. Achieve an enhanced process working with the Valuation Tribunal for England, which solicits a greater indication of cases actually requiring a hearing and avoiding nugatory administration in the case managing and hearing of appeals. Assess the potential for a paperless hearing environment, ensuring wherever possible that we maximise the efficiencies resulting from increased electronic appeal submission and management. Work with the new President of the VTE to review the current practice statements and current processes to achieve a much leaner journey for tribunal users, recognising that VTE decisions may have major financial consequences on businesses and home owners. Refresh our website and its contents to provide user-friendly advice and information to our users. Revamp our performance appraisal system for staff to remove bureaucratic processes yet achieve greater engagement from individuals. By end of Quarter 3 By end of Quarter 4 By end of Quarter 3 By end of Quarter 1 By end of Quarter 2 Deliver an appropriate IT platform for appeals management that meets the government s digital services programme. By end of Quarter 4 To enhance the quality and consistency of our service to all stakeholders. Revamp our customer survey to better understand tribunal user s appeal journey. Achieve Plain English Campaign accreditation in the guidance we offer as an administration. By end of Quarter 2 By end of Quarter 4

8 To work in partnership with our sponsor Department to support their policy development. Focus on Ministers aims in delivering NDR Appeal Reform. Agree expectations regarding appropriate listing volumes. Be responsive to funding demands. By end of Quarter 3 By end of Quarter 1 By end of Quarter 4 To build capacity and capability in our staff, learning from their experience and from their feedback. Introduce training grades to encourage staff progression between roles. Establish minimum standards to be attained by staff and maintained by CPD. Develop new role descriptions to encourage greater flexibility in staff. By end of Quarter 1 By end of Quarter 1 By end of Quarter 2 To operate with financial and organisational initiative and efficiency. Retender contracts, specifically IT contracts, in order to deliver year on year cost savings. Develop more efficient financial and budgetary processes which best meet user requirements. Review ways of reducing costs without dropping organisational flexibility and responsiveness in meeting targets. By end of Quarter 4 By end of Quarter 3 By end of Quarter 2 Key Performance Indicators We have a number of internal and external Key Performance Indicators (KPIs) used routinely by the Board and the Executive Management Team to monitor our performance against our strategic objectives. We regularly review the effectiveness of KPIs to us as an organisation and similarly look at ways that we may present the available information. Our current KPIs include: List 85% of council tax appeals to a hearing date that is within four months of receipt. Issue 87% of decisions within one calendar month of the hearing. Deal administratively with 80% 0f reinstatement requests within six weeks of receipt. 77% of tribunal lists result in two or more cases being heard on the day. Reduce external venue hearings costs by 10% on last year s expenditure. Sickness absence below public sector average.

9 We report on our achievement towards these KPIs in our Annual Report and Accounts. This year, we will be considering the addition of further KPIs that will allow us to look further at our service, such as key customer/stakeholder satisfaction, organisational health and reputation. User Survey We continue to use feedback from our user survey to make improvements in the service we provide. Feedback from our current rolling customer survey allows us to focus on what they consider as being important. The graphic below shows what our users consider should be reviewed, maintained or improved. Delivering Financial Efficiency The VTS receives grant-in-aid funding from the Department of Communities and Local Government (DCLG) for its activities. Over the last few years we have consistently delivered financial efficiencies and succeeded in achieving annual expenditure under our allocated budget. With approval from DCLG, we have been able to utilise available funds by the reduction of pension liabilities which benefits the overall financial position of the organisation. We have also now consolidated our membership of numerous local government pension schemes into a single one, administered by the London Pension Fund Authority. This is expected to provide further efficiency in the future administration of our pensions. The progress we have made in delivering year on year cost savings is visible and our sponsoring department recognises the current plans we have in place to address the financial challenges we face. The VTS has provided clear evidence of the risks to customer satisfaction levels from reduced resources, which has resulted in a 4% increase in the budget allocation for pay for 2016/17. In line with our plans to deliver operational efficiencies the VTS considers that the overall spending review budget reduction of 18% will provide the financial resources required for us to deliver this plan.

10 In addition, DCLG has set aside a total of 1.1m of capital funding for 2016/17, which is subject to business case approval, in support of our plans for new IT systems and infrastructure, of which 320k Capital and 102k Resource has already been approved. The table below gives a breakdown of our spending review settlement as indicative budgets moving forward k k k k Pay 3,828 3,640 3,449 3,254 Non-Pay 3,264 3,201 3,138 3,073 Non-Cash LT Provision Total 8,162 7,941 7,536 7,227 Capital 1, Total 9,262 8,441 7,636 7,327 Acknowledging that the majority of our non-pay expenditure is direct contracted costs we will continue the work undertaken during 2015 to retender contracts via the Crown Commercial Frameworks which has already delivered annual savings in excess of 100k. It is expected to increase those savings as a result of new IT service contracts to be procured during 2016/17. Employee Costs 7.10% 4.30% 3% 3% Finance, HR & Professional Services Board & Corporate 9.30% 12.20% 52.40% IT Estate, Telecomms & Post VTE 2.90% 5.50% Projects Business Development Depreciation

11 We recognise that these continue to be challenging financial times for the public sector and that restraint and sensitivity in using public money is a key objective and we will continue to work with our DCLG colleagues to ensure that we comply with the requirements of our Framework Document. Delivering value for money services remains a key driver for us. During we will continue to fulfil our statutory duties in relation to key stakeholders, in particular the VTE; judicial requirements have to be managed through the efficient and effective use of resources. We will focus our efforts on operating efficiently and cost effectively across all areas of the service and to achieve that end we are streamlining our financial procedures by taking a customer focused end to end view of current processes and procedures. In 2016/17 and throughout the Spending Review period, the organisation is committed to replicating the financial efficiencies it has achieved since ,500 9,000 8,500 8,000 7,500 7, Workload Our workload comprises a number of appeal types all connected with local property taxes. Business rates appeals constitute our biggest workload. We achieved a target of clearing 94% of appeals lodged before 30 September 2013 by July A recent legislative change limiting the time for making proposals on the 2010 Rating List, requiring them to be made before 31 March 2015, has meant that we saw a significant surge in the receipt of business rate appeals post April 2015.

12 In this financial year we are committing to listing 150,000 non-domestic (business rate) appeals and the table below sets out how we intend to this on a monthly basis. This table also shows our assumption on receipts and clearances of such appeals during the same financial year. Listed (000's) Cleared (000's) Received (000's) Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total As a demand led service, the successful resolution of appeals requires the active participation of the parties. Whilst we will look to resource the maximum number of cases listed for hearings, the willingness of the parties to engage in the process is paramount to the resolutions that can be achieved. Below is a graphical illustration of our assumptions. Preparations for appeals on the 2017 Rating List are ongoing, with a new rating list coming into force on 1 April 2017 that will involve the revaluation of all nondomestic properties reflecting the economic environment based as at 1 April 2015 (the Antecedent Valuation Date ( AVD )). We are awaiting the Government s response to its recent consultation, Check, Challenge and Appeal, which will end the current automatic transformation of a proposal challenging an assessment into

13 an appeal within a three-month period. The Government consulted on a proposal for introduction of a three-stage process, with appeals only being made once the check and challenge stages with the VOA have been undertaken. Governance arrangements to support the Business Plan All of our activities are underpinned by governance arrangements which support the delivery of our services. These include: the statutory framework set out in the Local Government Act 2003; Board reviews of performance and achievement against this Business Plan; reporting to DCLG in line with the Framework Document and complying with government policy and sponsoring department rules; the Board s Finance and Audit & Risk Assurance Committees, which exercise detailed oversight in their relevant areas; Standing Orders, Standing Financial Instructions and Procurement Policy, which are reviewed and updated annually; Our risk management processes which are overseen by both the Audit & Risk Assurance Committee and the Board. The risk management process provides a structured approach for managing risk, with risk registers maintained at project, operational and strategic level; a business continuity plan which has been formulated with significant staff engagement and which is seen as a living document, regularly reviewed and tested; our information governance, through a set of policies that support effective and secure data handling, implemented by staff trained to ensure they handle data, especially personal data, appropriately; the Programme Management Group, which monitors all change programmes and projects in terms of options, resources and risks to ensure successful delivery and benefits realisation, and a Change Approvals Board which considers and controls all requests for IT and business process changes. Delivering and reporting on the Business Plan The Business Plan is published on our website and on the staff intranet. VTS budget holders bid for budgets for activities designed to deliver the objectives outlined in the Plan and to minimise identified risks. These objectives provide the basis for staff personal development objectives. The delivery of this Plan will be monitored quarterly at three levels: the delivery of targets and achievements against the Plan will be monitored by the Board, which may amend the Plan to reflect new or revised Departmental requirements that emerge during the year; the Chief Executive will monitor the achievements of the Plan with his executive team; and we will share our progress and achievements with our sponsoring department through liaison meetings and regular Accounting Officer meetings.

14 Corporate Plan The appointment of a new President of the VTE is expected to take place this year. With this new appointment we hope to continue to work in very close partnership with the VTE in assisting the Tribunal to have regards to the discharge of its statutory function 1 regarding: dealing with appeals in ways which are proportionate to the importance of the appeal, complexity of the issues and, the anticipated costs and resources of the parties; avoiding unnecessary formality and seeking flexibility in the proceedings; ensuring, so far as practicable, that the parties are able to participate fully in the proceedings; using any special expertise effectively; and avoiding delay, so far as compatible with proper consideration of the issues. This will serve to provide a greater united focus on improving consistency and enhancing the user experience, by communicating with and listening to our stakeholders and, at the same time, delivering exceptional value for money in the service we provide within the public sector environment. What are our aspirations moving forward The financial and organisational challenges facing public sector are unlikely to diminish and we remain focussed in considering ways in which our statutory functions can continue to be delivered effectively. The outcome of the Triennial Review may well propose alternative models of provision and provide a direction of travel. Our future plans and aspirations are therefore directed to the following questions, which we have branded as the five A s : Aspire - where do we want to go? Assess how ready are we to get there? Architect what do we need to do to get there? Act how do we manage the journey? Advance how do we keep moving forward? Our aspirations expanded (the five A s ) Where do we want to go? To be classified as a high performing and trusted arms-length body with a strong track record for informing and delivering on government policy. To be responsive to user needs, ensuring high service delivery and satisfaction levels across all appeal jurisdictions. To embrace new technology with a view to enhancing user experience and maximising the benefits of digital 1 The Valuation Tribunal for England (Council Tax rating Appeals) (Procedure) Regulations 2009

15 transformation. To provide value for money by maintaining a lean organisational structure that is flexible and responsive to current and future workload challenges. How ready are we to get there? What do we need to do to get there? How do we manage the journey? How do we keep moving? To embark on a programme that which will result in the introduction of a new appeals management system ready for (dependent on the outcomes from the current NDR appeal reform consultation). We will look at future IT enhancement, estate, rationalisation and staff optimisation. Preparatory work and business analysis has already been carried out in these areas. We will adopt Managing Successful Programme (MSP) principles in a way that is proportionate to us, and represents proven good practice to successfully deliver change. We will establish a clear and effective programme organisation structure with defined roles, clear accountability and reporting arrangements. We will continue to engage stakeholders, define the outcomes and benefits and create a blueprint for change which will be taken forward and managed as a series of related business cases.

16 Future Workload We expect the appeal activity post to settle as parties start to focus on the start of a new 2017 Rating List and the impact of such appeals, a process that will inevitably follow a new regulatory framework following NDR Reform. Our expectation is that we will see an influx of protective appeals in March 2017 against the 2010 Rating List prior to its closure on 1 April The graph below shows our expectations, based from past experience, of what may potentially be outstanding during the financial year on a monthly basis. This will put us in a good position for when the new rating list appeals emerge. The graph below shows our estimates in meeting 150,000 listings broken down as a monthly proportion against our projection of overall clearances.