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Council Tax arrears near £1million
COUNCIL Tax dodgers have cost Guildhall bosses almost £1 million this year in late payments, the Standard can exclusively reveal.
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.
”Too many people know how to play the system and it’s not surprising the council is 1 million in the red because of these idiots.”
The steep hike in Council Tax arrears has also been blamed on billing delays when the Police Authority demanded a 78 per cent rise in council tax in March last year.
The Government opposed the increase after the bills had been sent out to homeowners across the district – meaning West Lindsey had to re-issue 40,000 new letters.
Alan Robinson, revenue benefits and customer services manager, confirmed the council’s collection rate of 98.17 per cent is slightly down compared to last year’s 98.77 per cent.
”I would put that slight decrease, worth around 200,000, down to two factors – the general economic situation and secondly the rebilling as a result of the Police authority being capped,” he said.
”The rebilling delayed some of the recovery action which we would normally take.”
“The council is confident that the arrears will be collected. We will use all available methods of collection, including attachment of earnings and benefits, bailiffs and insolvency proceedings.”
And financial services manager Russell Stone assured taxpayers that the council’s recovery rate was good compared to other authorities and that services would remain unaffected.
”I can confirm that this does not directly impact upon service delivery. The impact is purely one of cashflow, which the council is able to manage through its remaining cash balances,” he said.
”The more important issue is the total percentage of Council Tax collected as the yearly ‘ups and downs’ are managed through the collection fund.”
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Weather for Gainsborough
Thursday 24 May 2012
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