(IS) IN COUNCIL TAX IN SCOTLAND AND ENGLAND.
Introduction
5.1 This chapter examines the use of Information Technology and Information Systems in the council tax processes in Scotland and England.
5.2 The extensive use of IT and IS is essential if the complex legislation and processes associated with a local taxation collection, recovery and enforcement system are to be properly administered and efficiently executed.
5.3 The pace of development in the IT/IS fields has more than matched the expanding needs and requirements of the users. As an example, the facilities of document imaging and workflow have enabled the management of data and documents through the widespread centralisation of billing, collection and recovery of council tax and of housing and council tax benefits administration, whilst allowing enquiry and assessment facilities to operate in a de-centralised structure. The development of these IT/IS facilities has enhanced the potential for local provision of these services with greater reliability of, and access to, up to date information at remote locations. The workflow and document management facilities also considerably enhanced the administration and management of these functions, which can produce major economies and efficiencies.
5.4 In 1997/8, the vast majority of English local authorities had stable computer systems, operating to English legislative requirements. Many Scottish local authorities were either in the process of converting to or using newly installed systems that had been adapted from English systems in order to meet the principal needs of Scottish local authorities and were undergoing review and consolidation.
Reorganisation
5.5 Reorganisation led to the dissemination of IT facilities amongst unitary authorities and to inevitable learning curves for the new authorities. On break up of the former Regional Councils, the IS/IT facilities were transferred to the major successor Unitary Authority who in some cases continued to supply the council tax and residual community charge systems to the other, new, unitary authorities. Not always though were the existing systems ideally placed for agency service and problems quickly became apparent, so that each of the new unitary authorities began to examine the potential for installation of their own systems.
5.6 The difficult IS/IT position was further exacerbated by the need to integrate the housing benefits systems from the former district councils and the council tax benefits systems from the former regional councils. Additionally there was the need for inexperienced staff to learn, rapidly, the demands and limits of the existing, unfamiliar, systems.
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5.7 In some instances following reorganisation, the former Regional Council computer service provider continued to provide that service to unitary authorities, using either in-house software or externally provided software, in the hands of the major successor unitary authority.
In other instances the unitary authority has sought to provide the service itself from the existing facilities of one or more of the former district councils. In other instances, the software was provided by a software house and the service provided by either the in-house service provider or by the former Regional Council service.
5.8 Added to these variations in service provision was the issue of the use of a mixture of housing and council tax benefit systems, some inherited from the former Regional Councils and some from the former district councils. Tables later in this chapter illustrate the range and multiplicity of systems used by the unitary authorities to supply systems to their users (the revenues and benefits administrations) and the many permutations between revenues and benefits systems.
5.9 The wider the range of software suppliers, the greater the complexities associated not only with supply of an efficient and effective IT service by the service provider, but also in using and exploiting the systems to best effect by the users.
5.10 The problems associated with reorganisation and the preparation for disaggregation of functions following reorganisation were regarded by many Scottish respondents in interview as inhibiting the development of IT/IS facilities during the period 1997/98.
The impact of IT/ IS on council tax functions
5.11 One research team member, having formerly been a software developer with a major computer supplier to the public sector points out that, from practical experience gained in developing both community charge and council tax systems, the recovery and enforcement processes are the most complex parts of the revenues computer systems. Because of their complexity, they are generally last to be properly compiled and installed. Lack of reliable software for recovery and enforcement processes reduces confidence of users in the reliability of available data; some practitioners suggested that because of this lack of confidence, rather longer and more complex manual processes had to be implemented in the short term. Some Scottish authorities did not have any major problems in these respects, but those which were affected experienced difficulties in operating the recovery and enforcement cycles. Three authorities did not submit applications for Summary Warrants at all within 1997/98 due to computer problems, and other Scottish respondents reported significant difficulties with their systems that pushed back recovery and enforcement timescales:
Ò Our IT facilities have had a dramatic impact on our collection performance Ð our first reminders could not go out until September 1997 and Summary Warrants were not applied for until early 1998Ó.
Ò We suffered a 10% loss in the year of IT conversion [1997]. Recovery was on hold from October 1997 to August 1998; we had no computer processing for three months [October 1997 to January 1998]Ó.
5.12 It is interesting to compare these responses with those made by two Welsh authorities.
These councils solely undertook aggregation of functions due to reorganisation (see chapter 2 paragraph 11), whereas most Scottish authorities also faced disaggregation of functions (only one English authority faced aggregation, and none faced disaggregation). Whilst the two Welsh authorities only faced some of the difficulties that reorganisation presented Scottish authorities, they both commented that ensuing IT problems had marked effects on council tax collection:
Ò IT has had a huge impact. Three IT systems had to be incorporated on reorganisation and months of processing work were lost in the chaosÓ. [This authority achieved a collection rate in 1997/98 almost 3% below the Welsh average figure].
Ò An IT system move (combined with an office move), shortly after a few reminders were sent out, led to significant delays. We are still catching up on the lost revenues it causedÓ. [This authority achieved a collection rate in 1997/98 4.5% below the Welsh average figure].
5.13 One other Welsh authority revenues officer, who rang to apologise for not being able to return the questionnaire for the survey, said that a difficult IT changeover meant that his authority was [at that time in 1999] without any processing capability and were unable to access any information stored on computer, and would be for some time to come; this mirrors the situation faced by several Scottish councils.
5.14 IT systems also impacted significantly in Scotland with respect to the ease with which some authorities could process special payment arrangements (which are discussed in greater detail in chapter 4 paras. 48-50), because the software specifications meant that these arrangements required manual processing. As one authority described:
ÒWe had over £1 million in arrangement money promised last year [1998/99]; for many in long-term arrears it is the best way to get them to pay. But arrangements are resource intensive for us because we have to check each case manually on a regular basis to see if the arrangement is being kept up by the debtor. That is because the computer system will not deal with special arrangements for cases once a summary warrant has been granted.
We are trying to change this. WeÕve written a specification for the Software Company and they hope to develop the software to deal with this situation within a year.Ó
In-house and external suppliers
5.15 In Scotland, the proportion of local authorities using in-house systems compared with the use of systems supplied by software houses is much greater than in England and Wales. From the samples taken in the survey, and from information supplied in the questionnaires, only three
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English or Welsh local authorities used in-house systems for council tax compared with 14 Scottish local authorities using in-house systems for that function.
5.16 This is most significant, however, only if taken in the context of provision by software houses of suitable systems to meet the requirements of Scottish Law and council tax collection practices and procedures. Interviews with two Scottish authorities revealed that in the practitionersÕ opinions, two software companies had serious shortcomings in their product, in terms of being able to address the needs of Scottish councils. Another reported that whilst their provider provided a core package, there were many additional important items that had yet to be incorporated into the system. Four respondents were of the opinion that software houses were slow to realise the requirement for council tax systems specific to Scottish needs, and those systems that were provided were by and large adaptations of the systems provided specifically to meet the legal and administrative requirements of English local authorities. Their Inadequacies were in some instances still creating problems for their users in Scotland in 1997/98:
ÒThe ability of this Council to effect any recovery processes during 1997/98 was entirely hampered by the inability of the software supplier to deliver clearly specified working software on time. This had a serious impact on the CouncilÕs statutory PI [performance indicator] on Council Tax collection for 1997/98Ó.
ÒWe are still waiting for contracted enhancements to our system. We need upgrades to the collection facilities to allow more variety of payment methods. We have plans for a debt management system to be able to collect multiple debt via direct debit.Ó
ÒOur software does not provide effective management of the Income Support caseload [attachment of benefit]; it does not provide a link with Sheriff Officers; it does not allow sufficient instalment management because we cannot make instalment adjustments subsequent to Warrant action being taken; it does not allow targeting of particular cases, for example, debtors who have paid previously by earnings arrestment; it does not allow us to identify whether someone who is in debt paid previously by direct debit; it does not allow us to identify bank account details of a previous payer who is now in debt; and it does not allow flexible report writing.Ó
5.17 The following comment reveals the Ôflip-sideÕ to frustrations felt by one authority with their externally supplied council tax revenues system:
ÒWe got burnt with developing our community charge system in-house, so there was no way weÕd go that route again. For all the problems of breaking in an external package, itÕs no where near as bad as going it alone from the start.Ó
5.18 Despite the view expressed above, it is worth noting the comment made by Kneen and Travers91 in relation to the implementation stages of council tax:
91 Page 31 of ÒImplementing Council TaxÓ by Pat Kneen and Tony Travers sponsored jointly by the Joseph Rowntree Foundation and the Local Government Chronicle Ð published by LGC Communications 1994.
ÒIt would appear that those who were dependant upon external suppliers had a more difficult time, partly because of the orientation of the software houses to the dominant English market. There was no software available which was designed specifically to meet Scottish requirements and the Scottish users had to make do with often imperfect adaptations of English software.
5.19 Interviewees using in-house packages were generally less expansive about aspects of their software packages. Analysis of the survey data could not identify any trend in collection rates regarding the use of in-house developed packages or externally supplied packages. Seven of the fourteen authorities using in-house systems had in-year collection rates below the Scottish average, and seven above. All four authorities using one particular supplier had collection rates above the national average, as did two councils using a different supplier, and one authority using another software provider. Authorities using other software suppliers achieved a range of collection rates above and below the national average.
Embracing new information technology
5.20 The findings from the sample groups suggest that Scottish local authorities have been slower than their English and Welsh counterparts in embracing the new technologies of document imaging, document management, workflow etc. From the information supplied by 30 Scottish and 20 English and Welsh councils the following table gives the relative number of councils using each of these technologies:
Table 25
Use of different types of document systems within survey groups in Scotland and England in 1997/98
England Scotland
Facility Out of 20
Councils Out of 30
Councils
Document Imaging Systems 8 1
Document Management Systems 4 2
Workflow Systems. 4 1
It is clear however from the interviews that Scottish local authorities are rapidly reversing this situation and since 1997, several Scottish local authorities have undertaken feasibility studies for acquisition of new facilities including the latest document and workflow systems and some have begun installation and implementation of their new systems.
Progress since reorganisation
5.21 However, even given these problems, there has been considerable action and it has been possible to draw up specifications of requirements and to make considerable progress with the software houses over provision of systems specific to Scottish law and practice requirements.
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5.22 In interview, a few of the Scottish revenues officers were of the opinion that there had been substantial improvements made to the IT/IS provision both by internal suppliers and by software houses since the baseline research year of 1997/98. The improvements centre on the provision of system enhancements and upgrades.
5.23 The result of this considerable activity has been that some of the software suppliers are working closely with their potential or actual customers on the new software which, in most instances, will enable the users to exploit the facilities now available in information systems and facilities. Several users have recently begun procurement exercises in relation to document image systems incorporating document management and workflow.
5.24 The activity has not, however, been confined to external software suppliers, as some unitary authorities are now re-examining their in-house systems to determine whether or not they meet modern requirements of their users with a view to rewriting those systems as necessary or are seeking to purchase systems being developed and supplied by external software houses.
Comparative analysis of use of IT/IS
5.25 The following tables set out the extent of the differences in the use and exploitation of IT/IS services and facilities between Scotland and England and Wales:
Table 26
Use of IT/IS services in Scotland and England
Category Scotland:
% of 30 councils within category
England:
% of 20 councils within category Computer Hardware
Unix based system 40 25
Mainframe based system 60 75
100 100
Computer Service Provider
In-house service provider 43 75
External service provider 57 25
100 100
Benefits Software
2 types of software used 30 Nil
Different from Billing software 33 15
Council Tax Software
Inherited Software 90 Nil
New Benefits & Council Tax 20 10
Installing combined benefits 17 10
Installing new software 13 10
Migrated to new software 10 10
Migrating from start of year 3 Nil
Software Functionality
Said to be fully functional 3 5
Said not to be fully functional for
:-Housing Benefit 13 Nil
Council Tax 7 Nil
All Benefits & Council Tax 7 5
Using Tele- Collection
In-house call centre 30 15
External Call centre 13 5
5.26 The next two tables set out the percentages of local authorities in Scotland and in England and Wales using systems from the various suppliers of software for council tax, housing and council tax benefits administration.
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Percentage of 30 Scottish local authorities using the listed software providers in 1997/98:
Software House Council
Percentage of 20 English local authorities using the following software providers 1997/98:
Software House Council
5.27 From analysis of the data contained in Table 26, it can be seen that there has been a higher level of stability of hardware and software usage in England. Twice as many sample authorities in Scotland were installing new benefits and council tax software in 1997/98 as in the English sample. All of the Scottish sample were running two types of benefits software (which in the view of the research team can give rise to interface difficulties), as compared with none of the English sample. The benefits software used differed from the brand of billing software used
in twice as many of the Scottish sample as in the English; the use of different systems again suggesting to the research team a greater scope for interface problems. Thirteen percent of Scottish authorities reported that their housing benefit systems were not fully functional, compared with no English sample authorities. It is the research teamÕs view that this has provided the benefit to local authorities of enabling them to exploit those systems to full advantage and to exploit opportunities presented by advances in IT and IS technology.
5.28 It can also be seen that a high proportion (40%) of Scottish authorities operate Unix based operating systems, which is the system offered by a number of suppliers. It is the view of the research team from past experience of such systems that they require specific report writing skills to ensure that meaningful management reports are generated. It is important that appropriate training is provided to appropriate revenues staff to enable the production of good quality reports. Whilst respondents did not report specific problems relating to this issue, the research team is of the opinion that the difficulties experienced by several authorities in generating information for the research survey returns indicates that the relevant report writing expertise may be limited.
5.29 Tables 27 and 28 indicate that a very high proportion of Scottish councils use in-house systems, while very few of the English councils do so. The overall proportion of English authorities using in-house systems is probably a little higher than the sample reveals, but still significantly lower than for Scotland.
5.30 Now that Scottish local authorities are operating in a more settled environment post re-organisation, it is anticipated by the research team that they will be able to reap the benefits of bedded-in systems, of systems enhancements and new advances in IT and IS development.
Summary
5.31 Overall, Scottish local authorities have faced major issues over IT and IS provision during the post-reorganisational period. In particular they have faced a lack of provision of Scottish specific software by some of the software houses and the failure of some in-house systems to cope with the change from Community Charge to Council Tax. In addition there have been major changes to the administration of housing and council tax benefits through the aggregation of systems since the abolition of the regional and district councils which have been impossible to encompass because the local authorities who administered these benefits previously did so separately. It is the conclusion of the research team that computer problems have contributed to lower collection rates in Scotland in the study year of 1997/98; it is not
5.31 Overall, Scottish local authorities have faced major issues over IT and IS provision during the post-reorganisational period. In particular they have faced a lack of provision of Scottish specific software by some of the software houses and the failure of some in-house systems to cope with the change from Community Charge to Council Tax. In addition there have been major changes to the administration of housing and council tax benefits through the aggregation of systems since the abolition of the regional and district councils which have been impossible to encompass because the local authorities who administered these benefits previously did so separately. It is the conclusion of the research team that computer problems have contributed to lower collection rates in Scotland in the study year of 1997/98; it is not