A massive black hole in council funding was revealed when we learned the full extent of non-payment of taxes, which help fund roads, policing and bin collections.

At the last count, in March 2008, West Lindsey Council was chasing £929,123,30 after hundreds of court summons costing almost £120,000 were issued.

Figures obtained under the Freedom of Information Act show the district council has managed to claw back some of the unpaid cash – but is still showing arrears of more than £700,000.

Records show these figures have increased dramatically on arrears for previous years – the outstanding amount this time last year was just £295,000 – and the credit crunch and rise in unemployment are being blamed.

The number of people claiming Council Tax benefits has risen sharply in recent years – with the current figure hitting 7,019 across the district.

These findings have shocked West Lindsey tax payers and opinion is divided on who is to blame.

Shirley Moody, of Bramley Court, Gainsborough, said she was surprised at the high figures and said tax payers and the council had their part to pay.

"Council Tax isn't cheap but I always pay mine on time and by direct debit. I appreciate it's harder for some people to pay it but they shouldn't be allowed to get away with it as we all use the services. There's no excuse for it," she said.

"I appreciate direct debit doesn't suit all people but perhaps the council should start looking for ways to make it more flexible for people to pay at different times in the month, while at the same time ensuring they pay in full," she added.

Pensioner Ken Thompson, of Trinity Street, said the district authority needed to get its act together and stop pouring money down the drain.

"We are in a recession and have had so many stories of community concerns in trouble, such as the Trinity Arts Centre and Marshall's Sports," he said.

"Why is the council wasting money tearing down the old Guildhall only to make way for more car parks, which we don't need?"

He added: "The market is another thing – why is the council spending millions on it and messing about with it?"

"It's no surprise that some people can't afford to pay the taxes with the current financial mess we are in."

Michael Jones, of Spring Court Gardens, said the council needed to get tougher on people who persistently dodged paying their Council Tax.

"I appreciate we're going through tough times but it's not fair on the large majority of law-abiding people who play by the rules," he said.