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Scottish/Welsh council tax ~20% above devolved budget figures; WAS owned_land imputation unstable across releases #448

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@vahid-ahmadi

Two data-quality issues surfaced while auditing the geographic results of the council-tax-to-LVT paper (PolicyEngine/uk-lvt-paper). Both materially distort nation-level distributional results.

1. Scottish and Welsh council tax overstated

On enhanced_frs_2023_24.h5@1.55.10 (2026, policyengine-uk 2.88.20), modelled council_tax aggregates by nation:

Nation Model gross Model net Official comparator
England £53.8bn £50.5bn ≈£45.6bn requirement 2025–26 (within a few % once uprated to 2026–27)
Scotland £4.8bn £4.0bn ≈£3.1–3.4bn
Wales £3.3bn £3.1bn ≈£2.4–2.6bn

The same pattern holds on enhanced_frs_2024_25.h5 (Scotland £4.3bn gross). Scottish and Welsh liabilities run roughly 20–30% above devolved budget figures while England is close. Average modelled net bill in Scotland (~£1,458) is implausibly near England's (~£1,872) given Scottish band D (~£1,421 in 2024–25, ex-water) and Scotland's band distribution being skewed to A–C. Possible causes worth checking: band-rate averages for Scotland including water/sewerage charges, or the VOA/SAA band calibration weighting.

Downstream effect: any reform crediting households with their abolished council tax (e.g. an LVT swap) overstates Scottish/Welsh gains by £200–300/household/year — enough to flip marginal constituencies from loss to gain.

2. owned_land (WAS direct land holdings) is large and unstable across releases

household_land_value = property_wealth × λ_r + owned_land. The owned_land component:

Release UK total Wales avg/hh Wales share of Welsh household land Scotland share
enhanced_frs_2023_24@1.55.10 £0.67tn £53,548 43.6% 27.6%
enhanced_frs_2024_25 (local) £0.46tn £11,680 9.8% 31.7%

A 4.6× swing in average Welsh direct landholding between adjacent releases points to a handful of large WAS farm/estate records being imputed into different donors each time. At £0.46–0.67tn this is 9–12% of household land — not noise. Suggest: winsorising the WAS land-value donor variable, imputing it separately from the main wealth block, or at least a regression test on nation-level owned_land aggregates.

Related: PolicyEngine/policyengine-uk#1808 (NI land intensity 0.673). Context: PolicyEngine/uk-lvt-paper#4.

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