New figures show that a West London council had the third highest amount of unpaid council tax in the UK as of September last year. Research conducted by ‘SellHouseFast’ using Freedom of Information requests also found that London topped the chart for regions of council tax owed, at a staggering £905 million combined.
Hillingdon Council had the highest unpaid council tax in the capital, and third highest in the UK according to the data. The council was owed arrears of £114.4 million across 17,124 accounts, averaging £6,685 owed per account as of September 2024 though Hillingdon Council says this has now reduced to £65million as of December 31 due to a large number of outstanding payments being collected.
Of the 17,124 accounts, 16,388 have been sent to magistrates court for a liability order. A liability order gives councils additional powers for collecting owed council tax debt, such as sending bailiffs to people’s homes, contacting employers to take money directly from earnings, and applying to magistrates for tax avoiders’ committal to prison. In this same period, 5,192 cases were referred to bailiffs in efforts to make up payment for the money owed, according to the study.
Seven out of ten of the Local Authorities owed the most in council tax are in London.
(Image: Reach Data Unit)
The arrears come at a time when local authorities across the country are strapped for cash. Hillingdon Council recently revealed that in the upcoming budget they plan to increase council tax by 4.99% in an effort to bridge a £39million gap in council finances.
The report cites house value in the capital city for London’s position as the region with the highest council tax. However, according to the Office for National Statistics (ONS) Hillingdon comes 24th out of the 32 London boroughs when looking at average house price as of July 2024, with the average property costing £443,216.
Hillingdon were preceded only by Liverpool and Birmingham City Council respectively, with Liverpool City Council owed an eye-watering £361.8 million, and Birmingham £194 million. Of the top 10 nationwide, seven were London boroughs.
The London boroughs with the highest council tax arrears totalling over £900 million, as of September 2024
(Image: Reach Data Unit)
In London alone a staggering £905 million is outstanding in council tax. Other boroughs with high arrears include Hackney with £71.8 million, Brent with £70.1 million, and Newham with £64.7 million.
As with Hillingdon, many London boroughs are seeking to either raise council tax in their upcoming budgets, or cut council tax support schemes. Brent are planning to increase their council tax by 4.99% whilst slashing council tax discounts so even the poorest pay more. Croydon and Barking & Dagenham are also planning to raise council tax, as Hounslow also prepare to cut council tax support.
The final three boroughs making up London’s top 10 include Haringey, Greenwich, and Bexley. It should be noted that Ealing, Islington, Merton, Southwark, Sutton, and Wandsworth did not provide data relating to amount of council tax owed.
Hillingdon Civic Centre
(Image: Philip James Lynch/LDRS)
Hillingdon Council said: “Our council tax collection rate for 2023/24 was 96.3%. As of 31 March 2024, our historic council tax debt over prior years totalled £33.1 million.
“The figure of £114.4 million, provided in response to an FOI in September 2024, was the in-year figure at that specific moment in time, which also included council tax which had yet to be paid during the current financial year.
“Following payments received since then, this in-year figure has now reduced to £65 million as of 31 December 2024, and this includes the historic debt. This amount will be further reduced when council tax payments for January, February and March are collected.
“The council offers residents many ways to pay their council tax, and the majority pay on time. Where households are having difficulties paying, they can contact the council for support. If there is continued non-payment, or reminders are ignored, the council can take enforcement action, including initiating court proceedings.”
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