Unpaid tax collection practices often include charging households the full yearly council tax bill in a single payment, appointing bailiffs to collect debts, and, in extremely rare cases, imprisoning individuals for up to three months.
StepChange debt charity has voiced concerns about outdated and harmful debt collection practices used by local authorities.
The charity highlights that the most financially vulnerable are often those who struggle to keep up with bills. It has called for councils and the government to adopt a less punitive approach to collecting council tax debt and offer more support to those in financial need.
Therefore Legal Expert wanted to find out where in the UK families are struggling to pay council tax and offer a helping hand to those in need of legal advice and help.
How We Conducted Our Research Into Uncollected Council Tax
Figures released by the Department for Levelling UP, Housing and Communities (DLUHC) revealed that outstanding council tax arrears had surged to £6bn as of 31st March 2024.
These figures marked a significant 9% year-on-year increase and a staggering 71% rise since pre-pandemic levels. In the 2019 to 2020 period, total outstanding arrears were £3.5bn.
It follows the average council tax increase of £106, which leads to an annual cost of £2,171 for homes in England.
Legal Expert began the campaign by sending Freedom of Information requests to all Councils within the UK. The request included a question about the number of arrears between 2019 and 2024 and the financial value of the uncollected council tax. Legal Expert also submitted questions pertaining to the amount of council tax arrears that were subsequently written off.
Statistics On Uncollected Council Tax In The UK – 2019 to 2024
Chorley Borough Council Uncollected Council Tax
Figures obtained via freedom of information revealed that almost £5m in council tax has been uncollected in the last three years alone.
Before the pandemic, the amount of uncollected tax owed to the council by Chorley residents was £500,000 in the 2019-20 financial year.
Council tax arrears have since surged with debts increasing year on year.
The 2021-22 accounts in arrears reached a value of over £1m owed to the council, and again, in the 2022-23 financial year, almost £1.5m in tax was uncollected.
Finally, Legal Expert found that in the latest financial year ending in March, Chorley Borough Council logged £2.3m in uncollected tax, bringing the total owed to £4.8m in just three years.
North Devon Council Uncollected Council Tax
Figures obtained via freedom of information requests revealed that over £5m in council tax has been uncollected in the last five years alone.
North Devon Gazette reported that the Council approved a council tax rise of 2.99%, the most district councils can charge without a referendum, and a hike in other fees to balance the budget for 2024/25.
It means Band D properties will pay £210.39 for North Devon’s element of the council tax, plus parish council charges and those set by the police (a 4.95% rise) fire service and Devon County Council.
The Council managed to close a £1m budget gap without cutting services but has recognised they would have to find ways of increasing income by 2026/27 as the budget shortfall is likely to be in the region of £3 million.
Households in North Devon Council owed one million pounds in council tax before and during the worst of the pandemic.
However, Legal Expert found the amount owed to the council has increased dramatically in the last two years, with almost four million pounds outstanding.
West Berkshire Council Uncollected Council Tax
West Berkshire Council has logged an uncollected amount of over £45m in council tax since 2019.
Legal Expert has conducted an investigation into uncollected council tax in West Berkshire Council.
Figures obtained via Freedom of Information from West Berkshire Council discovered that residents owe the local authority over £45m in tax.
In February, it was revealed that West Berkshire was operating on depleted reserves, which were down to around £4m-£3m below its stated comfort level of £7m.
A 4.99% council tax increase is now helping to fund the overall budget of £174m as a result. Legal Expert’s investigation found that West Berkshire Council has failed to collect over £22m in taxes during the last two years, and £12.3m was due at the end of March for the previous financial year.
The council has issued nearly four thousand summonses in the last year, and West Berkshire is ramping up its attempts to collect unpaid council tax.
This year, West Berkshire Council passed 1700 cases to enforcement agents and issued 341 attachments to earnings orders and 799 attachments to benefits orders.
Unpaid council tax has increased significantly since the end of the pandemic, and the rising costs of the last few years seem to have impacted council tax payments.
In February, it was revealed that West Berkshire was operating on depleted reserves, which were down to around £4m-£3m below its proclaimed comfort level of £7m.
A 4.99% council tax increase is funding the overall budget of £174m as a result.
Legal Experts’ investigation found that West Berkshire Council has not collected over £22m in taxes during the last two years, and £12.3m was due at the end of March for the previous financial year.
The council has issued nearly four thousand summonses in the last year, and West Berkshire is ramping up its attempts to collect unpaid council tax.
This year, West Berkshire Council passed 1700 cases to enforcement agents and issued 341 attachments to earnings orders and 799 attachments to benefits orders.
This could mean that bailiffs are taking funds directly from people’s wages and benefits in order to recoup some of the debt.
East Suffolk Council Uncollected Council Tax
East Suffolk Council has failed to collect over £9m in council tax since 2019, and the NR32 postal area is feeling the brunt of the issue the most.
Figures obtained via a Freedom of Information request from East Suffolk Council discovered that residents owe the local authority over £9m in tax.
Legal Expert’s investigation found that East Suffolk has not collected over £5m in taxes during the last two years, and £2.8m was due at the end of March for the previous financial year.
In the last five years, the council has written off 1903 accounts for tax debt.
The NR32 region, which includes Lowestoft, Oulton Broad, Corton, Blundeston, Somerleyton, Herringfleet, Camps Heath, Ashby Dell, and Ashby, is the most troubled area in East Suffolk year after year data shows.
The region racked up 2205 cases of debt to the council in 2024, and figures have shown this to be a consistent problem in the area.
Redcar & Cleveland Borough Council Unpaid Council Tax
Redcar and Cleveland Borough Council has logged over £15m in uncollected tax since 2019 and wrote off a total of £2.2 in the last five years alone.
The BBC reported that in March, a rebellion failed to stop the council from approving budget plans for the next financial year, which include an overall 4.99% local tax rise.
Thirty-seven Redcar and Cleveland council members voted for the plans, with 16 Conservatives and some independents voting against.
The minority Labour-led council at the time revealed it was facing a £700,000 budget shortfall.
Legal Expert launched an investigation into uncollected council tax in Redcar and Cleveland Borough Council.
The council has written off £1m of unpaid tax in the last two financial years.
Figures obtained via freedom of information revealed that residents were in arrears of over £15m in the last three years alone.
Statistics from the 2022-23 financial year showed the local authority was owed over £1.5 million in arrears from 1,690 accounts.
Legal Expert’s Investigation reveals that arrears almost reached £7m at the end of the latest financial year, in March.
