Liverpool Council is seeking to tighten its policy around collection of council tax after its existing terms became a self-created “obstacle.”
In a bid to provide a clear explanation of the consequences of non-payment, the local authority is rewriting its existing policy, which has created obstacles for itself to actually collect fees. According to a report to be discussed next Friday, Liverpool currently has one of the lowest council tax collection rates in the country.
In 2021/2022 Liverpool’s council tax collection rate was 7.9% lower than the average for all core cities with only Birmingham having a higher level of arrears for the year. The cabinet report said its existing policy makes it explicit that a number of groups are considered ‘vulnerable’ and therefore exempt from parts of the recovery process.
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It added: “However, this classification of vulnerability does not take account of individual circumstances including the ability to pay or the availability of other financial resources and assets. There are many individuals, currently classed as vulnerable, that clearly have the financial ability and resources to pay amounts owed.
“This includes, for example, some landlords who have significant council tax debt but own a number of properties across the city.” As a result, the current system is deemed no longer fit for purpose as it “has brought about a number of unintended consequences that have proven to be an obstacle to effective council tax and business rates collection.”
The council said in its report, the new policy, should the cabinet choose to adopt it, makes it clear that the council will not tolerate wilful non-payment and will apply a rigorous enforcement process in such case. It said: “The policy also sets out in clear terms each stage of the recovery process so that all taxpayers are aware of the consequences of non-payment.
“Each stage of the process becomes more serious, and costs can be increasingly applied to outstanding amounts. Fundamentally the policy makes it clear that if a resident is struggling to pay, the council will always provide support and advice.
“However, those that have the ability to pay, but choose not to, are denying the council and the taxpayers of the city vital funds for essential services and the strongest action will be taken against them. Clearly significant improvements need to be made to maximise the amount collected in council tax and business rates.”
As part of this, a number of new initiatives have been put in place including, a specialist recovery team to investigate and take action against the top 100 debtors.
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