Since the Labour/Independent Administration took control in 2019, the Council has failed to collect over £20m of Council Tax arrears.
Figures obtained under FOI by the Nantwich News, show there is a staggering £20.8 million of outstanding Council Tax debt from the years 2019-20, 2020-21 and 2021-22. This is especially worrying as the Council considers its budget for the next four years, proposing cuts to frontline services valued at £20m.
Cllr Amanda Stott (Independent) who chairs the Finance Sub-committee, explained that
this level of arrears is low in the context of the £854m total amount billed over the three year period and that
“These figures are within the expected levels that have been budgeted for, so it doesn’t affect our financial planning”
“Cheshire East Council follows best practice in terms of collection of local taxes by applying a firm but fair process to those who avoid payment, while supporting those residents who have difficulty making payment.
“Our vulnerability process helps residents spread payments over longer periods of time and signposts to support agencies, where appropriate.
“Our collection rates over the last three years have reduced – but this is consistent with collection nationally. During this time, the government asked councils to cease debt collection during much of the pandemic.”
Cllr Janet Clowes (Conservative Group Leader) who also serves on the Finance Sub-Committee stated;
“On the face of it, over £20m of uncollected Council Tax arrears over the past three years is scandalous – even more so when hard-strapped residents are being asked by the Labour-Independent administration to pay another maximum increase of 4.99% next year.
“But council finances are complicated and generally speaking, collection rates across the borough are high, with some Council Tax debts being recovered over longer periods.
“In the midst of a cost-of-living crisis, we know that some residents will experience difficulty in paying their bills on time.
“Nonetheless, a significant proportion of Council Tax debt (and arrears for other council services such as social care) are recoverable.
“That’s why debt collection must step carefully between legitimate recovery of debt, and sensitive support for those who are simply unable to pay. The Council Tax support scheme helps those in this position”.
“But let’s be clear, for those who can pay but do not pay, it is the duty of this Labour-led administration to pursue collection of these monies robustly. This may mean recruiting a larger team to undertake this work, but in the current climate, this would be a worthwhile investment.
“After all, £20m is still a phenomenal sum and every late bill paid, may help save the frontline services that the current budget consultation is proposing to slash.”
Support is available to those who need it with paying their council tax at www.cheshireeast.gov.uk/CouncilTaxSupport
REFERENCE: https://thenantwichnews.co.uk/2023/02/02/cec-fails-to-collect-more-than…
