More than £15m owed in unpaid council tax in Shropshire

Authorities have been spending hours chasing up unpaid bills, including taking enforcement action and making claims through the courts to recover debts.

It is a problem that leaves councils in the region with a financial black hole.

The amount owed to Shropshire Council has risen in the past two years.

Shropshire Council was owed £9.91m at the end of the 2016/17 financial year, compared to £8.6m which was outstanding at the end of 2014/15.

The figure at the start of April last year stood at £9m, and arrears had reduced by £600,000 by June, but the situation has again spiralled.

There was also £3.6m outstanding in business rates arrears at the beginning of the current financial year.

Bosses at Shropshire Council say the authority has competitive rates for council tax collection and takes its responsibilities very seriously.

Phil Weir, revenues and benefits service manager, said: "Shropshire Council has very competitive rates for council tax collection, collecting 98.4 per cent of council tax due for each of the previous two financial years.

"Shropshire Council has also collected 99.1 per cent and 98.8 per cent of business rates for the previous two financial years respectively.

"The council takes its responsibilities to collect all council tax and business rates due very seriously and uses the enforcement methods available to us within the regulations.

"This includes attachment of earnings, attachment of benefit, enforcement agents, charging orders and in some cases we will initiate committal proceedings."

He said the council also entered into payment arrangements with people who are struggling to pay their council tax or business rates.

The total arrears outstanding for Telford & Wrekin Council stood at £5.72m at the start of April, a slight reduction from £5.86m – the total at the end of the 2015/16 financial year.

More than £5.77m had been owed at the end of 2014/15.

Telford & Wrekin Council spokesman Russell Griffin said: "The council continues to pursue debtors for non-payment of council tax and ultimately collects 99.5 per cent of all amounts due.

"We recoup more than £70m in council tax each year so the total outstanding figure needs to be seen in context."

At the start of April there was also £2.9m in unpaid business rates owed to the council, which collects nearly £76m of business rates each year.

In Powys, the amount of unpaid council tax still owed to Powys County Council is due to be released next month.

A total of £3.57m was owed in Powys at the end of the 2015/16 financial year – up from £3.45m at the end of 2014/15.

David Powell, strategic director for resources at Powys County Council, said its council tax collection rates were among the best in Wales according to figures produced by the Welsh Assembly Government.

He said the county council collected 97.7 per cent of the amount due in 2015/16, which was above the Welsh council average of 97.2 per cent.

Mr Powell added: "The council has maintained council tax collection rates despite very difficult financial circumstances.

"Collection rates during the financial year 2015/16 show a very slight increase on the previous year’s 97.6 rates and see the council rated as one of the most effective in Wales.

“Council tax is an essential source of income for the county council helping fund vital services."