East Staffordshire Borough Council has revealed that residents and businesses which are not paying their council tax and are failing to take action on their debt problems have left a £1.6 million hole in the local authority’s budget.
The council said that after months of chasing tax debts, it had now been forced to take legal action to recover the money. Burton magistrates have granted multiple liability orders which will allow the council to pursue £260,000 of debt from 498 households in the area. Its debt recovery agents will also work to claw back a massive £1.4 million debt which has been racked up in business rates by 80 companies.
A council spokesman clarified the local authority’s position on tax debt recovery, and advised anyone who is struggling to pay any bills or taxes to seek immediate debt help. He said:
“At East Staffordshire Borough Council we follow the legislation laid down by central government in relation to non-payment of council tax and business rates and we take this responsibility very seriously, as it is unfair to those who pay their bills on time to be carrying those that don’t.
“However, taking individuals or businesses to court is our last option and if council tax payers or business rate payers find themselves in difficulty paying their bills, we urge them to contact us as soon as possible as there may be benefits, discounts or reliefs that can be applied which can reduce the amount to pay.”
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