As councils in Wales increased their debt collection rate by 16 per cent, the arrears on council tax payments dropped by £2.1 million. Through 2010 to 2011, they brought in an extra £4 million that had stood in arrears.
The percentage of tax councils were able to collect varied from 98.2 per cent in Denbighshire to 94.5 per cent in Cardiff. Conservatives in Wales have stressed that if Welsh local authorities reached a 98.2 per cent council tax collection rate, Welsh councils would be almost £18 million better off. The additional council tax payments collected will be reinvested into vital council services, thus benefiting local residents. Steve Thomas, Welsh Local Government Association Chief Executive, told Wales Online: “Councils recognise that they have a duty to all taxpayers in their area to ensure that those who should pay taxes do, so that this money can be reinvested into vital council services, however at the same time it is a balance between collecting and helping people who are in financial difficulty. Today’s figures show that council workers have got that balance right. “Councils have been working closely with the WLGA, Welsh Government and the Citizens Advice Bureau to offer people practical support to help them make their payments; from practical suggestions to providing people with access to the financial support they need. They have also been proactive in making people aware of the council tax benefit which they may be entitled to and helping them in making their application. “Councils’ main aim is to help people address their difficult financial situation before they get to an unmanageable level of arrears and today’s figures show that their approach is working. Every council in Wales continues to urge any citizen who is experiencing financial difficulty to contact them for advice and information.” On March 31 this year the amount owed to local authorities still stood at £81.2 million, despite Welsh councils bringing in an extra £4 million in arrears in 2010-11. Kerry feather, head of finance, told Wales Online: “We are very pleased that despite the difficulties being faced by people as a result of the economic downturn that we have been able to increase the amount of council tax collected in the year and have worked positively with those who have experienced difficulties to reduce the level of arrears.” William Graham AM, Shadow Minister for Local Government, told Wales Online: “While it may be somewhat unrealistic to expect councils to collect 100 per cent council tax, they do have a responsibility to raise collection rates to maximise the resources available to invest in local public services. If too many council tax payments are left uncollected, this forces up bills for the vast majority of hardworking law-abiding taxpayers.”Manchester debt firm is liquidated owing creditors over £2.2m
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