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Don't attempt to simulate domestic rates (#1248)
* Don't attempt to simulate domestic rates Fixes #1247 * Assume 0% domestic rates growth * Remove old test * Update tests
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changelog_entry.yaml

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- bump: patch
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changes:
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fixed:
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- NI domestic rates taken as reported.

policyengine_uk/parameters/gov/economic_assumptions/yoy_growth.yaml

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@@ -310,3 +310,20 @@ ofwat:
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href: https://www.ofwat.gov.uk/price-review/
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- title: Ofwat 2025-26 media statement
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href: https://www.ofwat.gov.uk/average-bills-2025-26-press-statement/
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finance_ni:
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domestic_rates:
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description: Domestic rates year-on-year growth.
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values:
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2024-01-01: 0.050
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2025-01-01: 0.047
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2026-01-01: 0.0
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2027-01-01: 0.0
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2028-01-01: 0.0
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2029-01-01: 0.0
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2020-01-01: 0.0
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metadata:
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unit: /1
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label: domestic rates growth
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reference:
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- title: Finance NI (based on outturn)
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href: https://www.finance-ni.gov.uk/

policyengine_uk/tests/microsimulation/reforms_config.yaml

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parameters:
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gov.hmrc.child_benefit.amount.additional: 25
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- name: Reduce Universal Credit taper rate to 20%
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expected_impact: -37.7
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expected_impact: -36.5
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parameters:
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gov.dwp.universal_credit.means_test.reduction_rate: 0.2
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- name: Raise Class 1 main employee NICs rate to 10%
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expected_impact: 12.3
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parameters:
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gov.hmrc.national_insurance.class_1.rates.employee.main: 0.1
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- name: Raise VAT standard rate by 2pp
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expected_impact: 19.4
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expected_impact: 18.8
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parameters:
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gov.hmrc.vat.standard_rate: 0.22
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- name: Raise additional rate by 3pp

policyengine_uk/tests/policy/baseline/gov/local_authorities/domestic_rates.yaml

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policyengine_uk/variables/gov/local_authorities/domestic_rates.py

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@@ -7,17 +7,3 @@ class domestic_rates(Variable):
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definition_period = YEAR
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value_type = float
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unit = GBP
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def formula(household, period, parameters):
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rates = parameters(period).gov.local_authorities.domestic_rates.rates
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local_authority = household("local_authority", period)
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rate_defined = pd.Series(local_authority.decode_to_str()).isin(
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rates._children
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)
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percent = np.zeros(household.count, dtype=float)
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if any(rate_defined):
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percent[rate_defined] = rates[local_authority[rate_defined]]
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main_residence_value = household("main_residence_value", period)
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return percent * main_residence_value
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else:
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return 0

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