Purpose

Background/Reason

The Council periodically reviews its recovery processes and associated costs to ensure they remain reflective of current operational practices and the activities undertaken throughout the recovery cycle.

Over time, changes have been made to the Council's Council Tax and Non-Domestic Rate recovery processes, including the timing, nature and sequencing of actions undertaken during the recovery cycle. As a result, officer time, administrative activity and supporting resources are now utilised differently across the various stages of recovery than when the existing recovery cost structure was established.

A comprehensive review has therefore been undertaken of the activities, resources and costs associated with the recovery process, including the issue of summonses and the progression of cases through to the Liability Order stage. This review included a reassessment of the costs incurred by the Council in undertaking recovery activity and the allocation of those costs across the various stages of the recovery process.

The review concluded that the existing overall level of recovery costs remains appropriate at £85 and continues to reflect the total costs incurred by the Council in undertaking recovery activity. However, the review identified an opportunity to revise the allocation of those costs between the summons and Liability Order stages to better reflect the current structure of recovery activity and the distribution of resources across the recovery process.

Any Options Considered

Option 1: Retain the existing recovery cost structure and allocation

Continue to recover costs using the existing cost assessment and allocation methodology.

Advantages

• No changes required to existing processes or systems.
• Maintains current arrangements.

Disadvantages

• Does not reflect the findings of the review of current recovery activities, costs and resource deployment.
• Does not reflect changes to recovery processes and the distribution of work across the recovery cycle.
• Does not fully align the allocation of costs with the activities undertaken at each stage of the recovery process.

Option 2: Adopt the findings of the recovery cost review and revise the allocation of costs between the summons and Liability Order stages (Recommended)

Implement the outcomes of the review by retaining the established overall level of recovery costs whilst revising the allocation of those costs across the various stages of the recovery process.

Advantages

• Reflects current operational practices and recovery activity.
• Ensures recovery costs are supported by a current review of activities and associated costs.
• Provides a clear link between recovery activity and the stage at which costs are incurred.
• Maintains the overall level of recovery costs identified through the review.

Disadvantages

• Requires amendments to procedures and system configuration.

The Decision Taken

A review of the Council's Council Tax and Non-Domestic Rate recovery activities, associated costs and recovery processes has been completed.

Having considered the findings of the review and the revised ‘Statement of Recovery Costs’, it is approved that the overall level of recovery costs shall remain unchanged at £85. However, the allocation of those costs will be revised so that recovery costs are attributed across both the summons stage and the Liability Order stage of the recovery process in the amount of £70 and £15 respectively. This revised allocation reflects the current structure of recovery activity, the actions undertaken at each stage of the recovery process and the resources deployed in progressing cases through recovery.

The revised recovery cost structure and allocation methodology will apply from the 2026/27 financial year and will be incorporated into the Council's recovery procedures and system configuration.

Decision

A review of the Council's Council Tax and Non-Domestic Rate recovery activities, associated costs and recovery processes has been completed.

Having considered the findings of the review and the revised ‘Statement of Recovery Costs’, it is approved that the overall level of recovery costs shall remain unchanged at £85. However, the allocation of those costs will be revised so that recovery costs are attributed across both the summons stage and the Liability Order stage of the recovery process in the amount of £70 and £15 respectively. This revised allocation reflects the current structure of recovery activity, the actions undertaken at each stage of the recovery process and the resources deployed in progressing cases through recovery.
The revised recovery cost structure and allocation methodology will apply from the 2026/27 financial year and will be incorporated into the Council's recovery procedures and system configuration.

Alternative options considered

Option 1: Retain the existing recovery cost structure and allocation
Continue to recover costs using the existing cost assessment and allocation methodology.
Advantages
• No changes required to existing processes or systems.
• Maintains current arrangements.
Disadvantages
• Does not reflect the findings of the review of current recovery activities, costs and resource deployment.
• Does not reflect changes to recovery processes and the distribution of work across the recovery cycle.
• Does not fully align the allocation of costs with the activities undertaken at each stage of the recovery process
.
Option 2: Adopt the findings of the recovery cost review and revise the allocation of costs between the summons and Liability Order stages (Recommended)
Implement the outcomes of the review by retaining the established overall level of recovery costs whilst revising the allocation of those costs across the various stages of the recovery process.
Advantages
• Reflects current operational practices and recovery activity.
• Ensures recovery costs are supported by a current review of activities and associated costs.
• Provides a clear link between recovery activity and the stage at which costs are incurred.
• Maintains the overall level of recovery costs identified through the review.
Disadvantages
• Requires amendments to procedures and system configuration.