New scheme launched to tackle unpaid taxes in Manchester
Unpaid council tax costs local authorities ten of millions of pound a year.
Last updated 8th Jul 2019
Article: by Sonal Lad
Manchester and Salford City Council are taking part in a trial which aims to combat the issue of unpaid council tax which costs local authorities tens of millions of pound a year.
Working with the Department of Work and Pensions (DWP) and Revenue and Customs (HMRC), the scheme allows councils to gain employer and income information from HMRC for people who have not paid their Council Tax, but received an order to pay from their local magistrates’ court.
Anyone who is not paying the tax but is employed or has an income will be contacted to start paying their debts or it will be directly deducted from their earnings through the employers.
Carl Ollerheard, Manchester City Council’s executive member for finance and human resources, hopes that it will give councils the power to hold people who are avoiding paying the tax to account.
He said: “It is wholly unfair that there is a minority of people in the city who benefit from, but refuse to contribute to, the collective pot at a time when local authorities are relying more and more heavily on Council Tax to deliver vital services.”
Council tax in England and Wales is currently used to fund a number of local services such as public transport, police and fire services and leisure and recreational facilities.
The introduction of the scheme comes after previous attempts to recover missing council tax became ineffective if someone failed or refused to provide employment details.
Bill Hinds, Salford City Council's lead member for finance and support services, says that the crackdown is aimed at people who can afford to pay the tax.
He said: “Anyone who needs debt advice as part of this scheme will be offered it; we have launched Better Off coffee and chat sessions to help people who are struggling to pay their council tax in any circumstances and always encourage anyone in that position to speak to us as soon as possible.”
If someone is found to be unemployed or does not hit the low-income threshold, their debt will not be taken automatically.
The councils are working closely with national debt advice charities to support vulnerable residents and those who are unable to pay their taxes should contact their local authority to discuss their situation.
The scheme will initially last one year in these 29 authorities before being reviewed.
A decision will then be made to whether it is rolled out to all the Councils in England and Wales.