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Duncan Baxter, IRRV (Hons) Director Destin Solutions Limited Modelling for

Duncan Baxter, IRRV (Hons) Director Destin Solutions Limited Modelling for Local Support for Council Tax. Stages in scheme creation. Impact assessment - Communities for Local Government:

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Duncan Baxter, IRRV (Hons) Director Destin Solutions Limited Modelling for

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  1. Duncan Baxter, IRRV (Hons) Director Destin Solutions Limited Modelling for Local Support for Council Tax

  2. Stages in scheme creation

  3. Impact assessment - Communities for Local Government: Authorities will be free to set their own eligibility criteria and rates of award for working age claimants. We cannot predict exactly what authorities will choose to do. Local Government Finance Bill

  4. Adds in Schedule 1A LGFA 1992 Matters to be included in schemes A scheme must state the classes of person who are to be entitled to a reduction under the scheme. The classes may be determined by reference to, in particular— the income of any person liable to pay council tax to the authority in respect of a dwelling; the capital of any such person; the income and capital of any other person who is a resident of the dwelling; the number of dependants of any person within paragraph (a) or (c); whether the person has made an application for the reduction Local Government Finance Bill

  5. Effective from 1st April 2013 Issue Demand Notices March 2013 Scheme in place – 31st January 2013 Tax Base set – Nov/Dec 2012 Consultation – June 2012 Scheme Modelling – April 2012 Profiling – Now! Timescales for scheme

  6. Stages in scheme creation

  7. Understanding current demographics Identifying Vulnerable Groups Identifying current ‘spend’ on groups Identifying potential ‘cut backs’ Profiling requirements

  8. Who are ‘vulnerable groups’? • INSERT DETAILS HERE • Section 8 Local Government Finance Bill: • Amends Section 13A: • (2) Each billing authority in England must make a scheme specifying the reductions which are to apply to amounts of council tax payable, in respect of dwellings situated in its area, by— • persons whom the authority considers to be in financial need, or • persons in classes consisting of persons whom the authority considers to be, in general, in financial need.

  9. Single Housing Benefit Extract (SHBE) Benefit system data Council Tax system data Electoral roll HMRC Other Internal databases Available data sets

  10. Number of occupants Age of occupants Number of dependants Number of non-dependants Income Level Income Types Capital Level Discretionary Awards Ethnic Groups • Council Tax Band • Council Tax payable • Benefit received • Period of liability • Disregards • Discounts • Disabled Reduction • Parish • Ward • Full Address C T Data Benefits Data

  11. Profiling examples

  12. Data not just limited to existing claimants Identifying potential ‘non’ claims Identifying potential ‘vulnerable groups’ Facilitates more creative schemes Benefits of ‘rich’ data

  13. Additional uses of ‘rich’ data

  14. Local Authority Accountants Revenues/Benefits Major preceptors Local preceptors Members Electorate/Taxpayers Support Agencies (CAB,etc) Who needs to know?

  15. Stages in scheme creation

  16. Interest of Authority Interest of taxpayer Interest of vulnerable groups

  17. Political Election campaigning Political view Cleansing Financial Budget control Building up reserves/contingency Influences on modelling

  18. Current level of benefit – no reduction 10% reduction overall 30% reduction overall Capping to Band E Reduce capital limit to £6,000 Base on Income bands Schemes under consideration

  19. Top down Remove attributes Refine attributes Bottom up Add attributes Approaches to modelling • Percentage Adjust tapers by percentage Apply to income bands • Capping Cap at Council Tax Band Cap at Income Level Cap at Capital Level

  20. Modelling example

  21. Modelling example

  22. Stages in scheme creation

  23. Consult major precepting authority Publish a draft scheme Consult other persons who are likely to have an interest in the scheme Limited details at present Consultation

  24. Stages in scheme creation

  25. Keep track of total spend to budget Forecasting likely shortfall/surplus Consider scheme modifications Add additional data sets for modelling Monitor/review the scheme

  26. Need to profile now Use the richest data possible Determine the ultimate aim of the scheme Consider all options Monitor the scheme closely Summary

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