Millions owed in unpaid council tax in Walsall

Figures have revealed that there are presently £19.4 million in council tax arrears from the four-year period from 2018 to 2022, while there are £4.8 million business rates outstanding.

Accounts for the current year also show there is £19.9 million council tax owed but that £17.7 million of that is subject to instalments and other arrangements.

The information was highlighted at a full council meeting after independent Blakenall ward councillor Pete Smith submitted questions to the ruling administration.

He said full recovery of money owed would have enabled the authority to freeze council tax and not cut services.

Council leader Mike Bird said: “The council tax arrears for the previous four years (2018/19 to 2021/22) is £19.4 million.

“This arrears balance is 3.4 per cent of the total £564.9 million billed for that period.

“As regards the current year of the £159.5 million billed, £19.9 million remains outstanding, however £17.7 million of that is subject to instalments or the attachment process.

“The business rates arrears for the previous four years is £4.8 million. This balance is 1.9 per cent of the total £252.2 million billed. £5.6 million of the current years business rates bill (£72.5 million in total) remains outstanding with £4.6 million  of that subject to instalments or arrangements.

“Collection, recovery and enforcement of unpaid council tax and business rates continues, using all the options available under the legislation."

Councillor Bird added: “The service uses the best available data to ensure that the recovery method is most appropriate to the circumstances of the resident or business.

“This use of data is even more vital in the current cost of living crisis. For example 53 per cent of the council tax arrears is currently being collected through an agreed instalment plan or through the attachment of earnings or benefit process.

“The remainder being subject to other enforcement action. Arrears are only written off once collection is no longer an option due to either instigation of insolvency proceedings, business no longer in existence, gone aways or the resident or businesses individual circumstances.”

But after the meeting Councillor Smith said: “If this was not outstanding the council could have afforded to hold the council tax as it is without an increase and also resist some of the cuts that it has decided to make.”

From April, council tax bills in Walsall will increase by 2.99 per cent from last year’s level as part of a budget passed at the same meeting.