Over £5m owed in council tax and business rates

Over £5m of Rochdale’s council tax and business rates have gone uncollected. 

Figures, released by the GMB Union, show that £3.4m of council tax and £1.9m of business rates, a combined total of £5.3m, was uncollected between April 2010 and April 2011, putting Rochdale 10th in the North West regional table.

Rochdale Council dispute the figures and say the correct figures are £3.4m for council tax and £1.7 for business rates, a combined total of £5.1m not £5.3m.

The gross collectable amounts were £105m for council tax and £67m for business rates, a combined total of £172m - 97 per cent of total income due was collected in 2010/11.

A spokesman for Rochdale Council said further collections will be made over the coming months and years and that the council do not ignore the arrears or write them off unless they become uncollectable due to bankruptcy, liquidations, or absconding.

Topping the bill was Manchester, with £9.8m of council tax and £8.7m of business tax uncollected, totalling £18.4m.

Neighbouring Oldham was 13th in the table, with a total of £5m going uncollected, broken down to £3.2m council tax, and £1.8m business tax.

The total amount of uncollected taxes throughout the country was more than £1billion.

Paul McCarthy, GMB regional secretary, said: “It is a scandal and a disgrace, at a time when vital services for our elderly and our children in our local communities are being slashed.”

Simon Bailey, Head of Revenues and Benefits at Rochdale Borough Council, said: “Ninety-seven per cent of total income due was collected in 2010/2011 and since then, up to January 2012, a further £1.7m has been collected, leaving net arrears at £3.4m, or 2 per cent of the total due.

“Ultimately, we will collect 99 per cent of all amounts due. Clearly due to the recession some residents or businesses find they cannot pay on the due dates and we are prepared to accept payment offers over a longer period of time where there is a clear inability to pay. Anybody behind with their payments should contact us to discuss their arrears immediately.”
 
“We have increased up our collection efforts in 2011/2012 and we are on track to increase collection rates this year compared to last year. Where people have the ability to pay but choose not to, the full range of recovery options are used and these include seeking bankruptcy orders, charging orders on the property, and use of bailiffs. Despite these difficult times Rochdale has a collection record to be proud of and those that are paying should be reassured that those that choose not to, are being rigorously pursued.”