what a waste? - the irrv · 2016-05-09 · what a waste? the journal for members of the institute...

● John Roberts’ diary ● Valuing property in Spain ● Benefit services can do more!

How to prove localauthorities do more than

just empty the bins

WHAT AWASTE?

The Journal for members of theInstitute of RevenuesRating and Valuation

April 2005ISSN 1361-1305£5.50

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IRRV COLLECTION AND ENFORCEMENTCONFERENCE AND EXHIBITION12TH - 13TH MAY 2005 HILTON HOTEL, BLACKPOOL

This exciting conference will deliver an updateon the Lyons Enquiry and look at key areas ofimproving efficiency in Collection, the future ofenforcement and implications of the CivilianPartnership Act for Revenues professionals.

There will also be a series of workshops covering Distress and Enforcing Debt.

DELEGATE FEESResidential Plus £565 plus VAT (IRRV Members£530 plus VAT)(accommodation for Weds 11 & Thurs 12 Maynights only)

Residential £495 plus VAT (IRRV Members£460 plus VAT)(Accommodation for Thurs 12 May night only)

Non Residential £395 plus VAT (IRRV Members£360 plus VAT)12-13 May (conference dinner included)

Day Delegate* £245 plus VAT (IRRV Members£220 plus VAT)*please indicate date of attendance.

Commercial £600 plus VAT

HOW TO BOOKTELEPHONE ENQUIRIES 020 7691 8992

All bookings must be made in writing using oneof the following options:

WEB www.irrv.org.uk/meetings

FAX 020 7404 2183

EMAIL [email protected]

POST IRRV Conference Department,41 Doughty Street, London WC1N 2LF

IRRV CONFERENCE DIARY 2005

COLLECTION & ENFORCEMENT CONFERENCE

Hilton Hotel Blackpool 12-13 May

BENEFIT FRAUD SYMPOSIUM

Hilton Hotel Blackpool 7-8 July

SCOTTISH CONFERENCE AND EXHIBITION

Crieff Hydro Hotel Crieff 7-8 September

ANNUAL CONFERENCE AND EXHIBITION

MICC Manchester 18-21 October

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NEWSBUDGET BLACK HOLEWhy the council tax crisis can only

be solved by funds from theTreasury

6HELP AT HANDThe Government plans to help local

authorities deliver efficiency gains

7ASSOCIATION NEWSThe Scottish AGM

8

REGULARSDIRECTOR’S NOTESSocial inclusion holds the key to

social improvement

VIEWPOINTRichard Harbord predicts it will

all end in tears for the council tax

9PRESIDENT’S DIARYJohn Roberts reports on the start

of a hectic year in his new column

10E-GOVERNMENTHow portable technology is helping

officers to get out more

17

EDUCATIONCourse dates and venues

18BENEFITSThe Inland Revenue and

Pension Service are no match

for local authorities

22

FEATURESCOVER STORYWhy the council tax leaflet is essential

to effective local government

11VALUATION VIEWThe role of the cadastre in Spanish

property valuation

16LEGAL CORNERLegal changes make life better

for recovery officers

20

IN THIS ISSUE...

11

22

6

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IRRV Insight

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Insight April 2005 3

April 2005 ISSN 1361-1305

© IRRV 2005. Reproduction in whole or in part of any article is prohibited withoutprior written consent. The views expressed in this magazine do not necessarilyrepresent the views of the Institute. Whilst all due care is taken regarding the accuracyof information, no responsibility can be accepted for errors. Any advice given doesnot constitute a legal opinion.

IRRV Insight is producedby Wrap Communicationson behalf of the IRRV.Unless otherwiseindicated, copyright in this publication belongs to the IRRV.

IRRV President John Roberts IRRV; Vice Presidents Suzanne Dean CPFA IRRV, Allan Traynor FCCA IRRV; Council: Kate Adams IRRV, Simon D Bailey IRRV, BarbaraCulverhouse CPFA IRRV, Carol Cutler IRRV, Tom Dixon, BSc (Est Man) IRRV, Pat KDoherty CPFA IRRV, Richard J Guy FRICS (Dip Rating) IRRV MCIArb, Richard LHarbord MPhil CPFA FCCA IRRV FIDP FBIM FRSA, Julie Holden IRRV, CarolineHopkins IRRV, Diane Leggo Bsc MRICS IRRV, Bill Lovell IRRV, Kerry McDermott IRRV, Roger G Messenger BSc (Est Man) IRRV, Maureen Neave MBA Tech IRRV, JaneRatcliffe IRRV, Helen Robertson IRRV, Eric Rose FRICS IRRV, Peter Scrafton IRRVFCIArb, Angela Storey Tech IRRV, Alan J Titheridge CPFA IRRV Bob Trahern IRRV,Gary L Watson IRRV, Nigel Woods FRICS IRRV; Director David Magor OBE IRRV

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Distress Law and Practice £275.00 + VAT

(for Local Taxation and Rent)Authors David Magor and Bill LovellHard copy edition with electronic version included.

Available from May 2005 - To pre-order your copy e-mail: [email protected]


DIRECTOR’S NOTES

T he Institute’s Awards Panel, under the Chairmanship of ColinThrower, has now considered

the structure of this year’s challenge. There have been some significant changes to the categories, in particular theintroduction of two new awards – one ofwhich addresses the issue of social inclusion.

Local strategies for social inclusion are an important part of the communityplanning process, and Institute membersworking in revenues and benefitsadministration are key to the development of these policies. Communities that aresocially inclusive in every respect cannot be effectively developed if, as is too often the case, local authorities adopt a superficial approach to achieving this aim. Much is said on the subject, but significant action rarely gets taken. One of the first tests should be housing and council tax benefit performance; to me it seems pointless to develop new policies when benefit performance is not in the top quartile.

Over the next year the Institute plans to take an aggressive stance in relation to the delivery of social inclusion policiesand the creation of a truly inclusive society.Building on last year’s excellent event, the annual conference on this topic will be further developed this time around. The new award, ‘Excellence in social inclusion’, will no doubt be a popular category, and we are developing an awareness programme to coincide

with the dissemination of the awardapplications. The IRRV wants to actively encourage local authorities to shift their focus from combatting poverty to creating communities inclusive of all their residents.

The strong relationship, enjoyed by the Institute with the ODPM and the Department for Work and Pensions, will be used to ensure local authorities are properly resourced to deliver effectivepolicies. One of our priorities will be the development of meaningful take-upcampaigns for all benefits. It is important for campaign methodology to be shared between councils so that local campaigns are delivered in a cost–effective way. We will work with professional datahandlers to create models to inform local decisions and prioritise resources.

Improvements in social inclusion can only be achieved if networks are created at a local level. There must be meaningfulpartnerships, engaging the voluntary sectoras well as local, and central government. The Institute will play its part. Using our publications, conferences and forums, we want to encourage new and sustainableways of working together. ■

‘‘ Over the next

year the Institute plans

to take an aggressive

stance in relation to

the delivery of social

inclusion policies and

the creation of a truly

inclusive society’’

OPEN TO ALL David Magor Director

apr05-ins-p05 Dnotes 24/3/05 2:32 pm

6 Insight April 2005

Last month’s budget saw the Chancellorannounce that every pensioner householdpaying council tax will receive £200 towardsthe cost of their local tax bill. But the £1.5bndeficit looming over next year's council taxbills has been untouched by Gordon Brown. Sir Sandy Bruce Lockhart, Local GovernmentAssociation (LGA) Chairman said: “Extrahelp for pensioners is good news, but thismustn't be seen as a substitute for the properfunding of local services, otherwise it is ablunt instrument, that will leave many peopleon low and fixed incomes facing double-figure council tax rises next year.“In December £1 billion was put in to keepcouncil tax rises down this year, but most of this was ‘one off’ money and it needs tobe replaced. Now we have welcome but one-off cash help for pensioners but this needs to be seen against the high and governmentimposed council tax rises of recent years.“We cannot continue to bail out aninadequate local government funding systemwith last ditch quick fixes and indiscriminatecash handouts. That does nothing to buildefficiency and accountability. We need asystem that is not so dependent on centralgovernment grant decisions; and it mustreflect people's ability to pay and respond to local circumstances.”A survey by the Chartered Institute of PublicFinance and Accountancy (CIPFA) revealedcouncil tax bills will rise on average this yearby four per cent. With an election expected in

May all the LGA group leaders have called ontheir respective party leaders to commit toreforming the local government finance systemin the first session of a new Parliament.Sir Sandy Bruce Lockhart said: “With thehelp of late one–off funding from theChancellor, councils have done everything intheir power to keep the lid on council taxrises this year, but we are left with a fundingblack hole next year. Continuing efficiencysavings and ongoing improvement, praisedby the Audit Commission as knocking spotsoff the private sector, is paying off in termsof cushioning the blow of governmentunderfunding. But people on low and fixedincomes will ask why government fundingpolicy assumes year-on-year inflation-bustingcouncil tax rises.“If local government is to continue toimprove, it must no longer be left to stumblefrom one year to the next with last minutefinancial fixes from central government. We need a longer term funding solution that takes the pressure off council tax payersand puts the responsibility to deliverefficiency and effectiveness firmly withaccountable local councils “There is a strong body of evidence behindour case for reform which is with Sir MichaelLyons, who is leading the Government’sreview. Reform has to be grasped, otherwisethe funding black hole and the impendingrevaluation of properties will combine to create a politically volatile cocktail.”

■ ODPM helps clarify the business ratesbillThe ODPM has issued a leaflet providingsome of the information needed tounderstand the business rates bill, andhighlights some of the changes for 2005.Presented in a small booklet format, the document can be found at:http://www.local.odpm.gov.uk/finance/busrats/busyr2005.pdf

■ Scottish Domestic Water and Sewerage Charge reductions determinedThe reductions in water and seweragecharges in Scotland for 2005/06 have been announced in regulations. A reduction is to be available to eligiblepersons who are in receipt of council tax benefit, and who are liable to paycharges in excess of £255 (for the year2004/05, this amount was £240) in2005/06. It allows for the part of thecharges in excess of £255 to be reducedin direct proportion to the council taxbenefit received.

■ Decapitalisation rate announced for ScotlandThe Valuation for Rating(Decapitalisation Rate) (Scotland)Regulations (SI 2005/41) prescribes the decapitalisation rate to be appliedwhen valuing lands and heritages in Scotland, in accordance with thecontractor's basis for the 2005 valuationroll. The contractor's basis is the methodof ascertaining the net annual value of lands and heritages. It refers to thecost of construction, or provision, or totheir capital value. The decapitalisationrate prescribed is 3.33 per cent in thecase of certain MoD property, churchproperty, healthcare property andeducational establishments (as defined in regulation two). It is five per cent in any other case.

■ Scottish non-domestic rate poundage declaredThe Non-Domestic Rate (Scotland)Order 2005 (SI2005/14) prescribes a rate of 46.1 pence in the pound as the non-domestic rate to be leviedthroughout Scotland in respect ofthe financial year 2005-2006. A rate of 48.8 pence in the pound was the figure prescribed as the non-domesticrate to be levied throughout Scotland by the Scottish Ministers for the financialyear 2004-2005.

BUDGET AMENDS

NEWS


NEWS

The Government has provided more information on how they are going to help local authorities deliver the localgovernment efficiency gains of at least £6.45 billion by 2007/08set out by the Chancellor of the Exchequer in the 2004 SpendingReview. In a guidance pack sent out to the leaders and chiefexecutives of all local authorities in England, the Governmentoutlined a three–stage self–assessment process for localauthorities to measure and report any efficiency gains. The method was determined following consultation with a group of local authorities and organisations, including the Audit Commission, Local Government Association andINLOGOV of the University of Birmingham. Guidance is also offered on how change agents, such as the

Regional Centres of Excellence, will support local authorities in delivering efficiency gains. It gives examples of good practicewithin local government on which local authorities can build to deliver improved value for money in public services.Local Government Minister Nick Raynsford said: “The efficiencyagenda is not about cutting services. It is about improvingproductivity by getting more from the same resources. This is areal win:win opportunity for local government as all savings canbe reinvested in improved services or used to reduce council tax. “A number of local authorities have already demonstrated theirscope for substantial efficiency savings, through for examplebetter procurement and streamlined back offices, and we want to use this experience, and build on it, to deliver even better,more efficiently organised, public services. I hope that everyauthority, change agent, and local government organisation willembrace the opportunities there are to improve the way localservices are delivered.”The guidance, Delivering Efficiency in Local Services, can befound at:http://www.odpm.gov.uk/stellent/groups/odpm_localgov/documents/page/odpm_locgov_034633.pdf

A HEALING HAND

DISTANCE LEARNING DISPATCH

Some months I begin to write what I think will

be a short Dispatch about a seemingly uneventful

month, but then I start to remember more

and more things, and it turns into an epistle.

As you read this some of you may have just

returned from the Keele Revision Week, and you

have obviously recovered sufficiently enough to

make the effort to pick up this magazine. I am

currently preparing to gear up for it and hope to

have answers available to any question that may

arise. Please feel free to contact me if there is

anything you need to ask. I hope everyone has

now completed their examination entry forms,

but if there are any lingering difficulties

get in contact sooner rather than later.

As you turn your attention to revision don’t

forget we are still here. ‘We’ being the tutors,

the IRRV and the DLC, all of whom can

help with those last minute problems or

queries. You should know how to contact

us by now, so please do so with any query

no matter how small!. As usual, best wishes

with your continued study.

Les Tuckwell is Manager of the IRRV DistanceLearning Centre

West Midlands Association Friday 8 April 2005 Dinner Dance Keele Hall, Keele University,Staffordshire.

For reservations please contact:Dee Bough on 01386 565485or

Barry Powell on 07899021672 E-mail:[email protected]

ASSOCIATION DIARY

SCOTTISH AGM

The Scottish Association AGMtook place on 16th February in Falkirk. The meeting wasattended by over 50 people. The speakers were Jan Alexander,IRRV Policy & ResearchManager, and John de la Ruefrom Capita. New AssociationPresident Ian Ballance presentedcertificates to successfultechnician and professionalexamination students (see picture, right).

2005/2006SCOTTISH ASSOCIATION OFFICERS AND EXECUTIVE MEMBERSPRESIDENT:IAN BALLANCEVICE PRESIDENT:HILLARY WILSONHON SECRETARY & TREASURER:PAUL EVANSEDUCATION LIAISON OFFICER:JANETTE PROUDMEMBERSHIP OFFICER:LES ROBERTSON

HON AUDITOR: RON SKINNEREXECUTIVE: ALISON BARRETTALAN HENRYJACEK NOWAKMIKE PETERSONALLAN TRAYNORALISTAIR WOOD


Euclidian Benefits is a web-based interactive learning tool designed as astandard national on-line induction programme for new entrants intoHousing Benefit and Council Tax Benefit.

IRRV and Mid Sussex District Council are rolling out the Euclidian Benefits programme nationally now!

See Euclidian Benefits in action at the following events:

IRRV Welsh Conference 23rd June 2005

IRRV Benefit Fraud Symposium 7th - 8th July 2005

IRRV Scottish Conference 7th - 8th September 2005

IRRV Annual Conference 18th - 21st October 2005

IRRV will be holding Euclidian Benefits regional seminars at:

Birmingham 9th May 2005

Scotland 19th May 2005

Bristol 2nd June 2005

London 16th June 2005

Invitations to regional events will be sent out shortly

For further details on Euclidian Benefits, please contact: Kate Hodder,Tim Gascoigne, Patricia Wilbraham byemail to: [email protected]

Funded by the Department for Work and Pensions

Euclidian Benefits event diary

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Meritec specialises in the provision of ICT and Business Improvement Services to Local Government being well established and highly regarded in the marketplace.

Our Business Consultancy Team is expanding as a result of a growing list of satisfied clients and strong demand for Revenues and Benefits specialists who understand ICT.

We know that success comes from having high quality, well motivated people and are seeking applications from indi-viduals who wish to develop their career, whilst adding value to our team.

We are fiercely proud of our growing reputation as trusted partners, providing cost effective innovative solutions in response to the business needs of our clients.

You can expect a variety of challenging and demanding assignments that will be matched to your particular skills and experience.

IRRV qualified or equivalent, you will have excellent communication skills both verbal and written including the ability to formulate concise proposals and business documentation.

2 to 3 years experience in Revenues and Benefits is a pre-requisite, as is the ability to work well under pressure and often to tight timescales.

It will be essential that you can work well in a team environment as well as on your own initiative.

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VIEWPOINT

T he current saga over council taxmust, it seems, end in tears. Theaverage increase this year of

4.4 per cent is roughly twice as much as inflation, and unlikely to enthuse those on fixed incomes. However, considering the pressures local authorities are under(tight budgets and lessening reserves), this is a professional and pragmatic response to the threat of capping.

There will be difficulties next year as thegrant levels are being held down, especially ifthis year’s rises have been assisted withbalances. At a local authority I worked for, my predecessor as Borough Treasurer wasdetermined that his last year in office shouldbe rates free, and a zero per cent increase wasannounced amid plaudits for the retiringTreasurer. The resultant increase of 32 percent the following year (my first as Director),was almost enough to put me in the GuinnessBook of Records. In today’s regime anincrease of five per cent would leave a sizeabledeficit and create a small legal problem.

I do not envy Sir Michael Lyons the task of constructing a set of workableamendments to the council tax, especiallygiven next year’s increases after the grantposition and revaluation. Further difficulties

lie ahead. The Government is determined to see considerable savings in costs of backoffice functions, despite likely difficulties in persuading autonomous local authorities to share and share alike. Reorganisation andneighbourhood management are also likelyto be problematic.

Reorganisation is a continual threat. I am sure improvements could be made, but they must bring sufficient benefits to justify the costs and disruption of themergers. I still remember the unpleasantnessand hostility which surrounded the 1965London re-organisation. There is a certainillogicality about our current structures:I am sure there will be changes in the nextfew years and presently unitary authoritiesseem in favour. It is easy to measure the costsof merging authorities, but far more difficultto gauge the difference in performance levelsexperienced by residents and users. The studies after the London reorganisationwere somewhat inconclusive, but we nowhave the CPA to inform the process.

Neighborhood management is a moreexciting challenge. Research carried out by the University of Chicago, concerningneighbourhoods in their area, revealed amixture of good and bad governance, with

groups varying both in size and form. Somewere based on existing residents associations,while others were purpose built to address a specific issue; a few were run by anominated or elected managementcommittee. Whether large or very small, most got their funds from the local authority(although they could apply elsewhere), and many of them achieved a considerableamount. It is a new concept for us, not to beconfused with the well managed, financiallyregulated and audited parish council.

Once, when the budget was set and thebills dispatched, local authorities had time to get their house in order. With the closingof accounts getting earlier and earlier, theprocess now starts at the end of the year and finishes just in the time for estimates tobegin. One authority I worked for closed itsaccounts and presented them for audit by 30 April each year. This was only achievedby the entire finance department working aseven day week, and internal audit workinglong hours as a gesture of solidarity. Theaccounts were never very accurate of coursebut that did not seem to matter! ■

Richard Harbord is a consultant and a member of IRRV Council

BLEAK FUTUREAs dark clouds gather in the distance for council tax,Richard Harbord forecasts a gloomy year ahead

apr05-ins-p09 viewpoint 24/3/05 10:33 am


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PRESIDENT’S DIARY

John Robertstakes a break from his hecticschedule to sharethe highlights of his first few monthsas IRRV President

By the time you read this the Institute’s National Council will have returned

from another successful InternationalConference, this time in Southern Spain. I will be giving you more details of thisgathering in my next column, but for now I am going to concentrate on the events I have already enjoyed during my short time as President.

I received the chain of office from myimmediate predecessor, Carol Cutler, at the Brighton Metropole on 14 October, and then attended a South-EasternAssociation meeting the following Tuesday.The event could be seen as Thanet’s answerto an open bus tour enjoyed by a FA cup winning team in their home town. My colleagues were eager for a glimpse of the hallowed presidential chain, there was a full Council Chamber, and a presentation on council tax reform from Institute Director, David Magor.

My first official engagement involved atrip to Bournemouth at the end of Octoberto discuss future conferences. I then had to dash back to London to respond onbehalf of the guests at the Rating SurveyorsAssociation’s annual dinner in MiddleTemple. Those attending included InstitutePast President Roger Messenger, who wascelebrating his stint as President of the RSA,and guests Christine and Neil Hamilton. It was an entertaining start to my year,though the evening was slightly dampenedby London traffic, a missed train, andhaving to persuade a cab driver to take a diversion to Margate!

After a luncheon given by the Associationof Chief Estates Surveyors at the LondonGuild Hall, I presided over the first offour Institute Council meetings held toconduct Institute business. Having chairedthe Social Inclusion Conference and playedhost to keynote speaker Chris Pond MP, the Housing Benefit Minister, I witnessedSuzanne Dean, the Institute’s Senior VicePresident, ably compere the secondsuccessful annual dinner dance of the EastMidlands Association in mid-November.

I then had to make three trips to Scotlandin three weeks; not an easy commute for someone from south–eastern England. My journeys included going to Dumfries for the Scottish Forum, the Scottish

Association’s Benefits Conference in Falkirk,and the first Association reception inEdinburgh. Scottish hospitality has the potential to wear down any President, and I mean that in the nicest possible way. As well as the quality of the conference sessions,occasions such as karaoke in Dumfries(which went on so long we were nearlylocked out of our hotel), and the dinnerdance at the Benefits Conference, have left me with many fond memories.

The remainder of December was a comparatively quiet affair, with two trips toLondon and a telephone conference for theBenefits Faculty Board. That being said, oneof my trips to London included the Institute’sstaff christmas party. Not only was I expectedto impersonate Father Christmas, but I alsofound myself leading a sing-song on a grandpiano the hosts had specially imported, thuscreating another London venue Institute staffwill have to avoid in future!

After a well-earned break, and a few days to catch up on work for ThanetCouncil, January got off to a slowish start.However it picked up mid–month with three London events during which I playedhost to sponsors, prizewinners, and theODPM. The month ended on a poignantnote, with the very moving funeral of LeslieHardy, one of the Institute’s distinguishedPast Presidents. The funeral was held in the picturesque Yorkshire town of Baildon,and the Institute’s presence was wellreceived by friends and family. Januaryended with a partner organisation’spresentation at Chelsea Football Club. It was a great privilege that I did not wantto miss, even though my only previousexperience of Stamford Bridge was sufferinga cup defeat as a terrified Leicester Citysupporter some thirty years ago.

To date I have travelled nearly 6,000 miles,attended 17 events, and spent 21 days away from my desk. It’s hard work, butincredibly rewarding, and I have already had the opportunity of meeting manycolleagues who not only share my passionfor the IRRV, but also demonstrate theprofessionalism and diversity that puts us atthe forefront of policy-making. ■

John Roberts will be reporting regularly in Insightduring his Presidential year

A POSITIVE START

apr05-ins-p10 pres des 24/3/05 10:35 am

Prof. Riel Franzsen (right) with IRRV Council Member

Pat Doherty


CONFERENCE

W hen you’re having a bad day,spare a thought for the localauthority revenues officers

in Montenegro. They think themselves lucky if they collect 30 per cent of localtaxes. They are not allowed to access thenational property register telling them where properties are and who owns them;they have no powers to enforce payment and some authorities do not even issue bills.Needless to say, the 20 municipalities in this beautiful Balkan country are not ingood financial shape.

The Eighth IRRV InternationalConference, held last month in Alicante, was a reminder that many countries aroundthe world are still struggling to establish a sound, well-financed system of localgovernment. The desire for local democracyis there, but often central government is unwilling to allow local councils any realpower or financial autonomy, and residentsdo not want to pay the true cost of localservices. Does this sound familiar?

Delegates heard some examples ofprogress and good practice, but also of manyproblems. Lithuania, though still making the transition from state to private ownershipof property, is one of the most progressivecountries. The Government has set up a central cadastral agency – a national land and property register used by manycountries. Lithuania’s State Enterprise Centreof Registers has designed an automated,

unified, national network of propertyinformation. It has developed a massvaluation system, produced land value maps,and is now ready to administer the valuationfor a new property tax for local authorities.

In Alicante itself there was good practice tobe seen at Suma – an organisation thatassesses and collects local taxes for the 140municipalities in the province. Spain has a devolved system of government, and some of the councils are very small. Having a“supramunicipal” organisation offerseconomies of scale and the ability to invest in staff and systems. Delegates had a tour of Suma’s offices and were impressed withtheir professionalism and use of the latesttechnology. Suma’s director, Jose Trigueros,explained they place a strong emphasis onboth customer care and staff training. Spainhas its own local taxation problems – asRamon Andarias and Manuel de Juan explainin their article in this issue (see page 16).

A fascinating account of the hugechallenges facing African countries was given by Riel Franzsen, Professor at theUniversity of South Africa. Many countrieshave reformed their local government and/ortheir property tax. Several other countries,including those such as Angola and Liberiawhich are emerging from wars, also want toreform. Often local authorities are too weakto apply legislation and collect revenue,Professor Franzsen said. Local people are notreceiving any services, so do not want to pay.

Professsor Franzsen has been involved in the setting up of the South African TaxInstitute (SATI), as a response to some of the more practical problems. SATIprovides training and technical assistance to tax policy advisers and tax administratorsthroughout the continent. Since 2002, 300 people from 19 countries have taken its courses and it has plans to expand.

Sessions by UK speakers attracted a lot of attention at the conference. There wasmuch interest in Northern Ireland’s local tax reforms, explained by Brian McClure,Head of Rating Policy Division at theNorthern Ireland Department for Financeand Personnel. Caroline Hopkins, Head of Revenue Services at East Riding ofYorkshire Council, told the conference about her council’s success in developingcustomer services, while it was no holdsbarred in the debate between IRRV Councilmember Tom Dixon and Paul Sanderson,Director of Modernisation at the ValuationOffice Agency. The motion was: “Thisconference believes that appeals should no longer be used as the main approach to determining correct assessments withinlocal property tax systems”. Paul spoke infavour of the motion, Tom against. Both put forward eloquent arguments but Paulwon a convincing victory. ■

Kate MIller is Managing Editorof the IRRV magazines

Kate Miller reports from the IRRV’sInternational Conference in Spain

THE GRANDTOUR

IRRV President John Roberts at the welcome recption in

Alicante’s Santa Barbara Castle

Nick Bradley, Managing Director of Philips Collection

Services, with IRRV Director David Magor

Photos: Richard Guy

apr05-ins-p11 conference 24/3/05 10:37 am


COVER STORY

Andy Burton explains why local councilsshould not throw away the opportunities provided by their council tax leaflet

EMPTYINGTHE BINS

apr05-ins-p12-15 C story 24/3/05 10:40 am


COVER STORY

Many in local government willagree that we do not promoteour services well. But what can

we do? We don’t want an army ofspin–doctors on the payroll, and our coffersare not big enough to employ the likes ofMax Clifford. In Bassetlaw, a citizen’s focusgroup was recently assembled to discusshow effectively council services arepromoted in the leaflet accompanying thecouncil tax bill. The group voiced thecommon complaint that all you get frompaying your council tax is the bins emptied.

A neglect of the media and other ways of promoting services, has meant this viewremains uncontested. Such complacency is not sustainable. Pensioners and others havehad enough of steep council tax increases.Tackling the inability of councils to explainproperly and coherently the range of servicesthey provide, would help dissipate thegrowing malaise surrounding local taxcontributions. In order to placate the placard-waving pensioner, we need to explain betterwhat we do with their hard–earned money.

In two tier areas, where four large-scaleorganisations share the revenue raised bycouncil tax, co-operative working is long

overdue. Bassetlaw District Council startedto address this issue in November 2003 byworking with the County Council, Police

and Fire Authorities to produce a jointcouncil tax leaflet for 2004/5. We urgentlyneeded to provide citizens with better accessto and understanding of services. Eachservice is now legally required to account forhow they spend any money allocated, and new legislation threatened a separate FireAuthority leaflet in 2004. In response, a project team produced an innovative joint council tax leaflet for the same year,aimed at overcoming confusion about who does what, particularly in relation to county and district services.

Market testing is most valuable when itresults in the improvement of something youalready have. With this in mind, we decided to market test the joint leaflet idea after,rather than before, we launched it. We usedour citizen’s focus group to gauge publicopinion about the leaflet, and how muchinformation the public expected from localgovernment. In March 2004 more than 900residents were asked if the council should domore to explain the different elements of thecouncil tax. The results that followed wereboth interesting and constructive.

Council Tax PaymentThe survey emphasised that while BassetlawDistrict Council administers the council taxbill, most of the revenue goes to the CountyCouncil. It asked if Bassetlaw should explain further the different demands made on the council tax. 63 per cent, themajority of those who responded, agreedmore explanation was needed in this area,rising to 77 per cent of the 25 to 34 agegroup. 20 per cent of all respondents saidthe council did not need to do more, and 16 per cent said they did not know.

In order to ascertain what the right vehicle

‘‘In order to placatethe placard wavingpensioner, we need

to explain better whatwe do with their

hard-earned money’’


to provide this information would be, thosesurveyed were asked if they would like the council to construct a single leaflet to replace the three leaflets that currentlyaccompanied their bill. The suggestion was well received, with 78 per cent ofrespondents preferring a single leaflet. Thissuggests the council tax is a confusing issue,and efforts to clarify how it is administeredand collected would be welcomed.

Council Tax InformationThe survey asked whether people read theinformation in the 2004 single booklet. 84per cent of respondents said they read theinformation, even if only occasionally, and25 per cent said they read it every time. The

propensity to read this information, and thefrequency with which citizens do so,increases with age; 33 per cent of over 65s always read it. However, 14 per cent of respondents said they never read theinformation, as there was too much (in the booklet in question and on the doorstepin general), it was not easily digestible and they were not interested in it.

Council Tax DistributionHaving equipped ourselves with a better ideaof how many and what type of people readthe leaflet, we tried to discover what level ofunderstanding there was of how council taxmoney is allocated. Were people aware theCounty Council received the largest slice?

It was revealed 15 per cent of respondentsthought council tax revenue went solely to the District Council, but 79 per cent didrealise it was also distributed elsewhere.Residents are often confused by the allocationof responsibility in a two–tier councilstructure, and a detailed knowledge ofrevenue distribution was scarce. When askedwhat proportion of every £1 collected goes toBassetlaw District Council, only one in everyfive respondents came close to estimating the actual amount of 10.37 pence per pound.Those surveyed were then presented with a list of services and asked whether they were provided by Bassetlaw District Council,Nottinghamshire County Council, or anotherbody (see diagram above). Knowledge of who


COVER STORY


was responsible for what fluctuated betweenservices. Almost all respondents knew whoensured their rubbish was collected, but only13 per cent correctly identified who makesprovisions for fire services.

We held a number of focus group

sessions where participants, having been sent the leaflet in advance, were asked similar questions to the ones in the survey.Most participants asked for a single leafletthat informed them of the services provided,particularly by the District Council as themost local. Relevant information, such as the phone number for the local tip, wasrequested to be made more prominent. The use of ‘jargon’ was criticised, withemphasis on the success of services being

seen as avoiding discussion on areas that need improvement. Points were madeconcerning style and visual aids. Strongimages, a contents, and an index were thought necessary to render the volume of information in a single booklet moreaccessible. Photos and bullet points wererecommended as a way to summarise and illustrate key projects, as were eyecatching images to help explain the division of council tax money. It was suggested some pages should include details of all fourorganisations, to give a financial overview.

We learned that if we get simple thingssuch as the council tax leaflet right, thefoundations will be laid for building a betterreputation for local government. The LocalGovernment Association (LGA) is workingon this with Market and Opinion ResearchInternational (MORI). The barriers are no longer there to prevent clearcommunication between councils and the public. The regulations governing the council tax bill and leaflet content are less prescriptive; we can include performancefacts imaginatively. And with council taxincreases being relatively low, we will meetless public resistance to our message. We know citizens only remember the bins – what other service visits every street

and household? Now we have a vehicle for change to rival the refuse lorry: the council tax leaflet. ■

Andrew Burton is Head of Revenues for Bassetlaw District Council


COVER STORY

‘‘Get simple things likethe council tax leafletright, and foundations

will be laid for building abetter reputation forlocal government’’

Picture (below): Bassetlaw local authority’s joint council

tax leaflet for 2005/06



Property valuation and taxationcentres round a cadastre in Spain: a centralised register, operated

by the national Ministry of Finance, for taxation purposes. It holds vitalinformation on the valuation of property,but this is not recognised in courts of law.Only two provinces, the Basque Region and Navarra, have their own cadastre; the rest depend on the central authorities.

The cadastre is an inventory of real estate,a record of the physical and economiccharacteristics of a property, and a registerof ownership. Its graphical databases allowproperties to be located, identified andallocated with a compulsory cadastralreference. For urban properties this 20 character code includes geographical co-ordinates. The cadastre also calculatesand stores value records for fiscal purposes.

The national property register is theresponsibility of the Ministry of Justice. A register of rights, it is independent from thecadastre, provides legal security in propertydealings, and is a free public informationservice. The work of the cadastre centres onthe cadastral parcel and cartography, whilethe register uses regulated informationsystems to record rights, titles and deeds

provided voluntarily by the interested parties.The cadastre and register are now closelyintegrated: both use the cadastral reference to identify properties, and use cadastralcartography as a tool for identification,localisation and description of parcels.

Spain uses the market benchmark method(MBM)of valuation, as it most accuratelyreflects variations in the urban market.

MBM is based on a representative number of market samples, which are extended tocover all real–estate properties on the basis of studies and models created from thesamples. Value is linked to market value and understood as a theoretical. The costmethod is also used to determine constructioncosts when calculating the value of land.

MBM was implemented by the definition of discrete cadastral value in the 1988 LawRegulating Local Finance Authorities, whichregulates the Spanish property tax. The Lawof the Property Cadastre states: “Cadastralvalue will be determined objectively for eachproperty on the basis of information availablein the cadastre and will be calculated on thebasis of the value of the land plus the value of the building constructed.

“The cadastral value of properties may notexceed the market value, understood as themost probable price at which a property, freeof all charges, could be sold in a transactionbetween independent parties. To this endmarket co-efficients will be set by ministerialorder of the Ministry of Finance.”

The calculation of cadastral value is very complex. Some of the factors are: the market value of collective residential real estate in an average building category, in a municipal area of average conditions;the type of use; construction materials; and socio-economic factors and urbanplanning in the area. After the market studyis completed, the local council have a say inthe approval of it and the valuations, but finalapproval is given by the cadastre. In order to achieve stability of cadastral values over

A PLACE IN THE SUNRamón Andarias and Manuel de Juan explainwhy the Spanish valuation system needs updating

‘‘In the last five yearscadastral values havefallen so far behind themarket the cadastre is

unable to effectivelyupdate its database’’

VALUATION VIEW

Photo: Richard Guy

apr05-ins-p16-17 val viewegov 24/3/05 10:43 am


Many local authorities (LAs)recognise the advantages oftaking their benefits services out

of council offices and into the community.Benefits buses, benefits road shows, andbenefits surgeries, all help boost take-up and make benefits more convenient for andaccessible to citizens. One of the ODPM’spriority outcomes for local e-government isto provide: “a mobile office service usingtechnology to offer processing of council tax and housing benefit claims directly fromcitizens’ homes”. Some councils achieve thisby arming benefits staff with mobile devices.

In 2003, East Riding of Yorkshire Councilintroduced personal digital assistants (PDAs),to help ease the interventions workload.PDAs allow remote access to the council’s Sx3 benefits system, but do not allow changesto be made in real time. The council, incollaboration with Sx3 partner Kirona, has also developed a new solution based on a tablet PC. Assessors use customised scriptsto guide claimants through the applicationform, and new information is uploaded to thecorporate system in real time. They can verifydocumentary evidence there and then, andcapture the claimant’s electronic signature.Only eight benefits assessors use the newmobile claims service, but East Riding says it is seeing improvements and plans to extendthe solution to interventions visits.

“The majority of paper forms submittedto us for new claims are incomplete and require further information from theclient,” says John Kirkman, benefits servicemanager at East Riding. “By visiting peoplein their homes, we avoid the toing andfroing you usually get with paper claims.”

Hartlepool Borough Council has alsointroduced a mobile solution based on Sx3.Benefits officers can process new housingbenefit claims at Housing Hartlepool, the

council’s largest registered social landlord,and can answer citizens’ queries at benefitssurgeries. John Morton, assistant chieffinancial officer for Hartlepool, spoke of plans to extend the tablet PC solution:“Doing home visits using tablet PCs willenable us to slash processing times and beat the national targets for benefitsassessments. In theory, if the customer has all the information we need, we’ll be able to process their claims on the same day.”

East Riding finds mobile benefits arehelping to boost take-up, but not everyone isreceptive. The change to mobile assessmentsinvolves a shift in perspective for benefits staffand customers. “Some people prefer to stickto paper claims forms,” says Mr Morton.“They may not like the idea of having abenefits officer in their house. We need topersuade people to use the mobile service as aaccess channel.” Hartlepool sees potential formobile benefits to boost opportunities forflexible working among benefits staff; staffcan work from home and access their visitingschedule remotely. It wants to introducebenefits calculations on tablet PCs, soclaimants can be told their entitlements.

Hartlepool and East Riding part-fundedtheir solution through the DWP’sperformance standards fund. 11 councilsrecently secured £1 million funding from the DWP to develop a similar solution based on Anite’s Pericles benefits suite. With the decreasing costs of mobile hardwareand software, the investment required formobile benefits isn’t huge, says Mr Morton,and councils will see a quick payback. “It will help us speed up our processing times and provide a service to the customer that is more convenient, more accessible and more efficient.” ■

Julie Hill is a freelance journalistspecialising in IT and e-government

ACCESS ALL AREASThe solution to taking services out of council offices and into the community ismobile devices, explains Julie Hill

E-GOVERNMENT

time, a market reference coefficient(currently set at 0.50) is applied to thetheoretical market value. Cadastral valuesin Spain stand at approximately 50 per centof sample market values.

As in the UK, in many areas of Spain the property market is growing rapidly. In the last five years cadastral values havefallen behind the market at such a rate the cadastre is unable to effectively updateits database. Reviews of cadastral values in municipal areas are by law only carriedout every ten years, and the situation isnow critical for local authorities. Cadastralvalue is the basis of calculation for themain local tax; the net amount is obtainedby applying a coefficient, fixed annually byeach local authority to the cadastral value.

The Law of Property Cadastre hasallowed cadastral values to be updatedannually since 2003, at a rate approved bythe Law of State Budgets. Local councils,keen to meet budget responsibilties withoutincreasing local tax, are putting pressure on the National Cadastre Office to updatevalues as it is essential new developmentsare registered in the database as soon asthey are active. The cadastral system mustwork effectively with municipal councils,which have a good knowledge ofbusinesses, residents, and the local propertyscene, and can track variations in localconditions. Provincial organisation, such asSuma, are also needed to ensure maximumefficiency, and gain economies of scale forthe municipalities in their area. ■

Ramón Andarias and Manuel de Juanare Local Taxation Officers in Suma,which administers local tax for 139 municipalities in Alicante province

apr05-ins-p16-17 val viewegov 24/3/05 10:43 am

18 Insight March 2005

EDUCATION

Aberdeen City Council (Course run by IRRV

Scottish Association) Aberdeen City Council,

Crown House, 27-29, Crown Street, Aberdeen

AB11 6HA

City & Islington College, Willen House

8-26 Bath Street, London EC1V 9PL

City & Islington College

444 Camden Road London , N7 OSP

Dudley College of Technology

The Broadway, Dudley

West Midlands DY1 4AS

(Technician course run by IRRV

West Midlands Association)

Distance Learning Centre, University of

Wales, Newport, Allt-Yr-Yn Campus,

PO Box 180Newport, NP20 5XR

IRRV

41 Doughty Street

London, WC1N 2LF

Lancashire & Cheshire area

Association

Bury College

Preston College

Fulwood Campus

St Vincent’s Road

Preston

PR2 8UR

West Lothian College

Almondvale Crescent

Livingston

West Lothian, EH54 7EP

COURSES LEADING TO IRRV EXAMINATIONS

The following chart lists the day-release, block-release and revision courses designed to prepare students for the

IRRV Technician and Full Professional examinations. Further details are available from the Course Co-ordinators.

Centre Name & Address Contact Details for Course Co-ordinator Courses Offered Mode of Study

Jacek Nowak

T:- 01224 346868 E:- [email protected]

Sarah Connell

T:- 01224 346951 E:[email protected]

Azmi Peerun, T:- 020 7614 0375

E:- [email protected]

Azmi Peerun, T:- 020 7614 0375


For Technician: Anne Bradbury

T:- 01902 696302 F:- 01902 696650


For Full Professional: Lindsay Whitlow


Les Tuckwell, Distance Learning, Centre Manager

T:- 01633 432388 F:- 01633 432567

E:- [email protected] W:- dlc.newport.ac.uk

Professional Services Department

Vaishali Joshi

T:- 020 7691 8995

F:- 020 7404 2630


Claire Jenkins, Education Liaison Officer, IRRV

Lancashire & Cheshire Association


or Mike Shang, Lancashire & Cheshire Association

Secretary T:- 01706 830323 E:- [email protected]

Eileen Astley

Head of Provision, H.E. & Professional

T: 01772 225398

E: [email protected]

Jennifer Stalker

T:01506-427950, 01506-418181

E: [email protected]

IRRV Technician:- Law of Council Tax

Law of Benefits, Benefit Administration

LAAF exam and assignment

Full Professional

Level 1 & 2

Full Professional

Level 1,2 & 3 Sept 2005

Technician

September 2005 – May 2006

Full Professional Levels 1,2 & 3

September 2005

Technician

Full Professional

Levels 1, 2 & 3

Technician

Technician

Revenues & Benefits Technician

Level 1,2 & 3

Technician level

Full Professional Levels 1-3

Technician programme

Part-time Evening course

(usually Mondays 5pm to 8pm starting in

September 2005)

Day release

Day release

Day release

Day release or

afternoon/evening

Distance Learning.

Students are provided with comprehensive

study material and tutor support.

Day release. The course runs over three termson alternate Wednesdays from September2005 until May 2006. Block Release.Thecourse runs over 3 week-long periods inOctober, January & March. Held inClevedon, NorthSomerset.

Day Release

Day release

Tuesday and Thursday evenings

REVISION COURSES

Course Venue Contact Details Date Course details

Autumn Revision Course Himley Hotel, Dudley Gary Watson To be confirmed Technician and Full Professional

(to be confirmed) T/F: 01376 329721 Levels 1, 2 & 3. Available on fully

E: [email protected] residential or day delegate basis.

Spring Revision Course Keele University (to be confirmed) Gary Watson To be confirmed Technician and Full

T/F: 01376 329721 Professional Levels 1, 2 & 3.

E: [email protected] Available on fully

residential or day delegate basis.

Scottish Revision School run by Ramada Jarvis Hotel, Perth Janette Proud Professional Level

the IRRV Scottish Association T:- 01592 413360 Students13th,14th &

E:[email protected] 15th May 2005

Or:[email protected] Technician Students

(College Based &

Distance Learners)

14th,15th May 2005

The Revision School runs in May every

year and covers all subjects in the

Technician course. It is open to students

attending the West Lothian College course

and to Distance Learning students.

Available on a fully residential or day

delegate basis.

COURSES 2005/2006

apr05-ins-p18-19 newmedu 24/3/05 10:45 am

Insight Month 2004 19

ABERDEEN

Music Hall, Union Street

Aberdeen, AB10 1QS

WEST LOTHIAN

West Lothian College

Almondvale Crescent

Livingston, EH54 7DN

DUDLEY

Conference Centre

Dudley College of Technology

The Broadway, DY1 4AS

LONDON

London House

Mecklenburgh Square

London, WC1N 2AB

NOTTINGHAM

The Hilton, Milton Street

Nottingham, NG1 3PZ

DUMFRIES

Report to:

Dumfries & Galloway Council

Carruthers House

English Street, DG1 2HP

BRADFORD

Communal Building

University of Bradford

Great Horton Road

Bradford, BD7 1DP

DURHAM

Old Library, Grey College

University of Durham

South Road

Durham, DH1 3LG

NEWPORT

Allt-Yr-Yn Campus

University of Wales College

Newport, NP20 5XR

PRESTON

University of Central

Lancashire

Vernon Building

Preston, PR1

IRRV Examinations

June 2005 –

Examination Centres

STUDENT MEMBERSNicola Bayes Benefits Assistant Scarborough B C

Clare Brewster Benefit Assistant Scarborough B C

Shane Buckley Benefits Manager Calderdale M B C

Clare Butterfield Rent Allowance Processor Wakefield M D C

Esther Chambers Team Leader Rhondda Cynnon

Taff C B C

Paul Ellary Benefits Group Leader Royal Borough of

Kensington & Chelsea

Suzanne Elliot Supervisor Corby B C

Gareth Evans Team Leader Flintshire County Council

Andrew Fowler Benefits Advisor Wigan M B C

Amanda Gibbons Visiting Officer Wakefield M D C

Samantha Gratty Quality Control Officer Wakefield M D C

Jennifer Griffiths Principal Benefits Officer Flintshire County Council

Colin Lewis Benefits Assesor Wigan M B C

Lisa Little Revenue & Benefits Trainer Corby B C

Clare Marsh Court Officer Dover D C

Louise Morritt Benefits Officer Scarborough B C

Mandongwe Council Tax Officer Wandsworth Council

Msimanga

Annabelle Pepper Benefits Assessor Amber Valley B C

Ruth Sherratt Visiting Support Officer Wigan M B C

Colin South Senior Income Officer Watford B C

Craig Stewart Revenues Officer Angus Council

Adam Verrill Benefit Assessor Scarborough B C

Nigel Webb Technical Benefits Assessor Borough of Poole

TECHNICIAN MEMBERSSharon Betts Revenues Manager IT Net plc

(LB of Hounslow)

Michelle Connolly Senior Recovery Officer Stockton on Tees B C

Alison Egan Billing Assistant Ipswich B C

Dawn Graham Benefits Manager South Cambridgeshire D C

Jane Higgins Benefit Officer Epsom & Ewell B C

Richard Hosken Senior Assesor Restormel B C

Bettina Kelly Team Leader Telford & Wrekin Council

Rebecca Low Benefit Control Team Manager Telford & Wrekin Council

Robert Mackay Revenues & Benefits City of Edinburgh Council

Admin Manager

Emma Metcalf Local Taxation Assistant Scarborough B C

Beverley Robinson Assistant Head of Rossendales Ltd

Enforcement Dept

Joanne Simmonds Service Manager Eden Brown

Mary Winter Deputy Benefits Manager Stevenage B C

AFFILIATE MEMBERSCarol Owen Manager L B of Lewisham

CORPORATE MEMBERSJohn Adamson Council Tax Officer Gedling B C

NEW MEMBERS

The IRRV would like to thankthe following companies fortheir sponsorship of theBenefits conference 2005:

Registration Area and Display Banners

Wine reception,Conference Dinner and Delegate bags

Directional Signage

apr05-ins-p18-19 newmedu 24/3/05 10:46 am


LEGAL CORNER

Paul Russelllooks at how the Court ofAppeal has madelife easier forrecovery officersby overturning a High Court decision

L egal Corner in October 2004 Insight,featured the effect of the LimitationAct 1980 on recovery action, after a

recovery action had been issued. The articlelooked at the effect of section 24 on theLimitation Act 1980. The section had been thesubject of a High Court decision, Re a Debtor(No 50A-SD-1995) (1997), which held that astatutory demand was an ‘action’ for thepurposes of s.24, and can not be issuedregarding a judgment more than six years old.

The wording of s.24(1) is: “Time limit foractions to enforce judgments: (1) An actionshall not be brought upon any judgment afterthe expiration of six years from the date onwhich the judgment became enforceable.”The decision in Re a Debtor seemed logicaland has been regularly cited in the lowercourts particularly. However, the principleestablished in Re a Debtor has now, in effect,been overturned by the Court of Appeal.

Ridgeway Motors (Isleworth) Ltd v ALTSLtd (CA) was heard before Lords JusticeBrooke (Vice-President of the Court ofAppeal (Civil Division)), Mummery andScott-Baker. The case centred on if s.24(1)limited the issue of a bankruptcy petition towithin six years from the date of judgement,in favour of the creditor ALTS Ltd.

Mummery LJ held that: “An action upon ajudgment [should be] treated…as having thespecial or technical meaning of a ‘fresh

action’ brought upon a judgment in order toobtain a second judgment, which can beexecuted. Insolvency proceedings, whetherpersonal or corporate, do not fall within thescope of the special meaning of an actionupon a judgment.” He concluded by saying:“The only ruling necessary for the disposal

of this appeal is that the presentation of awinding up petition by a judgment creditoris not subject to the six year limitationperiod applicable to bringing an action upona judgment within s24(1). The same rulingapplies to the presentation of a bankruptcypetition.” He stated enforcing payment of ajudgement debt was not time–limited bys.24(1) in any way, and if Ridgeway Motorswished to avoid the consequences of thesituation they could, either by satisfying thejudgment or, if unable to do so, by taking

CHANGE FOR THE BETTER

‘‘Mummery LJ statedenforcing payment of ajudgement debt was nottime–limited by section

24 (1) in any way’’

apr05-ins-p20-21 Lcorner2 24/3/05 2:49 pm

steps open to a company unable to pay its debts (meaning petitioning for thewinding-up of the company). All the judges agreed with the lead judgment.

The effect of this judgment on the recoveryof debts such as council tax, non-domesticrate, and excess benefit, is that once aliability order (LO) has been made by the magistrates’ or county court, or a HighCourt judgment made against the debtor, no time limit is imposed by the LimitationAct 1980. There cannot be any allegation of an ‘abuse of process’, which can includeunnecessarily protracted delays in seeking to enforce payment. The lower courts areunlikely to strike out enforcement action on debts more than six years after a LO orjudgment for this reason, provided the courtis reminded of the decision in Ridgeway.

Once a LO or judgement has beenobtained (which must be within six years of the debt becoming due and enforceableby law), there is no time limit within whichdistress, execution, attachment of earnings,deduction from benefits, application for a charging order (or for the sale ofthe property to discharge the order), an attachment order (garnishee), a statutorydemand, a bankruptcy or winding-uppetition etc may be issued. I hope this articlewill cause recovery officers to breathe a sigh of relief. Even in the best managed

authorities, there will be debts which they have been unable to collect and could otherwise have been ‘statute barred’.

I did not list committal for non-payment as an area of recovery. I know somepractitioners believe committal is a lost cause as many magistrates’ courts have takena spineless approach to what should be aneffective method of collection. The problemsof serving warrants of arrest over the last ten

years have exacerbated the difficulties.However, many local authorities are still

using committal action most successfully. It came as something of a shock when R v Warrington BC ex parte Barrett (QBD)1999 held that committal action should notbe continued more than five years after the

year in which the debt accrued.Warrington was heard before Mr Justice

Turner. The reasoning behind his judgementwas: “nearly the limitation period forrecovery of a debt in civil proceedings”. It occurs to me Ridgeway Motors also has a bearing on committal. If there is nolimitation on seeking to recover a debt forwhich a LO or judgment has already beenobtained, whether through the courts or by way of the ‘self-help’ remedies of distress,AEO or deduction from benefits, then thereshould be no limitation on taking committalaction. Clearly, magistrates may still exercisethe option to remit the older debts, as wasmooted in Warrington, as well as in R v Glocs jj ex parte Daldry (QBD) 2000, on account of their age.

For those of you who are local authoritypractitioners who, following my article in October 2004, changed their authority’srecovery/write-off policy, you may wish to consider a further review in the light of the decision in the Ridgeway case. But you may have better things on which to concentrate! ■

Paul Russell LLB IRRV is an independentlaw consultant and trainer

Email: [email protected] views given in this column are personal views

and should not be construed as legal opinion


LEGAL CORNER

‘‘I hope this article will cause recovery officers to breathe a

sigh of relief. Even in thebest managed authori-

ties there are debtswhich they have been

unable to collect’’

23/06/05Dydd Iau 23 Mehefin 2005Cynhadledd IRRV Cymru

Thursday 23th June 2005IRRV Wales Conference

Am fwy o fanylion cysylltwch a’r Ysgrifennydd

For further details contact the Secretary

Islwyn Lewis-Jones on 01492 531345e-bost/e-mail [email protected] N O D D W Y D G A N

S P O N S O R E D B Y

Gwesty’r Metropole HotelLLANDRINDOD WELLS POWYS

apr05-ins-p20-21 Lcorner2 24/3/05 2:49 pm


BENEFITS

A t the recent Benefit Conference inHarrogate I gave a paper on thefuture of benefit administration.

Never before have we faced a future asuncertain as it appears at present. TheConservatives have announced plans to allowpensioners large rebates from council tax; theLiberal Democrats have embraced the idea ofmaximum liability; while the Governmenthave yet to be clear on their policy proposals.

A few months ago I discussed changes tomodernise council tax benefit. I still believethe current means test system is a good one. Itdoes exactly what it says: determine liabilitybased on ability to pay. While I one day hopeto be a pensioner for some years, I do notthink the system should be altered for them.Someone with a large second income orcapital is not more worthy of tax reductionthan a family claiming tax credits.

The real weakness in the system ofmaximum liability, is the proposal to take benefit work away from localauthorities and place it with the Pension

Service (PS) and Inland Revenue (IR). Theremany stories concerning mistakes, such asnon updated records and incorrect noticesbeing issued, but for the most part the IR isan effective tax collector. However, thebranch of the IR dealing with tax creditsdoes not deliver as satisfactory a service.

The IR notify a customer of the amountthey will receive some months after tax creditsare claimed. The IR give an estimate of thefollowing year’s award, as an exact amountcan only be calculated at the end of the yearwhen the claimant’s case has been reviewed. A letter is then sent detailing all income andconfirming there is no change. It must besigned and returned by the next September, or a letter is sent in December stating thepayments have stopped, and overpayment mayhave occurred as the claimant has not beenentitled to credit since April. The comedianBob Newhart could not come up with such a laughable routine. I am interested to knowhow the IR intends to recover the largeoverpayments that have occurred. Ludicrous

situations are arising where claimants havechanged partners and overpayments cannot be offset against new awards. Often customersdo not know how much, or why, they arebeing paid.Should the IR be given anotherscheme while the tax credit one is messy toadminister and hard to understand?

The PS is also a concern as, after less thantwo years in operation, it is the subject ofa major administrative review. Pension creditswere new and needed new administration,but the radical nature of the proposedchanges makes me doubt they got it right thefirst time. Pension credits confuse customers,and local councils cannot provide reassuranceas the PS seem unable to respond to queriesconfidently. The reviews of the assessedincome periods will reveal the success of thePS, however some calculation errors will notemerge until then. We must wait and see ifthese errors will be recoverable payments. It is too early to consider handing over otherschemes, or increasing the PS’s workload,until the reviews are complete and we knowthe system works.

While local authorities (LAs) still bill and collect local tax, they need to be told themaximum liability in order to issue bills. InScotland, bills are prepared in early February,with the rest of the UK following a few weekslater. We had pension credit (savings creditonly) cases uprated in December, but werestill getting information changes from Apriluntil February; pensioners have probably beenissued bills in need of reassessing. The IR arenot carrying out their amendments until July,and it is not clear how many customers willneed new bills after changed circumstanceshave been assessed. Once again, one bill willbe determined just in time for the next one to go out, and this will have a negative impacton LAs. The administrative and financialimplications for them will be particularlyinteresting, and could be even worse than the present system.

There has been no reference to those who donot submit a return to the IR or claim pensioncredit. They could continue to claim directlyto LAs, resulting in pointless bureaucracy. It is naïve to assume all pensioners fall in to one box or the other, or all working agepeople in need of help claim tax credits. I agree with the argument for the maximumliability being calculated outside the billingauthority, that customers do not need to claimtwice. But instead of constructing a flawedscheme, benefits should be integrated intoLAs. We are local, good at what we do,experienced, and could operate the system farbetter than the other agencies. ■

Julie Holden is Head of Revenues and Benefits atTandridge DC and Chair of the IRRV Benefits Faculty

READY FOR ACHALLENGEJulie Holden explains why localauthorities should be trusted with more services

apr05-ins-p22 benefits 24/3/05 10:48 am

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