The Leicestershire Partnership Revenues & Benefits Joint Committee met on Thursday 25 June 2026, where they reviewed the financial performance of the partnership for the 2025/26 financial year, noting an overall underspend. The committee received a report on the performance indicators for the upcoming 2026/27 financial year and noted the proposed schedule of meetings for the same period.

Financial Performance 2025/26

The committee received an update on the partnership's financial performance for the period 1 April 2025 to 31 March 2026. The partnership reported an overall net underspend of £126,808 for the financial year. This underspend was primarily due to employee costs being £170,000 below budget, largely attributed to vacant posts. Conversely, postage costs were £45,000 above budget. The report detailed the year-end reserves position, which totalled £765,748, including earmarked reserves for various projects such as automation, ICT investment, and a forecast underspend from 2025/26 to be used for IT pressures.

Internal Audit Final Report - Council Tax Support & NNDR 2025/2026

The committee reviewed the internal audit final report concerning Council Tax Support (CTS) and Non-Domestic Rates (NNDR) for the 2025/26 period. The audit provided a Substantial Opinion on the design and effectiveness of the control framework, indicating that it is adequate and effective. The report highlighted good practice in areas such as the retention of relevant evidence for CTS claims and the approval of NNDR refunds in accordance with the Delegation of Authority matrix.

However, the audit identified three areas for improvement, all categorised as Low Priority:

• Variance between VOA schedule and CAPITA property records: Differences were noted between the Valuation Office Agency (VOA) schedule and CAPITA's property records on one NNDR database (NWLDC). While management explained these were due to how units were combined or recorded separately and that a manual reconciliation was in place, the report recommended continued prompt updates to CAPITA records to maintain alignment. Management confirmed that the property numbers and valuations now align following post-audit adjustments.
• Lack of regular review and monitoring of discounts, exemptions and reliefs: The audit found that discounts, exemptions, and reliefs were not routinely reviewed across the authorities to confirm their validity. The report recommended implementing a sample-based review, focusing on reliefs where circumstances tend to change more often, such as Small Business Rate Relief (SBRR). Management agreed to consider a risk-based review.
• Absence of documented procedures: The end-to-end processes for CTS, refunds, valuations, and discounts/reliefs were not formally documented. Staff relied heavily on local knowledge. The report recommended formalising and updating internal procedures to ensure consistency and accuracy. Management noted that this process had already commenced and would be aligned with unitary status/LGR (Local Government Reorganisation).

Performance Report - March 2026

The committee received the performance report for March 2026, which provided an overview of the partnership's performance against key indicators. The report indicated that revenues and benefits activity was delivered in line with agreed standards, with demand increasing across partner authorities.

Key performance data included:

• Caseloads: Caseloads for Council Tax dwellings increased by 2% across the partnership, and Non-Domestic Rates (NDR) rated assessments saw a marginal increase. Housing Benefit (HB) and Council Tax Support (CTS) live caseloads also showed some movement.
• Benefits Processing: Processing times for new claims and changes in circumstances were reported to be within or exceeding targets set by the Department for Work and Pensions (DWP). For example, Hinckley & Bosworth Borough Council (HBBC) processed new claims in an average of 15 days, against a target of 15 days, and changes in circumstances in 4 days, against a target of 6 days.
• Council Tax Collection: Final year-end figures for March 2026 indicated that Council Tax collection targets were not achieved across the partnership, although HBBC and North West Leicestershire District Council (NWLDC) were close to their targets. This was attributed to wider national affordability pressures impacting households. The report noted that a manual processing error for Harborough District Council (HDC) on 31 March 2026, involving £110,000 in Council Tax and £343,274 in Non-Domestic Rates, had impacted the reported year-end collection figures.
• Business Rate Collection: Non-Domestic Rates (NDR) collection targets were also not achieved. This was attributed to financial strain on businesses, including high energy costs and increased insolvency levels. The report highlighted specific issues in NWLDC concerning Freeport relief and ongoing cases, and in HBBC regarding a Valuation Office Agency (VOA) split for Gulf Ventures Limited and complexities with Supporting Small Business Relief (SSB26 and SSB23).
• Fraud: The Fraud Team had a successful year, issuing 27 sanctions (25 Administrative Penalties and two Cautions) and identifying fraudulent CTS overpayments totalling £147,702.33.

Performance Indicators 2026-2027

The committee was asked to review the proposed performance indicators for the financial year 1 April 2026 to 31 March 2027. The proposed targets for Council Tax collection were revised downwards to reflect upper quartile performance, acknowledging economic pressures and rising arrears. For Business Rates, targets were also adjusted to remain stretching while considering local factors. The target for processing new claims was set at 16 days, reflecting the increasing complexity of cases. The target for processing changes in circumstances remained at four days, supported by automation.

Schedule of Meetings for 2026/27

The committee noted the proposed schedule of meetings for the 2026/27 civic year. The schedule includes four quarterly meetings, with an Annual Meeting to be held in June, as per the Joint Committee's constitution. Meetings will continue to be held on Thursdays at 3:30 pm and will rotate around the partnership authorities: Harborough District Council, Hinckley & Bosworth Borough Council, and North West Leicestershire District Council.

Forward Plan

The committee noted the forward plan for the Joint Committee for 2026-2027, which outlines key decisions and reports to be considered throughout the year, including year-end performance and financial reports, internal audit reports, and budget setting.