£3million council tax black hole revealed in Gloucester
TAXPAYERS have been left fuming after a £3.1million black hole has emerged because people have failed to pay their council tax.
The eye-watering figure is owed to Gloucester City Council's collectors.
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Yet next year council bosses will have to cut much-needed services to fill a £2million funding gap.
Taxpayers on the streets of Gloucester are demanding tough action on those that don't pay up.
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David McKechnie, from Abbeydale, said: "How can these people get away with it?
"I pay my council tax every month by direct debit and don't complain.
"They should take it out of people's benefits before the money even reaches them."
One 78-year-old pensioner, from Kingsholm, who asked not to be named, said: "I pay my council tax because we all expect services in return. It's not fair if other people aren't making their contribution."
Terry O'Shaughnessy, from Coleford, said: "This is a lot of money. It's not rocket science to work out that it could cover the cuts they are going to have to make next year.
"They need to come down tough on people – if they won't pay they should be made to work for it instead."
Council bosses were left surprised when the figures were revealed to them after a Freedom of Information request was made by The Citizen. Now deputy leader Councillor Debbie Llewellyn, who is in charge of the city's finances, has vowed tough action.
She said: "In the present time people are going to be falling on hard times and there's a difference between those can't pay and those who won't.
"We have a new forum working with Citizens Advice and the Law Centre which is looking at how we can support people sooner before they run into trouble."
Council lawyers have already applied to take 4,212 people to court for non-payment of council tax since April. But a whopping £3,119,121.74 has not been paid since 1993.
The city council collects £49.9million each year and successful collections are at 96.6 per cent.
Comments
by gloscityguy
Thursday, December 20 2012, 9:57PM
“David McKechnie, from Abbeydale, said: "How can these people get away with it?
"I pay my council tax every month by direct debit and don't complain.
"They should take it out of people's benefits before the money even reaches them."
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People on benefits don't get money for council tax. they don't pay council tax.”
by Walker100
Thursday, December 20 2012, 3:29PM
“Actually, the uncollected figure quoted says it has been uncollected dating back to 1993, 19 years. Well, if council tax is being collected at almost £50m now then say, on average it was £45m dating back to 1993. That's £855,000,000.......so £3,200,000 is a fraction 1%....Well Done Gloucester City Council!”
by capital1978
Thursday, December 20 2012, 10:44AM
“"Council bosses were left surprised when the figures were revealed to them after a Freedom of Information request was made by The Citizen."
If this is true then it shows poor management. Surely the council should be on top of unpaid debts this large.”
by MarkC11
Thursday, December 20 2012, 10:15AM
“Misleading TIG artclie the City collects Council tax for itself, The County, The Police and bits of the City that has Parish Councils, so this £4million would be apportioned across all of these Councils, it is a high amount but the effect does not fall on the City alone. It would help understanding if the article made it clear, and how much the total budgets were.”
by eyeopener
Thursday, December 20 2012, 10:08AM
“"a whopping £3,119,121.74 has not been paid since 1993."
I was shocked, but Lecorche has put this into perspective, when you consider that this is less than 4% per annum, how many private enterprises could say that they do as well?”
by L804XDG
Thursday, December 20 2012, 9:59AM
“Ah the joys of living in a caravan... EXEMPT... about time everyone else lived in caravans too!”
by Ysedra
Thursday, December 20 2012, 8:59AM
“Every little helps, Sandra... :-)”
by Lecorche
Thursday, December 20 2012, 8:54AM
“Black hole? Cobblers!
Less than 4 percent has to qualify as wastage. A normal effect.
Great if it can be reduced but a Black Hole? Eye watering?
I'm surprised the Council hasn't allowed for this. No I'm not!
Expect Wastage Tax in the new year.
Love the picture though.”
by Walker100
Thursday, December 20 2012, 8:53AM
“In most cases, if someone is on benefit, they get a council tax rebate and usually pay by deduction. If they don't pay the court can order an Attachment to Benefits. Benefit claimants are not the primary problem here.
While it may seem a great deal of money, and it is, the main challenge for the council is the system they HAVE to employ to enforce payment. This involves a circuitous route with letters, demands, a liability order, a court hearing and then, eventually, either a Warrant of Distress or a Warrant of Arrest is issued. This all takes a great deal of time. You cannot just apply for a liability order in April, or May, or even June of the year the tax is due.
It would be a great deal fairer on the hard working council tax enforcement team if the figure for 2009/10 were looked at. At least they would have had some time to use the court process to enforce payment.”
by SandraPee
Thursday, December 20 2012, 7:34AM
“Wrong picture !”