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£2.4 billion owed in council tax

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Eric Pickles

Council tax arrears in England stand at almost £2.4 billion, Government figures show.

Local Government Secretary Eric Pickles said the figure - the equivalent of £102 per household - proved authorities could protect services and avoid tax rises if they improved collection rates.

Details of the outstanding sums for each billing authority across the country as at March last year were released by Local Government Minister Brandon Lewis, in response to a written parliamentary question tabled by Tory MP Fiona Bruce.

They include historic debts built up over the 20 years since the council tax replaced the Thatcher government's controversial poll tax but not the sums already written off by individual councils over that period.

Mr Pickles used the figures - published a week before local elections in some areas - to accuse Labour of "turning a blind eye to tax evasion".

According to the statistics Liverpool has the highest level of average arrears per household at £528 - a total of more than £113 million. Nine of the 10 authorities owed the most per household are presently under Labour control and the average across all councils run by the party is £143 - more than double the £61 average in Tory areas and £76 in those controlled by the Liberal Democrats.

Labour authorities, which are predominantly in less affluent areas, also showed the lowest collection rate in 2011/12 at 96.2% compared with 98.1% for the Tories and 97.7% for the Lib Dems.

Critics of the Government's reforms to council tax benefit, which will see many low-income families pay council tax for the first time and others face higher bills, say they are likely to worsen collection rates, especially in poorer areas predominantly represented by Labour.

Mr Pickles said: "These new figures show how Labour councils are driving up council tax for law-abiding taxpayers by their neglect. There is real scope for sensible savings to help pay off the Labour Government's deficit and keep council tax down. Every household in the country could get a cheque back for £100 if this tax evasion was tackled."

His Labour shadow Hilary Benn hit back: "Councils make every effort to collect what is owed and crack down hard on fraud, and that's why collection rates have been improving. But times are very tough with families facing rising bills for food and energy. And the Government's decision to hit the very poorest with increases in council tax from this month will make life harder still for those who can least afford it."

(C) 2013 Press Association

 

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