£15m in unpaid council tax to be 'written off' by Stoke-on-Trent City Council

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Friday, October 05, 2012
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The Sentinel

MORE than £8 million in unpaid council tax had already been written off by the city council – before its controversial decision to wipe out millions of pounds in debts.

Council leaders agreed to write off £7.5 million in unpaid taxes and business rates last month, blaming the debt mountain on the reluctance of 'previous administrations' to wipe long-term debts from the authority's books.

But figures obtained by The Sentinel show the authority had already written off £8.1 million in unpaid council tax before that decision was taken.

Residents and opposition members have now called on the council to take tough action against tax dodgers to prevent the same situation developing again.

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Records show the authority frequently allowed long-term debts to mount up.

One resident was allowed to accumulate council tax arrears of £5,524 between 1993 and 2005 – before the debt was eventually written off last year.

Councillor Dave Conway, leader of the opposition City Independents, said: "I don't think it is a case of previous administrations being loath to write debt off. Clearly, it has been done in previous years.

"The overriding question has to be how do you allow it to build up for several years, to these huge amounts, in the first place?

"It does not send a very good message to the poor souls who have always paid. People work very hard to pay the bills."

Alan Joinson, chairman of East Bentilee residents' association, said: "I've always worked hard and I have always paid my taxes.

"They should be doing more to chase up the people who refuse to pay.

"Give them ample warning, then send in bailiffs.

"You do get people who say they don't know what the council tax is for.

"But they would soon notice if their bin wasn't being emptied and if we didn't have the police and the fire service."

Despite the figures, some former councillors admit there were problems in writing off long-term debt.

Former Liberal Democrat councillor Kieran Clarke, of Packmoor, who served as a cabinet member for finance, said: "There were cases where technically it was written off, and they made a provision for it in the books because they knew they couldn't get it. That used to infuriate me.

"Nobody actually wanted to make the announcement that it was being formally written off.

"Clearly the time to do it is when you haven't got an election for several years.

"When a debt dates back years it becomes incredibly difficult to try to get it back."

The city council has admitted it allowed debts to build while focusing too much on its year-on-year targets.

But leaders say collection rates now compare favourably to most authorities.

Members have agreed to review and write-off debts every six months to avoid large amounts of long-term debt lying on file in future.

And they claim to have taken extensive steps to ensure all debts written off are 'unrecoverable'.

Deputy leader Paul Shotton told cabinet colleagues: "I'm satisfied that we couldn't do anything more in these instances to try to get the debt back."

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  • Profile image for time_2_think

    by time_2_think

    Friday, October 05 2012, 7:53PM

    “"The city council has admitted it allowed debts to build while focusing too much on its year-on-year targets."

    Good old performance targets!

    What's the first thing any organisation is going to do when they're played off against another organisation, in this instance with collection rates?

    The objective of beating a neighbouring council's score becomes the primary objective over collecting the actual money. There will always be a way to better performance scores which is not necessarily reaching the objective of why targets were introduced in the first place.

    Obviously this has happened here. Debt from previous years has been made less of a priority whilst the focus has been on the target enhancing in year targets. Not so indicative of money collected then are they, these collection rates.”

  • Profile image for Mrs_biggles

    by Mrs_biggles

    Friday, October 05 2012, 4:12PM

    “These Freedom of Information article are insane....

    Maybe its correct from an accounting perspective but it bears absolutely no resemblance to what is actually going on.

    All these quoted £millions in arrears, owing or dodged are pretty much meaningless. The article doesn't tell you how much of the supposed debt is attributable to people who have died, absconded, in prison or any number of othet reasons which pretty much make it impossible or cost prohibative to collect.

    It's also insane when council's or newspapers report that £x million is outstanding in council tax as of the xth of two thousand and whatever.

    In these instances you could wipe out almost the entire figure by accounting for the money owed purely as a consequence of councils withdrawing instalment facilities. In fact this element of supposed outstanding money owed is technically not outstanding debt. It will be down to slack payers or householders struggling to hit instalment due dates, having the added pressure of paying the entire years liability in one go and consequently being forced into paying additional fees for court costs and bailiffs when they obviously cant do it (it's a revenue trap set by the MoJ).

    In these cases majority of the money will have been paid by the end of the financial year despite court action and bailiff enforcement. The only reason they throw around summonses like confetti is because they probably make a couple of hundred thousand pounds a month in court cost each month.”

  • Profile image for kianpm1

    by kianpm1

    Friday, October 05 2012, 3:40PM

    “stoke on trent council are useless at budgeting where our council tax is spent anyway...mr joinson says "people would soon notice if their bins don't get emptied and there are no police or fire service" well council tax went up yet again but most of the services across staffordshire have been
    cut back, does that mean next year we will get a reduction!! i don't think so £40 million has to be made to fund yet another move from the civic centre!!”

  • Profile image for PeterPotter

    by PeterPotter

    Friday, October 05 2012, 2:59PM

    “where is the incentive to pay your council taxes if these clowns are too ignorant to collect what is already owed ?”

  • Profile image for I_Norris

    by I_Norris

    Friday, October 05 2012, 2:24PM

    “So "Members have agreed to review and write-off debts every six months to avoid large amounts of long-term debt lying on file in future." there not going to aim collect more just write it off more often.”

  • Profile image for mole10

    by mole10

    Friday, October 05 2012, 1:02PM

    “My am I bothering to pay my Council Tax?”

  • Profile image for truestokie

    by truestokie

    Friday, October 05 2012, 12:44PM

    “Great I'll stop paying my poll tax and see if they write it off in a few years because they are too bone idle to collect it.”

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