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Town hall bosses write off £3.2m unpaid council tax, says report

Pamela Welsh
17/ 4/2008

SALFORD City Council had to write off over £3.2m in council tax in the last financial year, new figures have revealed

Town hall officials failed to collect the money over a period of years, and the £3.2m was written off in the financial year 2006/7.

More than £130m of unpaid council tax was written off by English councils in 2006/7, according to the Department for Communities and Local Government.

The Tories said it was noticeable that Labour-controlled authorities, including Salford - where Local Government Secretary Hazel Blears is MP - had the highest uncollected debts.

Shadow Communities and Local Government Secretary Eric Pickles said: "This shows that Labour councils have the worst council tax collection rates in the country, meaning higher bills for honest taxpayers in those areas.

"It must be hugely embarrassing for Hazel Blears that her own Labour council is one of the worst."

Alan Westwood, strategic director for customer and support services at Salford City Council, said: "The majority of people pay their rent and council tax on time in full and we have a number of actions in place to make sure that those who fail to pay on time don’t impact on council taxpayers.

"We do all that we can legally to ensure that we recover all money that is owed and has not been paid however, in some circumstances, it’s not possible or financially viable to pursue the debt. This may happen when someone has died or moved out of the area for example.

"The decision to write off debt is only taken as a last resort when all of our investigations have been exhausted or where it would no longer be cost effective for the council to pursue the case. This is good accounting practice across all organisations and the Audit Commission’s Use of Resources Score highlights that we manage our resources well."

The TaxPayers’ Alliance described the figures as ‘shocking’. A spokesman said: "Councils spend a lot of money on tax collection, so it’s unforgivable that they are still writing off so much in missed payments.

"At a time when pensioners are being sent to jail for not being able to pay relatively small amounts, it is shocking that councils are happy to write off millions."


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Most recent 2 of 6 user comments

   All I can add to this is ......

RICHARD, YOU ARE SO RIGHT !!!!!

I JUST WISH SOMEONE OF YOUR INTELLIGENCE AND UNDERSTANDING WAS RUNNING THIS COUNTRY !!!!

Regards

Dennis
Dennis the Menace, Hyde
28/04/2008 at 01:26
   How would I collect unpaid council taxes without it becoming financially unviable? Do I think the council took the decision to write off £3.2 million lightly?

I've no doubt the decision to write off £3.2 million by Salford Labour was indeed taken very casually. First of all it's a gift to Labour's 'client voting class' of institutionalised welfare dependants.

Secondly it's a decision befitting of the public sector/Labour culture of poor financial administration in which because the public sector can get away with wasting money by the barrowload it does (in contrast to the real world survival issues of many private sector concerns).

Thirdly it demonstrates Salford Labour's arrogant contempt for the electorate: Salford Labour believes it is electorally unassailable and therefore thinks it can get away with absolutely anything... in this context writing off £3.2 million is a trivial matter to Salford Labour (and they'll just crank up the tax to those who do pay in the future anyway).

Debt Collection Carvath style? Well now let me see...

The first point is that I would go easy on the significant minority of non-payers that don't pay because they genuinely - through no fault of their own - can't pay or are genuinely struggling to pay. I'm talking about the growing band of pensioners on fixed incomes who've had their pensions raped by Gordon Brown at the same time as Labour council taxes rise extortionately and inexorably above the rate of inflation. I would not be jailing such victims of Labour policy created poverty!

As for the majority of non-payers that are just trying to get away with it...

I note that private companies are rather more effective at debt-collecting than Salford Council. Perhaps you should study how they do it.

I suggest the Council should evict from social housing those who persistently dodge payment [subject to exceptions like the genuinely impoverished pensioners aforementioned]... the council should evict the layabouts and the scallies (whose money is coming entirely from the taxpayers' purse anyway - and from crime/black economy) who are just avoiding payment because they know they can (because Salford Labour is weak at collection) and once evicted such people should not be able to get back into social housing until they settle their old debt. Furthermore debt could be collected at source from such people's various benefits payments.

Banks and building societies do not mess about when a debtor has missed a string of mortgage repayments. It's very simple (and perhaps harsh - but that's the real world)... a bad debtor's home is repossessed and that person is out.

If social housing residents knew that persistent non-payment of Council Tax meant no home - no home in Salford, no home from any other council in the country - I think you'd find that they'd pay up... just like the hardworking, taxpaying majority who know they can't get away with not paying their bills (unlike the welfare dependants they fund).

So much of this all goes back to the issue of Labour indulging welfare dependant client voters. It really does.

It is NOT compassionate to write off their debt; it is actually cruel. Indulging such people just perpetuates their misery and reinforces their dependency on the state. It is tragic to see these millions of wasted lives, to see people literally rotting away because of welfarism. But Labour will continue to write off their council tax debts so long as it keeps them in power.

P.S. Regarding Polish 'plumbers', Bulgarian 'builders' and others from EU countries... because it's so easy for this army of migrants to descend on our country, take advantage of social housing (and everything else) and then bugger off back to Poland without paying their council tax... it might be a sensible idea to put such people at the bottom of the waiting lists (below British citizens) and also make them pay their first year's council tax in advance. I don't think that's unreasonable.
Richard Carvath
18/04/2008 at 13:59
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