Council tax dodgers owe millions

Tuesday 9th September 2008, 12:00PM BST.

Picture courtesy Rui Viera / PA WireHouseholds across Shropshire and Telford & Wrekin have dodged paying council tax bills totalling more than £3 million, according to new research today.

But the figure for the past year was down on the previous 12 months.

Across Britain the amount which remained uncollected stood at more than £745 million, the study of 400 councils by the GMB Union has revealed.

Telford & Wrekin Council was still owed £1,125,000 at the end of the 2007/08 financial year, while the biggest amount outstanding in the “county” area was for Oswestry at £561,000.

The total for Shropshire and Telford & Wrekin was £3,116,000, compared to £3.4 million previously.

Glasgow topped the national league table with almost £22 million of uncollected council taxes, followed by Birmingham (£16 million), Edinburgh (£13 million), and Manchester (£12 million).

Pat Mansfield, Oswestry Borough Council portfolio holder for finance and human resources said that current economic problems could be partly to blame for the amount of uncollected tax.

“In this economic climate business rates are prone to be left a little longer,” he said.

At Shrewsbury and Atcham, where £481,000 tax remained unpaid, Andy Goldsmith, assistant council manger, said that the authority monitored collection rates very closely and prided itself that its performance was in the top quartile nationally.

Generally across Shropshire the figures were good and the amount collected in the borough last year was 98.8 per cent.

Mr Goldsmith said the council worked closely with people who had difficulty in paying, but with those who deliberately tried to avoid paying their bill, it took a “robust approach”.

Action could involve instructing bailiffs to recover the amount owing.

Brian Strutton, national officer of the GMB, said: “While showing some improvement, the amount of council tax uncollected remains stubbornly high.

“Well over £700 million remains permanently owed to local authorities in England, Wales and Scotland.

“This money is urgently needed by councils to provide necessary services, particularly to the elderly and vulnerable.”

WHERE WE STAND NATIONALLY:

Uncollected council tax in Shropshire for 2007/08 and position of councils in national table of 354 authorities:

  • Telford & Wrekin £1,125,000 (162)
  • Oswestry £561,000 (288)
  • Shrewsbury and Atcham £481,000 (310)
  • Bridgnorth £410,000 (324)
  • North Shropshire £356,000 (332)
  • South Shropshire £183,000 (349)

The top four in country

  • Glasgow  £22 million
  • Birmingham £16 million
  • Edinburgh £13 million
  • Manchester £12 million

By Dave Morris


  1. 1
    Public Sector Enemy

    If only T&W concentrated on collecting money as they are supposed to do rather than trying to catch park visiting perverts this would not be a problem.

    Incompetence in action once again – bring on the sackings!!

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  2. 2
    me

    council tax is a rip off anyway!

    Report abuse

  3. 3
    ANDREW FINCH

    i have to pay mine so who ever is responsable for collecting it sack them and get some one who is capable of doing it

    Report abuse

  4. 4
    john d

    surely pro-rata this by population and look at it in context hey?

    Report abuse

  5. 5
    Y Mab Darogan

    Its funny if I miss a council tax paymen I get a threatening letter from T & W saying they will take me to court to claim the late council tax.

    I presume this letter must be a bluff on T & W part if they have this much money owing them.

    Report abuse

  6. 6
    besty

    any house hold who will not pay there council tax, the council should have the power to turn there electric and gas off and not empty there bins or let there kids go to local council run schools until they pay the council tax, i pay mine direct debit,i don’t want to but if everyone paid there tax, the tax might stay the same for a couple of years,it’s time to stop pussy footing around these parasites and start getting tough,board there houses up.

    Report abuse

  7. 7
    Lucy W

    PSE: Very good point, perhaps the Park Officers should approach anyone in the town park who looks as if they haven’t paid their Council Tax and throw them out!

    Report abuse

  8. 8
    Y Mab Darogan

    Besty – Have you heard of something called human rights?

    The right to have energy, heating, rubbish collected, education is mandatory in the european human rights bill.

    In my view we should’nt have to pay council tax we pay enough tax via our wages, vat on goods.fuel etc. I for one would like to know where all the money raised via those taxes are spent.

    My guess would be on wars we should not be involved ie Afghanistan and Iraq

    Report abuse

  9. 9
    ANDREW FINCH

    i would also add if the muppetts who objected to poll tax had kept there traps shut i would have been a lot better off paying that , when they scrapped it my councill tax was 3 1/2 times more than what myself and my wife were paying under the pole tax , how about baseing ct on what peoples annual income is????? jst becouse you live in a certain type of house etc dont meen you have lots of dosh .

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  10. 10
    devon salopian

    scrap it and replace with local income tax and prosecute those who can pay but don’t

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  11. 11
    philip clayton-smith

    Well i heared of a tennant, who was sub letting, while the t w were paying his rent, so its just goes to show its not only council tax that is being abused.all you honest paying people are paying for these not payers and fraudelent scroungers,

    Report abuse

  12. 12
    Michael

    The collection of overdue council tax goes on well after the accountancy year end,I know,I had the bailiff knocking on my door.
    Although Id paid my council tax in one lump T+W made a “clerical Error” and did not realise they had done so.
    The end result was a court judgement against me with a warrant for the bailiff to call and collect the fictitious overdue amount.
    all was sorted out with an apology (extracted) so trust me,the people that owe council tax will have to become invisible to escape payment

    Report abuse

  13. 13
    john Davies

    this must be alarming for those of you who pay council tax, as im in the army, i dont so, i dont care!

    Report abuse

  14. 14
    askeric dotcom

    Of course, if council tax were replaced by a local income tax and “local VAT” – you couldn’t easily evade it ..

    and …

    ALL people , not just one person in each household, would thus pay and, ALSO, if a local VAT were imposed, then visitors using facilites would also contribute by way of purchases –

    so if..

    The SAME expenditure is made by the council, then..

    Each person will pay a lot LESS, becuase more people are paying into the pot …. and no one is evading it !!

    simple eh?

    Report abuse

  15. 15
    Andy (Gnosall)

    Y Mab Darogan, comment 8, i don’t normally agree with you, but on this one i fully agree with what you say.
    I just don’t understand how these people are getting away without paying, i missed one payment in staffs just over 2 years ago, and i had phonecalls, letters and a person at the door.

    Report abuse

  16. 16
    Y Mab Darogan

    Andy (Gnosall) They must have some ingenious way of not paying I reckon. If I miss one payment by 3 or 4 days I get red letters, phone calls from the council, threats of court action.

    But maybe because I own my home they know that I will pay up so I’m a easy target.

    Perhaps people who live in other accomodation are not so easy to make pay up so they don’t bother trying.

    If so then how is that fair – and why should I pay more council tax to make up for those who get away without paying?

    Report abuse

  17. 17
    Rpt Barrington-Black

    local VAT?

    all that will happen is people will purchase in a neighbouring town or county with a lower VAT rate, or use the internet/mail order.

    or you apply the same rate of VAT across the country, and then it is no longer a local but a national tax.

    Anyone remember the increase of VAT from 15% to 17.5% as a measure to reduce the impact of Poll Tax rises? How much, if any, of that additional 2.5% VAT is returned to local authorities?

    Report abuse

  18. 18
    askeric dotcom

    Hi Rpt Barrington Black.

    I understand your points, and no system is ideal.

    YES – I DO remeber the raising of VAT from 15 to 17.5% to offest the impact of changing the “rates” to council tax – AND,

    I have to ask – what IS the difference between the rates and council tax?? – apart from jacking up VAT by 2.5% … not a lot it would seem.

    However … moving back to local income tax and VAT,….

    The WHOLE point here is to get a system where EVERYBODY pays in some way, and NOT just one person in each househould, as it is at present.

    I have had for years, 4 perfectly able adults in my house, ALL earning a wage, and it’s only ME that gets the Council Tax bill – and it would be me that goes to jail if it doesn’t get paid ! … HOW can that be fair?

    And.. lets think about this…

    What is the “average” number of wage earning persons per houshold on a county wide basis??

    Probably 2 or greater?

    In that example alone, ignoring a contribution of local VAT… if Council tax were replaced by local income tax – that would mean a reduction of 50% per person straightaway!
    …..
    (Assuming greedy councils don’t seize the opportunity to raise expenditure!)

    And .. Of course people might go elswhere if the VAT or sales tax were a different rate, but I really think this is a spurious argument, becuase apart from regular purchases, what about visitors? They aren’t going to travel out of town just becuase their lunch bill is a bit cheaper etc??

    Surely the idea of EVERYONE contributing to the the SAME SIZE cake is better than, as I say, just one person per household?

    And so – if the CAKE is the SAME size, and split into a greater number of portions, then each portion is smaller – hence we EACH end up paying a LOT less!!

    simple eh ?

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  19. 19
    Rpt Barrington-Black

    Eric,

    Those with the highest incomes, who should pay the highest tax, seldom do, they find (or their accountants do) the loopholes that enable them to reduce their tax liability.

    Council tax based on house value does not allow them to do that.

    There will be discrepancies, doesn’t mater what system is employed someone will always find an illustration of unfairness, but based on value, and assumptions on income/affordability based on that value seems a reasonably fair system.

    If others in your household earn an income, is it not fair that they make a contribution to you to cover the roof over their head?

    You could do what I do, council tax is in my wife’s name, she goes to jail, not me, ;-)

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