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Town halls 'too hasty' over council tax bankruptcies
Nicholas Cecil, Chief Political Correspondent7 Jan 2009
TOWN halls are too quick to resort to court action against council tax defaulters, say MPs.
More than 1.2 million people received a court summons last year after falling behind with payments in 170 of the 370 local authority areas in England and Wales. Bailiffs also called on nearly 600,000 non-payers, data showed, with the councils filing for bankruptcy against 1,706 people.
The figures, obtained by the Liberal Democrats, were for fewer than half the town halls, so the overall level of legal action is likely to be at least double. Lib-Dem local government spokeswoman Julia Goldsworthy said: "Overstretched families are already struggling to meet their mortgage repayments but this survey shows that failing to pay council tax can have just as devastating an effect on householders.
"Just as lenders are being asked to reduce repossessions, public bodies should do everything they can to ensure that bankruptcy is avoided where possible."
The Local Government Association emphasised that only one per cent of cases reached court with bankruptcy orders a last resort. It added that councils usually filed for bankruptcy only against people owing more than £750.
Reader views (10)
I bought my council house. I pay a service charge which apparently includes refuse collection, i have to pay for an annual parking space, and still the baliffs are banging down my door for council tax for the 6 months I claimed benefits 5 years ago, the council say even though they have made an admin error they can't recall the baliffs, i must pay up and then re-claim my money and charges!?!?!?!?!
- Melissa, London, 07/01/2009 21:22
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But they do little to make sure that the non-working tenants don't fall behind, and write off billions from that source, leaving the earners to pick up the tab!
- Hugh, Middx, 07/01/2009 20:07
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Will - Soton, it's not just your local councillors, mine did the same last year awarding themselves £10,000 each, as far as anyone can tell none of them have even lifted a finger to earn it.
- Bob, Cheam, 07/01/2009 14:52
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The level of Council tax is way too high (and the seervice we receive too poor)as is tax as a whole. People receiving such action (or are dissatisfied with the service they receive) should contact their councillors directly and get them to justify their action. Councils are put in power by the people, for the people and are answerable to the people - make them answer to you!
If that does not work - join the party of the ruling party and deselect the councilors!
- Jeremy E, London, 07/01/2009 14:47
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Harrow council also send out a summons without any warning and then when the matter is resolved they rub salt in to the wound threatening to publish your details that you owe the council money in the local newsapaper even after paying any owed tax.
- Edwin Sheppard, Pinner UK, 07/01/2009 12:57
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So how is it that Council Tax revenue finds it's way into Iceland, only to be lost in that economic disaster when it should have been kept here at home?
- Enuff, London, 07/01/2009 12:50
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I wonder what the Local Government Association has to say about the 22 CEOs of Southampton council who were awarded (voted for by six councillors in secret) a pay rise of 13% recently averaging over 14000 each. What recession ? Those that have fallen on hard times will get no sympathy from these self seekers.
- Wills, Soton, 07/01/2009 12:03
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I moved house a few months ago and because I had paid all my council tax when I got the bill in April, the council (Southwark)owe me a couple of hundred pounds. Despite numerous phone calls and letters they won't pay up. If the shoe was on the other foot I would have had a visit from the bailiffs ages ago.
- Kieran, London, UK, 07/01/2009 11:42
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I was one of those 1.2 mil - missed the third payments due date and in less than a week the court summons came through the door. They didn't even send a reminder first
- Gray, Leic, 07/01/2009 11:20
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Isn't the real problem that the Council Tax is simply too high ?
If Councils stuck to emptying the bins and cleaning the streets, they could start to think about efficiency ?
- Cap, london, 07/01/2009 10:10
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