Agenda item

Nigel Howcutt said there are 2 main elements to this report and this is the overall financing resource is direct to a performance and KPI management and then also the operational risk register for the service.

They key aspects to this report are there are 5 red KPI’s at present, down from 6 in the previous month, He explained these correlated with Covid.

Nigel Howcutt went through each KPI and welcomed questions from the committee

Councillor Tindall referred to RBF01 page 29 and then to page 43 FRR02 delays and errors in the process of benefit claims he asked if these were the same subject.

Nigel Howcutt confirmed that FRR02 is a larger subject and not just housing benefit, and it includes council tax support and other areas.

Councillor Tindall referred to an impact that’s said, Customers could suffer hardship as a result from delays or errors in processing the claim, he asked if there was a way of monitoring this hardship, he said there are a lot of people out there who’s employment is in question and he would not like to feel that we are not doing all everything we can to mitigate the hardship.

Nigel Howcutt responded and said that there are 2 aspects to this, he said in terms of benefits, the only one they administer now is universal credit. He said any existing housing benefit claimants will have been with them for a period of time would be change in circumstance and we’re performing in green in this area so any impact to them would be minimal. He said what the KPI is showing is with new housing benefit claims and they were not achieving the turnaround time they would like as they are predominantly in temporary accommodation and are residents that have been taken off the streets during Covid so they have to claim through DBC. Nigel Howcutt said that DBC are leaders in the turnaround time of updating claims and rarely receive complaints about this and if residents are facing hardship we will often give them information on agencies which can help.

Councillor Adeleke referred to page 29 and the point it mentions council investments and that some of them are returning zero returns. He asked how confident we were moving into the future with the reserve we have with the current Covid situation.

Nigel Howcutt explained that that section refers to the treasury management function and that they invest our cash in a very safe and secure investment agencies, he said these are normally British banks and other local authorities, as a result of interest rates collapsing and the availability of people being able to borrow at a lower rate although investment returns are being driven down. He said he is confident that in the long term that the rates will go up and now that they are more aware of the medium term fiscal impact that they can better plan for the next couple of years, he said he is confident they will get a better rate of return than what they are now but probably not as good as last year prior to the world going into recession. He concluded that the Treasury management team will always guide them on what they can look at in terms of investments and the strategy is always revised on an annual basis which is approved by members.

Councillor Mahmood asked for clarification on money from debtors, he asked if this was monies owed to Dacorum.

Nigel Howcutt confirmed it was.

Councillor Mahmood referred to a point Nigel Howcutt made about collecting commercial rents and how they were working with local businesses, he asked what will happen now as a result of the 2nd lockdown.

Nigel Howcutt confirmed they are waiting for guidance on what they can and cannot do in regards to rules and regulations around collection. He said they will likely liaise with local businesses that are willing and be open to discuss payment and payment plans. He said those that aren’t currently trading or are difficult to do business or furloughed, they would have to wait until the lockdown period has ended to continue those discussions. He said the collection rate over the last month has been far better than expected and this will feed through into quarter 3. He said he expects their commercial property income might be better at P6 however he doesn’t expect it to be positive through November to March because businesses will have run out of money and there doesn’t appear to be any significant government grants coming through, particularity if they are in lockdown or not trading.

Councillor Mahmood asked if they are planning for next year and if there is a plan B for thing such as furlough scheme as he said he can’t see this ending before December. He asked if there a scenario planning if we are using up the reserves.

Nigel Howcutt said that members will have seen the medium term financial strategy that went to cabinet last month and that they would bring back more frequent reporting to members to update that medium term strategy, he said they will do that as part of the budget papers that will come to scrutiny in December and then again in February as it’s a changing picture and they have scenario planning in the models as things will go up and down.

Outcome:

The report was noted.