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City coffers £14.5m short as thousands dodge council tax



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Published Date: 26 June 2008
CITY finance leader Gordon Mackenzie today hit out at residents who are refusing to pay council tax after new figures revealed that a total of £14.5 million went uncollected last year.
The Lib Dem councillor said the administration has less to spend on local services because of the "unfair" attitude of thousands of people.

Last year's collection rate reached a record high, but at 92.9 per cent, that still equates to an average o
f 12,000 people who owe the council money.

It also means the total debt owed to the council since 1996 is thought to have passed £100m for the first time. Council chiefs today pledged to continue chasing the money.

Councillor Mackenzie said: "Millions are owed by people who can afford to pay but have chosen not to. This is unfair on the majority of residents who do pay and means the council has less to spend on services for the people of Edinburgh. It's only right that we make moves to recover that debt as quickly and as cost-effectively as possible."

The council's figures show that in the last financial year, ended March 31, it received £189.3m of the £203.8m due.

In the previous financial year, 2006-07, the council took in £181.8m of the £196.4m due in council tax, a collection rate of 92.56 per cent.

And since March 31, 2007, it has received a further £5m, taking the collection rate to 94.2 per cent for 2006-07.

Cllr Mackenzie said: "Our collection rates continue to improve and I'm confident that recent changes in our procedures will maintain that trend."

He said the improvements had resulted from improved and faster debt recovery, together with an increase in direct debits.

Last year alone an extra 10,000 people agreed to use direct debits to pay their council tax.

And the council hopes to bring about further improvements in the collection rate by reducing the number of stages involved in enforcement. If a payment is missed, the reminder issued will now also serve as a final notice and unless the money is paid immediately, the account will automatically be passed to sheriff officers.

Figures published yesterday by the Scottish Government showed across the country nearly £112m of council tax went uncollected last year.

Bills totalling £1,940,354 were sent out and £1,828,516 was received, a collection rate of 94.2 per cent – up from 93.8 per cent the previous year and the best for a decade.

Labour and the Tories both used the statistics to warn the SNP there was no guarantee similar collection rates could be achieved for its proposed local income tax.

Labour finance spokesman Andy Kerr said: "Levels of avoidance and evasion are likely to be greatly increased and could bring us back to the days of the poll tax where huge numbers of people were not paying any local tax."





The full article contains 500 words and appears in Edinburgh Evening News newspaper.
Page 1 of 1

  • Last Updated: 26 June 2008 10:11 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
  • Related Topics: Edinburgh Council
 
1

DenH,

26/06/2008 12:32:11
The council have made it more difficult to pay since you can no longer pay at a bank. You also can't check up on how much you have paid already - it was easier with the book system.
2

Alternative (High-Octane) Fuel Head,

Edinburgh 26/06/2008 12:33:47
Maybe if the council tax hadn't more than doubled in the last 10 years, the collection rate would be a bit better as less people would be inclined to avoid it.
3

The Answer,

Glasgow 26/06/2008 12:39:24
Doe's the £2 billion include council tax benefit of £400 million?

or is £2.4 billion the real council tax burden?
4

Nurse,

Edinburgh 26/06/2008 12:44:10
Cantwait for the SNP to abolish it completely, ITS LABOUR THAT ARE PREVENTING THIS IN THE PARLIAMENT THEY ARE NO LONGER SOCIALIST BUT ONLY CARE FOR THEMSELVES.
IT IS AN UNFAIR MAGGIE THATCHER INSTALLED SYSTEM HURTING THE POOR AND HELPING THE RICH>
5

Alternative (High-Octane) Fuel Head,

Edinburgh 26/06/2008 12:47:47
#4:

Actually, it was the Scottish Office that introduced the poll tax to Scotland. Scottish MPs and ministers advocated that and they had to pursuade the cabinet to go along with it.

That was poll tax. Then we had the community charge, now we have council tax, which is bears more similarity to rates than to poll tax or community charge.
6

Wull The Champ,

Sunny Leith 26/06/2008 12:56:28
Maybe more people would be willing to consider paying council tax if they could see some benefits. Instead we get schools closing, filthy streets, and coucillors taking the occassional free flight or two.
7

Xena - Warrior Princess,

26/06/2008 13:02:37
If Councils were told that they couldn't impose a rise in the Council Tax until they had collected the lot every year, I'm sure it would prove to be an incentive. I am sick of paying when obviously others don't pay.
8

Arrow,

edinburgh 26/06/2008 13:03:38
can we assume that none of the employees of Edinburgh Council are included in the no-payers category?
9

Bored,

26/06/2008 13:21:52
#6 Wull the Champ

Maybe if those that don't pay actually did, then the schools wouldn't have to close and your streets would be cleaned?
10

A Friend of Fernando Poo,

26/06/2008 13:24:44
Time to get tough. Kick the kids of miscreants out of schools and nurseries. Refuse access to Council licensed premises, and if they get ill, tell them to find a softer Council to let them into hospital. If they park their cars on council roads, cube 'em.

I bet we'd see payments roaring in once it was obvious we were serious about them.
11

Alternative (High-Octane) Fuel Head,

Edinburgh 26/06/2008 13:28:02
#9:

Maybe if they didn't waste money on ruining every single road in Edinburgh with "traffic calming measures... And didn't pay squads of "wardens" hundreds of thousands of pounds to make sure that no-one has the gall to light up a fag in a pub (for christs sake)... And didn't waste millions on an overgrown toy train set... then the schools wouldn't have to be closed and the streets would be cleaned.

Like any business, you have to factor in a percentage for bad debt. If you do not, you will go under. I'm sure that the council has this under control.
12

traprain,

26/06/2008 13:50:23
Perhaps we need a bit of old fashioned thinking. Publish their names for a start! While I agree about the waste of revenues, that is a different story, people too poor to pay have the tax rebated.
13

The Genuine Mario Antoinette,

26/06/2008 14:01:13
13 I dont know the exact figures but the vast majority of local expenditure comes from central government.

14,5 million to a workforce the size of Edinburgh Cooncil isnt exactly that much.

And they are hardly accountable, and the employ (some) dead beats. And they are a bit lefty.

I hope I've managed to convince you of the reasons why I dont pay them.

Nice attempt at making me feel guilty though Gordon Mackenzie. Get your house in order, you could save this on stationery or certainly by renegotiating your IT supplies.
14

Leila,

Edinburgh 26/06/2008 14:07:23
#5: the "poll tax" was just another name for what was officially called the "community charge" - they weren't different systems.
15

The Genuine Mario Antoinette,

26/06/2008 14:09:05
Rules are for the strict adherence of the stupid and for guidance to the smart.

Until i get grabbed obviuosly.
16

Jwil,

26/06/2008 14:17:42
An argument for LIT where revenue is taken out of salaries?
17

Xena - Warrior Princess,

26/06/2008 14:24:30
#16 No. That is just as bad as the Poll Tax, but I would support a local sales tax.
18

I love to eat Sellotape,

26/06/2008 14:25:39
What about a Pole tax? That would raise some money.

Ha ha.
19

I love to eat Sellotape,

26/06/2008 14:41:34
A Pole tax.
20

I love to eat Sellotape,

26/06/2008 14:41:44
Raise lots of money.
21

The Genuine Mario Antoinette,

26/06/2008 15:15:15
Raisins. In a cake.
22

Mallory,

Edinburgh 26/06/2008 15:56:35
Why not raid the trams budget and claim it as a yet another cost increase?
23

Mop,

*********** 26/06/2008 17:18:26
I am absolutely sick of paying my way in life and constantly reading about those who contribute sod bl***y all and who get everything handed to them on a plate.

Arrest the benefits and wages of those who refuse to pay.
Why should they get their services and the honest people pay for it.

They arrested non payers wages when the poll tax was here -do the same with this.
24

Peter - very disappointed/concerned,

Edinburgh 26/06/2008 17:35:45
#23 Mop,

They do freeze wages and salaries of non-payers (or they certainly did when I worked for the local authority). I can't remember what happens with the unemployed, but I believe they get a dscount or pay nothing.

The whole problem comes from the way local authorities are funded.

At present some 80 - 85% of their cash comes from the Exchequer, the rest from Coucil Tax and Business Rates.

One solution is a local income tax (which may be full of pitfalls), the other (and to my mind best way) is for the Exchequer to provide local authorities with an annual budget by putting up income tax (so that everyone in employment pays) and scrapping council taxes completely.

Local authorities should have no rights to raise funds by any means whatsoever. At present, at the first sign of financial problems the usual course of action is simply to crucify poor old Joe Public by raising council tax and a tax based on assumed property valuations is a nonsense as it does not reflect ability to pay.

25

Pocket Dictionary,

26/06/2008 18:47:16
Councils are not consistent. Staff in one East Coast council do not pay for any personal telephone calls. All those annoying non-geographic numbers that you and I have to pay for, they just save them up and go into work and make them, to their banks, utilities, holiday firms and so on.
They can phone the hairdresser, place bets, get kept on hold for ages and it doesn't cost them a single penny - just us council tax payers funding another of their perks for working in local authority.
26

JT,

26/06/2008 19:36:58
Why cant those on benefits pay a share of the council tax, pensioners have to pay out of their pitance of a pension. I went to pay the first month of this years tax and couldnt remember exactly how much to pay for the first instalment, it was 124.40 and I paid 120.00got a demand for the 4.40 two days before I was due to pay the second amount. I refuse to pay by direct debit as I have had the council take more than one payment at a time (it does happen - even though they denied it). Time they spend on getting the people who WONT pay rather than those who CANT!!!
27

Gorgie_Tony,

Edinburgh 26/06/2008 21:19:40
The SNP promised to abolish the Council Tax - another election manifesto lie - I am still paying it.
28

The Geniune Mario Antionette,

26/06/2008 22:11:01
It's a taxing issue
29

The Genuine Mario Antoinette,

26/06/2008 23:07:20
28 it certainly is
30

Legacy,

27/06/2008 08:15:01
Propaganda!
Most of the Arrears are from people who can't afford to Pay. If the arrears were from people who CAN afford to pay, there are plenty of punitive measures open to the Council to use and enforce payment. So if they are that sure of their facts they would have went after the those that can afford it, and by reason of their own argument, they are chasing the wrong people who can't afford to pay, or there arrears would hardly exist!
The Iniquitous Council Tax has had it's day it plainly does not work, and has doubled under New Labour, get rid of asap.
What would the arrears ammount to under a sensible Local Income Tax?
Very Little!





31

Brian M,

Edinburgh 27/06/2008 13:10:54
There are rebates for people who cannot afford to pay. They just have to complete an application form detailing their income.
32

Mop,

*********** 27/06/2008 13:21:16
Thank you 24.

What really hacks me off though is for years I knew someone who was "working in England" the whole time the poll tax debacle was on.This person seemed to "move house" alot whenever a financial institution seemed to catch up with them.This person couldnt have been the only one.To this day Im very suspicious of people who seem to "move house/work away" an awful lot.

I also agree with the other poster more needs to be done about the wont pay merchants -not the cant pay.
33

jimb4abobor2,

Edinburgh 26/07/2008 01:35:56
Cantwait for the SNP to abolish it completely, ITS LABOUR THAT ARE PREVENTING THIS IN THE PARLIAMENT THEY ARE NO LONGER SOCIALIST BUT ONLY CARE FOR THEMSELVES.
IT IS AN UNFAIR MAGGIE THATCHER INSTALLED SYSTEM HURTING THE POOR AND HELPING THE RICH> i am on a low income of around £140 per week and by the time i have too pay everthing not much left for the council-tax of around £1200 pound a year which works out at around £23.00 per-week after all i have to eat feed my large electricity bills and large gas bills elec 320 gas £15 per week plus food not much leftover so get your facts right the rich lap it up what with 2 houses big cars x3 and after the are skint well is simple they just put a penny on everything huh we cant do that. i wish if you could thats us poor people fine the rich if they get it wrong by having to give everyone with an income under £200 £100 each for getting it wrong i bet there would not be as many mistakes then.

 

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