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Efficient Government Fund EGF)1)1)44 Tayside Tax Collection Point

DescriptionSTATUS - INVITED TO SUBMIT STAGE 2 BID - This project is to increase collection levels of Council Tax in respect of current year and previous years arrears.
ISBN
Official Print Publication DateJanuary 2005
Website Publication DateApril 20, 2006

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    1. EFFICIENT GOVERNMENT FUND

    1.1 STAGE 1 APPLICATION - EXPRESSION OF INTEREST

    1.2 TAYSIDE & FIFE COUNCIL TAX COLLECTION PROJECT

    Lead bidder

    Angus Council
    David Sawers
    Director of Finance
    01307 473402
    sawersds@angus.gov.uk

    Brief description of the aims of the project

    The project is to increase collection levels of Council Tax in respect of current year and previous years arrears. This would be achieved by carrying out special exercises in respect of:-

    1. Promotion of payment by direct debit
    2. Tracking of "gone aways"
    3. Matching of non-payers with licensing applications. This would also assist with the collection of Non Domestic Rates
    4. Data matching of non-payers with other Councils employee records
    5. Door to door information gathering
    6. Tracing of taxpayers whose accounts for old addresses are in credit

    Clear description of what the EGF money would be used to buy

    • Project Management
    • Establish a team of eight staff
    • Training of staff
    • Information Technology resource
    • Accommodation costs including furniture and equipment
    • Software costs
    • Travel costs
    • Direct Debit promotion costs

    Partners to the project likely to commit resources

    Angus Council

    Dundee Council

    Fife Council

    Perth & Kinross Council

    Name of other organisations with whom the project has been discussed

    None

    Evidence that suggested approach has been deployed successfully elsewhere

    The Revenues Managers of the four Councils have evaluated the results of initiatives undertaken in their individual Councils using currently available resources and projected the likely results of the proposed initiatives on the basis of a joined up approach and additional resources being made available. The outcomes in terms of amounts which would be collectable are best estimates.

    Are there any restrictions to potential for enlargement of the project (ie technology, number of partners etc)

    The project could be expanded without undue difficulty subject to the additional partners being geographically adjacent to the current partners for initiatives such as door to door collecting and direct debit promotion.

    Benefits projected from the project

    The estimated projected benefits are increased collections of Council Tax and Water Services charges (this is a consequence of joint billing and collection arrangements). The matching of non-payers with licensing applications will also have a knock-on effect on Non Domestic Rates collections in respect of liquor licences.

    The estimated benefits have been arrived at by taking cognisance of current initiative results. The annual increases in collections for the four partner organisations are detailed below and will be reviewed on an on-going basis. The project start date would be at some point during 2005/06 with the four year project finishing during 2009/10.

    Estimated financial projections

    Overall project cost

    The estimated costs are calculated based on full years. The project would start at some point during 2005/06 with the four year project finishing during 2009/10.

    Total

    Year 1

    Year 2

    Year 3

    Year 4

    Project Management

    35,000

    35,000

    35,000

    35,000

    Project Staff

    155,000

    155,000

    155,000

    155,000

    Staff Training & Recruitment

    6,000

    3,000

    3,000

    3,000

    IT Resource

    30,000

    15,000

    10,000

    10,000

    Accommodation

    10,500

    10,500

    10,500

    10,500

    Furniture & Equipment

    13,000

    0

    0

    0

    Software

    2,000

    2,000

    2,000

    2,000

    Travel

    4,000

    4,000

    4,000

    4,000

    Direct Debit Promotion

    20,000

    20,000

    20,000

    20,000

    Inflation

    0

    7,000

    14,000

    21,000

    1,041,000

    Estimated projected benefits

    Total

    Year 1

    Year 2

    Year 3

    Year 4

    Angus in-year Council Tax

    30,000

    30,000

    30,000

    30,000

    in-year Water

    10,000

    10,000

    10,000

    10,000

    Arrears of Council Tax

    52,000

    52,000

    52,000

    52,000

    Arrears of Water

    21,000

    21,000

    21,000

    21,000

    Dundee in-year Council Tax

    21,300

    21,300

    21,300

    21,300

    in-year Water

    8,700

    8,700

    8,700

    8,700

    Arrears of Council Tax

    213,000

    213,000

    142,000

    142,000

    Arrears of Water

    87,000

    87,000

    58,000

    58,000

    Fife in-year Council Tax

    112,000

    112,000

    112,000

    112,000

    in-year Water

    38,000

    38,000

    38,000

    38,000

    Arrears of Council Tax

    375,000

    375,000

    375,000

    375,000

    Arrears of Water

    125,000

    125,000

    125,000

    125,000

    P & K in-year Council Tax

    34,000

    34,000

    34,000

    34,000

    in-year Water

    14,000

    14,000

    14,000

    14,000

    Arrears of Council Tax

    72,500

    72,500

    72,500

    72,500

    Arrears of Water

    29,500

    29,500

    29,500

    29,500

    4,772,000


    Is a pilot required - see guidance notes

    Additionally: why is EG funding required

    Collecting unpaid local taxes is time consuming and resource critical. The four partner Councils have maximised their arrears collection efforts within available budgets but feel that the joined up approach will achieve benefits of scale.

    Subject to recruitment and training requirements and timescales additional staffing resources could quickly be utilised and accrue dividends in terms of additional collections.

    Does this project complementary in anyway to other EG work

    No

    Is "stage 2 development funding" requested?

    No