89,950 people behind with council tax
Jan 8 2009 by William Green, The Journal
NORTH East town halls have launched legal action against nearly 90,000 households to collect unpaid council tax – and the figure is predicted to soar as the recession deepens.
Some 89,850 people received a court summons over the past year after falling behind with payments, with bailiffs dealing with 30,247 cases and councils filing for bankruptcy against 114 households – although orders were not made in all instances.
Nationally, more than 1.2 million people received a court summons with bailiffs calling on nearly 600,000 defaulters.
Councils filed for bankruptcy against 1,706 people, allowed where more than £750 is owed, according to the Liberal Democrats who obtained details from more than 170 authorities under freedom of information rules.
The Lib Dems are now urging restraint amid the economic gloom, although council chiefs insisted they took a “sympathetic line” with genuinely struggling residents with bailiffs and court action only being a “last resort”. But they warned even more families could hit trouble if the recession deepens this year.
Carol Woods, Lib Dem deputy leader of Durham City Council, said: “It is very serious and we do need to be sympathetic in these really difficult financial times. I do think it could get worse with more people struggling to pay, especially if we lose more jobs in the North East and Durham.”
Struggling residents should contact the local authority to see what help was available, she said.
Blyth Valley Council leader Dave Stephens said: “The collection of council tax is one of those areas we have got to be sensitive while at the same time doing the job of collecting the money.”
He said residents with genuine difficulties could be helped through benefits and providing key information, but added some people saw non-payment as a “matter of pride”.
The process to collect council tax arrears took several months with court action and bailiffs a last resort, added the Labour council leader.
Jayne Henderson, head of revenues and benefits at Newcastle City Council, said a reminder was issued before further “appropriate” steps – which could eventually include an application for committal to prison or bankruptcy.
She said the council would check to ensure any taxpayer in difficulty had any discounts they were entitled to and would seek an arrangement to pay over a reasonable period as well as promoting benefit take-up. Newcastle Council said £11.7m of council tax was yet to be collected by the end of this current financial year and expected to see £4m remain unpaid, but promised collection as soon as possible in following years.
Its latest figures show 32,267 summonses were issued in 2007-08 compared to 25,587 in the current financial year – with many people paying at this stage with no need to go to court.
Newcastle Labour councillor Sir Jeremy Beecham, Local Government Association vice chairman, said: “Councils have a duty to all council taxpayers in their area.
“Were collection rates to dip, it would mean that council tax would have to rise for everyone simply because a few didn’t pay,”
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