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Councils write off £10.7m in unpaid taxes

10th April 2008

Local authorities in the South West wrote off £10.7m in unpaid council tax last year, figures released by the Department for Communities and Local Government show.

Although most councils in the region collected 99 per cent of the council tax, the figures for 2006-07 show millions of pounds were written off as officials gave up hope of receiving it.

Campaign group the TaxPayers' Alliance described the figures as "shocking".

"At a time when pensioners are being sent to jail for not being able to pay relatively small amounts, it is shocking that councils are happy to write off millions," a spokesman said.

"Council tax is putting an unsustainable burden on ordinary families, and allowing this hole in the budget to continue adds to that burden."

Spokesman for Tax Payers' Alliance: "At a time when pensioners are being sent to jail for not being able to pay relatively small amounts, it is shocking that councils are happy to write off millions."

Julia Goldsworthy, Liberal Democrat Local Government spokesman, said councils were already facing a tight settlement from central Government and writing off millions of pounds “is only going to make the financial squeeze on council services even worse".

The Falmouth and Camborne MP added: "When councils are already taking extreme measures to collect unpaid council tax, such as using bailiffs and even making people file for bankruptcy, it's clear that the council tax system is failing."

"Council tax is putting an unsustainable burden on ordinary families, and allowing this hole in the budget to continue adds to that burden."

A spokesman for the Department for Communities and Local Government said: "It is the responsibility of local councils to collect council tax and they work hard to ensure that collection rates are as high as possible."

He added that the body would "continue to work with local government to get even better results in the future".

On average council tax bills in Devon and Cornwall will rise by 4.8 per cent this year. Average bills have now topped £120 a month in many parts of the region.



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