Council tax collection – Levelling Up Committee questions Minister
The Levelling Up, Housing and Communities (LUHC) Committee questions Government Minister Lee Rowley for the Committee’s inquiry on council tax collection in England, examining the practices employed by local authorities to collect council tax arrears.
Meeting details
The session is likely to examine issues such as the growth in council tax arrears, support available to vulnerable and low-income residents, the practices of enforcement agencies, and the role of the new Enforcement Conduct Board.
The Committee’s inquiry is also looking at other issues including whether there should be changes to the law on what happens if somebody misses a council tax payment, and the Government’s wider plans for reforming council tax.
Non-payment of council tax is not a criminal offence. However, statutory regulations – the Council Tax (Administration and Enforcement) Regulations 1992 – allow people to be sent to prison through a civil process (a ‘committal order’) for up to three months for non-payment of council tax. England is the only UK nation where local authorities still use this power.
The LUHC Committee’s inquiry comes in the wake of the impact of COVID-19 on council tax arrears. In January 2021, Citizen’s Advice estimated over 3.5 million people were behind on their council tax, and that 51% of those weren’t behind before the pandemic. Government figures indicate that at end of March 2022, the total amount of Council Tax outstanding amounted to £5 billion.
During the pandemic the Government gave councils funding to offer a further reduction to those who already receive support with their council tax bill through their local authority, distributing £500 million in 2020-21 and £670 million in 2021-22. In 2022-23 the Government provided a £150 council tax rebate for all Band A-D households as well as £144 million in discretionary funding for councils. In 2023-24 it will provide £100 million for councils to reduce council tax bills by £25 for those who currently receive council tax support from their local authority.
On Monday 6 June 2022, the Levelling Up, Housing and Communities (LUHC) Committee questioned representatives from local councils, Citizens’ Advice, Enforcement Conduct Board, Institute of Revenues, Rating and Valuation, and the Civil Enforcement Agency for its inquiry on council tax collection. The Committee had scheduled an evidence session with the then Minister, Rt Hon Kemi Badenoch MP, on 11 July, which was subsequently cancelled due a change of ministers in the Department.