£750m of unpaid tax written off by English councils

EXCLUSIVE

Unpaid taxes totalling more than £750m have been written off by local authorities over the last five years, figures have revealed.

Last year £147.7m of council tax was wiped from accounts in England, following a £168m write off the year before.

The figures, released by the Department for Communities and Local Government, included debt incurred from previous years which councils had given up chasing. Reasons for not collecting council taxes include absconding, bankruptcy and death where no assets exist.

Local Government Minister Grant Shapps said: “Every penny of council tax that isn’t collected means higher council tax for the law-abiding citizens who do pay up on time. It’s vital that councils do all they can to support their residents and by having efficient collection services, they are better placed to keep bills down for everyone.

“Of course councils should not be heavy-handed, should protect the vulnerable, and should use bailiffs as a last resort. Councils should instead look at ways to better improve collection rates and ensure better value for money for all taxpayers.”

Separate figures released last year in response to a parliamentary question named Manchester City Council as the local authority with the most unpaid taxes. More than £11m was owed to the council by the end of March 2010 with 9.1% of taxes unpaid.

Salford, Stoke-on-Trent, Bradford and several London boroughs were also in the top 10 of councils with the highest proportion of council tax due.

Councils that managed to collect the highest proportion of taxes included City of London and the Isles of Scilly where less than 1% of taxes was unpaid by 2010.

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