Revenues and Benefits – A Magical Mystery Tour

Bob Trahern

Assistant Director – Revenues, Benefits & Customer Services &

IRRV National President

The Efficiency Agenda What’s in store ?

The Here and Now and the Future

The Efficiency Agenda• Its not new !!!!! • Already work extensively with private sector – software,

bailiffs, printing etc• CCT to Best Value …………..• Gershon Agenda “Releasing Resources to the Front Line” –

outlined potential to achieve £6.45 billion target for efficiency savings and improve service outcomes.

• Integral to ongoing funding streams and CPA now CAA recognition – “More for the Same or Same for Less”

• Comprehensive Spending Review – £4.9bn savings (3%)– 1% real term average increase– LAGBI scheme cut from £1bn to £150m over three years– New Powers - Supplementary Business Rate (White paper) – 2p in £ – Council Tax increase expectation below 5%

Drivers for Change

Two Key Findings

Potential to improve efficiency:

Supported by outdated and unreliable data on unit costs for revenues and benefits combined

A developing picture of partnership working

Involving over 50 councils at varying stages now considerably more

Drivers for Change• Support via regional CoE and capacity funding to stimulate

new ways of working and share best practice – Has this regional approach worked ?

• Being merged and re-badged in 2008

• The Cabinet Office (Nov 2005) – Transformational Government - “Government must move to a shared services culture – in the front office, in the back office, in information and in infrastructure – and release efficiencies by standardisation, simplification and sharing”.

• Clear Message - Future Spending Reviews will be linked to “radical thinking” across sectors– Requirements DWP 5% & 3% “cashable” corporate from

2008 (CSR and CLG how achieved)– Working with what you have got – limited additional funding

- £150m to support service transformation

Local Government Reorganisation

• Voluntary not Compulsory• 26 Unitary Bids were submitted • A mix of single Council but predominantly

County Council Bids – will possibly see 36 Councils coming together by April 2009

• Initial Decisions announced in July 2007, others to follow shortly

• Legal Challenges to date unsuccessful• 5 “improved 2 tier” County Council Pathfinder

bids

What if you are not involved - Shared Services

• Commercialisation : Outsourcing to another public or private company in full or part

• Commercialisation : Setting up of a Joint Venture Company or Long Term Strategic Partnership

• Collaboration on developing a Shared Service Model (from 2 to 48 Councils !!!)

• Collaboration or Centralisation to a Lead Authority

Key messages -partnerships

• Councils integrating all or part of revenues and benefits services – (e.g.) business rates

• Long Term Strategic partnerships• Traditional Outsourcing contracts with the private sector• Developing public – public partnerships

– Host/Lead Authorities – centralised models– Host/Lead Authorities - decentralised models– Collaboration on specific services

• Joint Procurement of ICT • Bailiff and Post Office Contracts• Joint Leaflets and Print Services• Sharing Officers and Expertise

• New examples being added all the time www.audit-commission.gov.uk/transactionalservices

2007 Update

• South West One– Taunton Deane and Somerset CC

– 10 year deal awarded to IBM/HBS/Mouchel Parkman (JVC)

– Multi Agency Shared Service – on behalf of 30 organisations

– Range of services including Customer Services and R&B

• Southampton CC – awarded to CAPITA

• Rushcliffe BC / Charnwood – currently in negotiation with 2 companies – decision expected Autumn

2007

• What else is in the pipeline ? Sefton, Dacorum, Sheffield

The Common features of Public / Public partnerships

• To date, models very much developed out of circumstance as opposed to any great Masterplan !

– Trust

– Bravery

– Staff involvement

– Clear objectives

– Governance arrangements

– Procurement opportunities

– Government Funding !

What’s out there ?• The Anglia Revenues Partnership

– Breckland DC, Forest Heath DC and East Cambridgeshire DC from April 2007

– Formed in August 2003 (264,000 population) – Beacon Status (2006/07 – Transforming Delivery in

Partnership) – Staff Efficiencies of 10% (9 staff reduction)– The small “Shed” Approach– IT Savings – Procurement and Ongoing– Significant Performance Improvements– £400,000 in efficiency savings delivered to 2 forming

Councils– £1,000,000 revenue savings per annum budgeted– Organised in a commercial way – sell resilience and

specialist services

What’s out there ?• Welland Partnership

– 5 Councils across 3 Counties– Built on existing shared vision– Collaboration on discreet specialist services over 5 years

since 2005– Awarded £55k to achieve cash savings £58k & £668k

non-cashable • West Lindsey & North Kestevan DC (NDR)• Wellingborough BC & Northampton BC (NDR)• Kent Benefits Partnership• Westwey – WDDC and WPBC (Bailiffs AND Fraud)• Bassetlaw Consortium (DD Campaigns)

What’s out there ?

• CenSus Partnership– Adur, Horsham, Mid Sussex - 310,000 population– Builds on Common ICT Service – common server

platform– Initially Revenues Only (136k CT Dwellings, 10k NDR)– One Manager with projected 10% staff savings

identifying a minimum £150,000 savings – Virtual Office Solution

• All staff, all locations,all purpose• Hot Desking and Homeworking• See EDRMS as key to success

– Planned “Go Live” delayed – May 2007 and now Benefits will be included

What’s out there ?

• Bridgnorth and South Shropshire Revenues Partnership

– Developed out of immediate need and good timing – Previous good working relationship– Joint Management Board governance arrangements – Benefits Only since April 2006 – delivered “as is”– Delivering increased performance and modest savings– Revenues joined partnership in April 2007

• No Guarantee of success : Ryedale & Hambleton, East of England Model and Maldon & Chelmsford

• Get the reasons for doing it right• Are we right to assume no drop off in performance

& grants

What Will Happen ?

• “Worcestershare” Model– Builds on Worcestershire Hub front office model still

being developed – 50% of calls are R&B – Initially 6 Councils - Worcester, Wychavon, Malvern

Hills, Wyre Forest, Redditch, Bromsgrove now just 3 – Business Case initially developed recently reworked– Initial Predictions : Cashable savings of £1.6m on

current spend of £11m or £8.3m over 10 years allowing for £8.4m investment.

– 11% Revenue Saving per Council thereafter – Nearly 20% reduction in staffing by third year but better

than the best performance in same period assumed– A lead / host authority approach - recruiting

What Might Happen ?• Ongoing or Recently Reported Feasibility Studies

– ESIP : 3 Councils – (4 stands inc R&B)• Governance Issues

• Business Case – significant savings after investment

– Cornwall Consortium – 6 Councils (4 st inc R&B)• County Council Led now unitary bid

– “Doing it for Mrs Barker” – Northamptonshire Project – 6 Councils (4 strands including R&B)

• Evaluating number of options including NDR & Fraud

– North Wales Consortium – 6 Councils (R&B) • Little or no savings identified – status quo likely

– North of Scotland – 8 Councils (R&B) • No report as yet

What Might Happen ?

• Ongoing or Recently Reported Feasibility Studies – East London Consortium - 5 Councils (R&B)

• Likely NDR Joint Team with 2 Councils

– Lincolnshire Consortium – 7 Councils (R&B)• Currently undertaking report

– Hampshire Consortium – 11 Councils (R&B)• Just Publishing its findings

– Warwickshire Partnership – 6 Councils (R&B)• Coventry and North Warwickshire Study

• Regional Fraud Feasibility Study

• Warwick and Stratford – potential implementation

– Gloucestershire Consortium – 3 Councils (R&B)• Just starting report

2007 CSR Expectations• Further opportunities for greater co-operation:

– Single Registration for customer

– Single verification of identity and circumstances

– Collect data once and share

– Send data to a range of systems / or one data store – NFI Problems

– Support a range of life events e.g. birth and bereavement.

– Use of Local Authority access into communities – home visits, outreach surgeries and a network of access points.

– See later slide for financial impacts

• Potential outcomes:

– Reduced fraud, increase benefit/tax credit take-up

– Streamline processes collection and use of information

– Deliver cost savings and deliver increased customer satisfaction

– Increased employment through a fully supported transition network

Single Person Discount Fraud • Abuse of the system is rife as the system is very

difficult to police (Mullaney v Watford DC)• A faceless fraud ?

Useless Facts– 65% of fraudsters – greed / lavish life style – 49% of fraud - committed by insiders– 11% have gambling addictions– 10% have debts– 97% of proven fraudsters - fiddled their expenses– 90% of individuals want to report fraud – but to whom?

• The evidence is there ?

NFI Proposals – Worrying Stats

• 30 Pilot Authorities• First pilot site identified £1.4m, who was it ? • Next 3 sites - £500k with related HB cases to be

investigated• For £500 each (irrespective of size of Council)

– Cut of SPD awards as at 15 October 2007– Electoral Register data in December 2007

• Will provide a list of mismatches to investigate in March 2008 – a quiet time for us all !

• Lawyers and the Association of Electoral Administrators rushing for their books ?

• Monitoring Officer – ultimate decision

The Private Sector Experience

Edinburgh

• 92,000 discounts worth £33m• Match against Experian data confirmed 54,000 correct• Less than £1 per search - 38,000 now being investigated• If find 20% error rate as found by other Councils - £3m ?• Customer Reaction - Rambo the Jambo, Suck

McCrunchie (the 8th), wee granny & Giraffe

Coventry

• Amnesty approach with hard hitting message• Significant notifications received• Likely to utilise VRA software to test those where doubt

A better deal for the taxpayer• Published by Sir David Varney – Dec 2006

– Concentrates on improving the customer experience through a variety of expected channels

– Has highlighted key examples of Local Authority best practice – Bradford, Halton, the Worcestershire Hub

– Recognises Local Authorities as the accessible ‘front office’ who should be afforded powers/trusted status

– Buy in at top level across all partners – a culture change

– Common processes, supported by access to common information

• Greater Joining Up– DWP/HMRC/LA’s pilot – Bolton, Bradford, Brighton-Hove, EROY, Lichfield, Newham,

Rotherham, Sunderland, Tameside, Waltham Forest, Westminster, Wyre

The Varney Expectation

Need for closer co-operation;Take a customer perspective;

Use innovative solutions…

The ‘customer’

LAs HMRC

OGDsDWP

…and deliver significant improvements for our customers

Shared ServicesJoint ProcessesReduced InteractionsCommon Infrastructure

…to release greater cost savings…

Single contactReduced complexityGetting it right 1st timeGreater take-up

My Own Experience

• The Warwickshire Direct Partnership (WDP) comprises all six public authorities in Warwickshire

• Aims to improve the services offered to the public through the sharing of resources, technology and good practice

• Build on Shared services at heart – major initiative joint CRM

• Gershon & Varney agenda

The “Warwickshire Direct” Delivery Model

Office Automation• Word Processing• Document Management• Workflow

Communications• E-mail• Internet• Intranet

Knowledge • Staff.• Procedures• Reference Docs.

Business Applications• Councils Software• Other Agencies Software and Applications• Reporting Tools

Citizen Focused Applications – Mobile and Home Working & Internet Access in public places

Contact Centre - virtual or stand alone

One Stop Shop - one point of contact

IT Infrastructure - increasing computing power and support

Verified data passed for processingFront Office

Back Office

Warwickshire Direct

• Extended Opening Hours• Key Partners – County Council,

Registrars, NHS Warwickshire • Other Community partners –

Credit Union, CAB, NW College• Other potential partners keen to

join• Recent IDeA study undertaken• A model for Warwickshire

Benefits to the Citizen and Staff

• Job Profiles are changing• Homeworking• Flexible Working• Working across sectors will

become commonplace under LAA and CAA requirements

• Changing face of Customer Service – revised Chartermark

• Cheaper Services – Westminster R&B from Coventry, Carlisle, Bromley and Erith

Come and Visit Us on 16th November

Local Government Finance – What’s in the pipeline ?

The Next Six Months And Beyond

22%

22% 45%

11%

Government Grant (RSG based on SSA.)

Business Rates

Sales, Fees and Charges

Council Tax

Where does the Money Come From ?

Source Green Paper : Sept 2000

What has informed the debate?

• The Layfield Report• Balance of Funding Review• Burt Review• Lyons Review

– All identified flaws in current system but supported property tax must be key measure to raising revenue

• And further reports and consultation papers are proposed in the Autumn

• The Voting Public

Council Tax – Is their a public outcry ?

Council Tax – The Facts • Most visible of all taxes• Council Tax has risen 106% since 1993 against 36% rise in

the Headline RPI as result of the Gearing Effect• ‘WORLD CLASS’ collection “in year” performance

– Average is 96.8% for Council Tax (Upper Quartile : 98.3%)

– Average is 98.4% for Business Rates (Upper Quartile : 99.3%)

• Scotland dates marginally lower but incorporate water charges

• Costs of Collection – less than 0.1% of total yield

• Changes are needed to keep the tax modern and accepted

Where are we now?• An uncertain relationship between Central & Local Government

– Growing regional and local differences

• Insufficient local funding– The impact of delayed Comprehensive Spending Review announcements & 0% increase commitment!

• Central/Local Funding Imbalance – Shift from 42:58 in 1989/90 to 75:25 in 2002/03 – Lack of Accountability and Transparency

• Perceived weaker Local Government ?• Not meeting the European objective on fiscal decentralisation

– “commitment to local taxes and charges”

Where do we want to be?

• Balanced funding for local government

• Sources of local funding that are certain

• Greater flexibility and less prescription from the centre to create Strong, Independent unitary local government

• Local government which is efficient, effective and meets the needs of the citizen (a Shared Service !)

How are we going to get there?• Reform of both property taxes

• Council tax

Is Scotland going to get an LIT ? The Northern Ireland experience Wales – revised Council Tax England – following the next election ?

• Non Domestic Rates

Major Regional Variances Key Legislative Changes

A Local Income Tax• SNP / Liberal Democrat manifesto commitment• Would affect more taxpayers than Council Tax• Collected by Inland Revenue !• Two Models

– Assigned and Variable

• A National Rate of 3p in the £1 or up to 3.75% locally on all

• Families earning more than £40,000 will be worse off (based on 2005 data) .

• Main beneficiaries – pensioners and the average family !

Key Changes to NDR

• Empty Rate Charge Changes

– 50% to 100% charge on Owner with very limited exemption

– New Treatment of Industrial Hereditaments

– Anti Avoidance Proposals

• Potential Overhaul of relief’s and exemptions

– Added but rarely taken away

– Removal of Agricultural Land and Buildings

– Major Review of Schedule 5 & SI 1989/2261

• Supplementary Business Rate

– Levy of 2p in the £ (akin to BIDS)

• LAGBI changes – Reduction from £1bn to £150m by 09/10

– Successful legal challenges from Corby and Slough

Key Changes to Enforcement

• Tribunal, Courts and Enforcement Act 2007

– Regulations expected to be effective from April 2009

• Taking Control of Goods

– Schedule 12

– Within 3 months of date of warrant with provision to apply to extend to 12 months

• Compulsory Up Front Fees

– Proposed at £42 per case replacing existing fee structures

– Will not apply to In House Bailiffs

Key Changes on Benefits

• Introduction of Local Housing Allowance– Pathfinder Projects – all live from April 2008– Replacement of Individual Rent Officer

Referrals– Direct Payment to Tenants– Setting up Direct Credit Payment– Grants to Councils to assist in implementation

promotion of scheme, software changes and basic bank accounts

• Rationalisation of DWP PI’s consultation• Moving to CCA – new AC inspection regime

Other Key CSR Changes

• Reduction in National PI’s to 198– Councils to choose 35 targets from suite ?

• £5bn in Ring Fenced Grants shifted to General Grants

• Commitment to build 135k new homes in next 3 years

• Additional monies for flood and coastal defence• PFI credits available for Waste Management

Projects• Extra Cash for National Concessionary Travel

Concessionary Travel – Budget 2006

“…I believe that there should also be free national bus travel. So the Transport

Secretary is announcing today that from April 2008 at a cost of £250 million for every pensioner and for disabled people free off

peak national bus travel in every area of the country.”

• To be introduced on 1 April 2008

• Free Bus Travel in England

•Over 60’S and the Disabled

Funding still to be decided (£212m)

•Rising to £223m in 2010/11

• Possible Smart card proposals

How are we going to get there?

• Create new sources of local funding

– Progressive as opposed to Regressive– Understandable by and acceptable to taxpayers– Equitable between taxing wealth and income– Efficient with respect to administration of collection– Reliable as to Yield

• Establish a long-term financial relationship between Central and Local Government

Other Tax and Charge Options

• Address Balance of Funding Issue• Will be necessary for some equalisation to

exist• Many are Regressive in nature

• Localising Existing Taxes• Vehicle Excise Duty• Stamp Duty• Lottery Funding

Or are New Taxes more Suited !

• A Local Sales Tax• Could be on specific items (e.g.) a

fat tax ?

• A Tourist Bed Tax

• Green Taxes -Minimal Impact on BOF but more about revenue raising and behavioural changes

• Pay as you throw – Climate Change Bill

• A tax on plastic bags

                            

Getting Through Your IRRV Exams

And Surviving !

The Perfect Student

• VERY ORGANISED. Works studiously every week week from September to June

• Researches subjects widely and reads all recommended text books.

• Asks hard questions !• Completes every assignment

on time and undertakes extra.• Arrives at Caerleon totally

prepared with a thirst to demonstrate and challenge their knowledge.

The Classic IRRV Student

• Commits themselves to the demands of the course

• Asks relevant questions• Undertakes all assignments

and works steadily throughout the year.

• Remains organised and focussed balancing the demands of work and study.

• Uses Keele for what its intended, “Revision”.

The Crammer• The syllabi is condensed into a

“12 week crash course”• Asks you what questions you

think will be on the paper • Completion of assignments is

patchy and results erratic • Arrives at Keele totally

unprepared with an aim to determine how much they have got to learn.

• This determines how many 18 hour days they have ahead of them in May and early June

The Day out of the Office student

• Course notes are a bi-product of college attendance

• Completion of assignments is dependent upon social activities.

• Asks whether they can go home early

• Will rely on “what they do in the office” to pass.

• Keele is an extension of their social activities

• The exam week acts as a benchmark that’s its only 3 weeks before their summer hols.

Revision Strategies

• Learn Everything• Be selective on your

weakest areas • Learn what you can

in the time allowed and leave it to chance

• Second guess the examiner and learn those questions only !

How the exams are set & marked• Exams were set in February

and September.• Exams are sat in first full week

in June• Marked by late July• Verified by external body• Results issued in August.• Appeal process available for 6

months• Examiners Comments

available in October.

Marking System• Prizes are given for the

highest score over 75% providing all subjects in the level are taken and are passed in one sitting.

• Two levels of pass for all papers 50% or above

• A Marginal Fail - Within 5% of a pass mark.

• Bad Fail and Very Bad Fail.

What to do to pass ?• Prepare your revision plan

NOW.• Work together to help each

other. Its not a competition– Model Answers– A problem shared ! – Keep each other motivated.

• Self test yourself and use the help of tutors / colleagues / loved ones.

• And with a lot of Hard Work and a Little Luck…you will join the IRRV family

You can be anything you Want to Be• Local Government Jobs

– Revenues and Benefits, Customer Services and now even Chief Executive

• Civil Service – VOA, Inspection Services • Private Sector

– Software Suppliers– Civil Enforcement Agents– Outsourcing Companies– Valuers

• Self Employed – Agency– Consultancy

or a Vocational Role !

• IRRV President - One Year Job

• About 80 engagements• National and International• Promoting Membership• How can you get involved ?

– 13 Regional Associations– Conferences– Performance Awards– Training Events

Any Questions or Views ?