27/02/17 Internal Enforcement – A Council Perspective One Year On The Current Operating Context • Reducing Residual Support Grant. Clive Jones • Welfare reforms: Revenues and Benefits Manager • Universal Credit roll out impacting on council tax collection rates through direct payments to claimants Luton Council • Council Tax Reduction • Business Rate Retention. • Appeals and reducing valuations. • Business Improvement District. • Enterprise Zone 1
27/02/17 How does Luton increase revenue to protect services? Enforcement Business Drivers • Increase council tax and business rate collection rates: 4 • Business growth crucial to financial sustainability: years of improvement. 92.5% to 97% • additional income • Collect arrears: Team of 6 collecting £6.5m per year. • increased employment • Complete VOA billing authority requests to increase • Increasing income through commercialisation business rate values: Over £1m per year increased. • The need to ensure you only enforce once if there are • Traded Services: Revenues Solutions – Enforcement and multiple debts aged debt • Recognising vulnerability • Make changes to the Council Tax Reduction scheme. • Fee calculation of 7.5% over £1,500 • Collect own enforcement fees that would otherwise be collected by external enforcement agencies. 2
27/02/17 Making the Business Case Political buy in helped by: • Confirms costs and income • Sound financial case. • Sets financial expectations over five years • National set regulations and fees. • Identifies risks • Examples of local authorities who are already enforcing • Assists political buy ‐ in successfully. • Reviewing and strengthening policy to provide assurance. • Getting support of voluntary community sector. • Have backup of external partnership with private sector enforcement. 3
27/02/17 Cost considerations: Key risks: • Enforcement training • Reputational – It only takes one poor enforcement • Pre ‐ compliance calling action. • Enforcement software • Financial – Meeting income targets. • Protective equipment • Political – Members support . • Video cameras and hand held devices • Operational –Staff safety. • Certification and training • Operational – Enforcement staff retention. • The bond • Operational – Creating capacity for change. • Enforcement staff travel and expenses • Taking control of goods and auction costs 4
27/02/17 Implementation considerations: Implementation considerations: • Revise debt polices • Revise debt polices • Consider staff structure, conditions of service and • Consider staff structure, conditions of service and training. training. • Recruit staff. • Recruit staff. • Develop performance monitoring framework. • Develop performance monitoring framework. • Develop enforcement processes. • Develop enforcement processes. Software procurement Software procurement • • • Enforcement content on website • Enforcement content on website • Payment systems • Payment systems • Change or develop any interfaces between systems • Change or develop any interfaces between systems 5
27/02/17 One Year On ‐ Lessons learnt One Year On – Lessons learnt • Recruitment of qualified enforcement agents may be • It takes management capacity to implement and manage difficult. There is not a large pool of people. on an ongoing basis. • Training of enforcement agents takes time: Typically 3 • You need an external partner for out of area months. enforcement. • Software procurement takes time: 3 months from • Productivity is not as high as external enforcement requirements identification to configuration. agents. • Council tax and business rates are not the only debts. • You will cover your costs and have additional income for Parking penalty charge notices. service provision 6
27/02/17 Facts and figures Facts and figures • Resources: 4 enforcement agents and a team leader. • We have not taken anyone to Sale of Goods stage. • Collect sundry debt, council tax and business rate debt. • Zero complaints one bouquet! • 4000 cases per agent per year. • Council tax collection rate in 15/16 was 97% (+0.2%) • Enforcing for another council. No charge to them. • Business rate collection rate in 15/16 was 98.1% (+0.5%) • 10,000 council tax summonses. • £6m in council tax and business rates aged debt was • Pre ‐ compliance calling collects 14%. collected in 15/16 • Significant collection success occurs at compliance stage – 49% • Enforcement stage success of 15%. 7
27/02/17 Future uncertainty Luton direction • Review of enforcement fees? • Continue internal enforcement: Provides local • Review of business rates? employment. • Review of courts and enforcement? • Traded Services enforcement: Looking for other nearby • EU referendum result and the economy? councils. • Universal credit roll out? • Keep a watching brief on developing legislative • Council Tax Reduction changes? framework. • Continue to deliver an income for the Council. 8
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