Highland Council Redesign: Service Income Review

As part of The Highland Council’s Redesign Programme, a comprehensive review of Service Income was undertaken by Deloitte and The Highland Council. The Highland Council received no charge following agreement with Deloitte that this would be very useful work experience for their Assistant Manager.

The joint report identified opportunities for the Council to improve collection levels and deliver process efficiencies by becoming more commercial in its approach to Service income.

As part of these improvements The Highland Council today (7th March 2019) approved the following recommendations:

 1. To increase the de minimus (minimum) value of invoices issued from £10 to £12.50 (service charges less than this sum will require to be paid by up front or by Direct Debit)
2. Where alternate payment methods exist, to introduce an invoicing surcharge of £15 (including VAT).
3. To apply statutory interest and a late payment fee where an invoice is not paid within agreed terms and conditions (applicable to commercial customers only).

These changes will be implemented with effect from April 2019.

Councillor Bill Lobban, Convener of the Highland Council and Chair of the Council’s Redesign Board explained: “Between April and December 2018, the Council paid 96.3% of its suppliers within 30 days, yet only 53% of our customers paid us on time.  These changes move the Council more in line with how commercial organisations operate; allowing us to become more efficient by changing how our customers pay us, recouping the actual costs associated with administering invoices and being more aware of how and when we provide credit.”