Council Tax Arrears Reach £6 Billion

a { color: #880000 !important; background: #ffeeee !important; } Council Tax Arrears Reach £6 BillionFinance > EconomyAs of August 2024, unpaid council tax in England has surged to £6 billion, a significant increase attributed to the pandemic and cost-of-living crisis. Coventry City Council reports £27 million in arrears, with over 50,000 payments outstanding, prompting discussions on collection practices and support for vulnerable households.

What's happened

As of August 2024, unpaid council tax in England has surged to £6 billion, a significant increase attributed to the pandemic and cost-of-living crisis. Coventry City Council reports £27 million in arrears, with over 50,000 payments outstanding, prompting discussions on collection practices and support for vulnerable households.

Why it matters

What the papers say

According to The Independent, unpaid council tax has reached a historic high of £6 billion, with Matthew Greenwood from the Centre for Social Justice stating, 'the process of collection is failing local authorities and taxpayers alike.' This sentiment is echoed in a BBC report highlighting Coventry City Council's £27 million in arrears, which they claim is manageable compared to similar authorities. The Independent also notes that the average council tax debt has more than doubled over the past decade, emphasizing the need for a more compassionate approach to collections. The reports collectively underscore the urgent need for reform in how councils handle tax arrears, particularly for low-income households facing financial distress.

How we got here

The rise in council tax arrears has been exacerbated by the COVID-19 pandemic and ongoing economic challenges. Reports indicate that many households, particularly those on low incomes, are struggling to meet their tax obligations, leading to increased enforcement actions by local authorities.

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Common question

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