Agenda item

Officers introduced the report which contained information on how the Council is meeting its statutory duty to safeguard public finances by implementing effective arrangements for the prevention and detection of fraud and corruption within the Council and its services.

The Deputy Director of Exchequer and Business Assurance Services noted that the Council took a risk-based approach to fraud in every case, and directed the majority of its resources to the areas at the highest risk; most notably, Housing, Social Care and Revenues.

Members heard that the Counter Fraud Team was on track to meet its target of a 99% Business Rates collection rate and an overall loss prevention target of £2m across Council services, with current savings at the end of Quarter 3 being £1.46m. Officers noted that one key component in the Council’s ability to tackle fraud has been the presence of a Home Office Immigration Enforcement Officer working within the team. This has allowed direct access to Home Office data, which has helped the Council quickly check the immigration status of those applying for Council services where recourse to public funds is required.

Officers noted that one of the best sources of intelligence gathering for the Council remains Councillors, as they are out in the Borough a lot and know their local areas well, so are able to flag up any potential irregularities they see.

The Head of Counter Fraud confirmed that, while the Council did enforce in certain cases, it focuses on using a prevention strategy. Members heard that the Counter Fraud Team were focused on looking at where risk was and verifying information before allocating any resources, as acting after the fact was a lot more expensive. The Committee were informed that 21 Council properties had been recovered by the team to date this year, with another five cases ongoing. Prosecution cases only took place where appropriate; it must be proportionate, reasonable, and necessary to act as a deterrent against further fraud.

Responding to Councillors’ questioning, officers confirmed that generally, recovered properties were usually those that had been sub-let or abandoned, and did not result in residents being evicted from their homes. Furthermore, property mutual exchanges were facilitated in some cases instead of the recovery of the property where it was appropriate to do so.

The Committee commended officers for being on target to meet its £2m loss prevention target, and asked what direction the Council’s targets would likely go in. Officers confirmed that targets will likely increase. Whilst the team was working hard on areas of highest risk of loss to the Council, officers were also focused on areas of less financial value but still of great importance, for example, blue badge fraud is investigated and action taken (potentially including a fine of £100) to assure residents that the Council is tackling fraud of this kind.

Members heard that, with regards to the 99% business rate collection target, the Council implemented an ethical collection policy which focused on those who will not pay business rates, as opposed to those businesses who cannot pay. The Council were able to give different types of relief to those businesses that were struggling, as there was little point chasing debts that could not be paid, as this would cost the Council more money in the long run.

Officers noted that, when collecting business rates payments, there were a number of different methods of payment, but the Council encouraged payment by direct debit. Although this is a gradual change, most residents also prefer to pay in this manner, and it encourages dialogue with businesses that were struggling to pay. This can lead to relief or a payment plan to help with the issue.

The Committee thanked the officers for their report.

RESOLVED: That the Committee noted the arrangements for the prevention and detection of fraud and corruption within the Council and the Quarter 2 2019/20 Counter Fraud Progress Report.