Worst councils fail to collect up to 20% of tax

3 Mar 05
Local authorities are losing millions of pounds in council tax revenue each year because of inadequate collection systems, according to a study by the GMB trade union.

04 March 2005

Local authorities are losing millions of pounds in council tax revenue each year because of inadequate collection systems, according to a study by the GMB trade union.

Its analysis, published on March 2, found that English authorities are failing to collect up to 20% of the council tax owed, resulting in substantial losses in revenue that can have serious knock-on effects on local services.

The London Borough of Hackney was the worst performing authority in England, failing to collect 20.7% of the tax it was owed in 2003/04. The GMB said it had cost the authority around £11m in lost revenue.

London was heavily represented among the ranks of the bottom performers: 14 of England's worst 25 authorities are in the capital.

Other major cities also fared badly, such as Leicester, Liverpool and Manchester, which respectively lost out on 9.8%, 9.9% and 10.6% of possible revenue in 2003/04. But the GMB's analysis showed that half of England's 375 councils managed to collect at least 97.5% of council tax owed.

Justin Bowden, the GMB's senior organiser in public services, said the worst authorities must be prepared to learn from those successfully tackling non-payment.

'Councillors in the worst performing councils need to get their finger out to put a stop to inefficiency and cheating,' he said.

'This loss of revenue leads to poorer services, fewer jobs and poorer terms and conditions of employment for direct and contract staff.'

A spokeswoman for Hackney said: 'Since the current administration took over in 2001, council tax collection has been increasing each year. This year's budget has been set on a projected collection in year rate of 90%, which we are confident of achieving.'

PFmar2005

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