Council tax guidance issued to millions of UK | U.Ok.Finance News
The quantity of households falling behind on their council tax has soared to 4.4 million – the very best because the aftermath of the 2008 financial crash.New figures show a 40% rise within the quantity of people in arrears in only one 12 months, up from 3.2 million in 2023, in accordance to Debt Justice, a charity campaigning for fairer debt insurance policies.In whole, cash-strapped city halls at the moment are owed an eye-watering £6 billion – up from £5.5bn the earlier 12 months – simply as councils face a £2.3bn funding shortfall.Campaigners are calling on native authorities to urgently rethink their method, warning that punitive hikes and heavy-handed enforcement will solely deepen the disaster.Bailiff crackdownFollowing a marketing campaign by shopper champion Martin Lewis, the Government has introduced it can review how councils use bailiffs to accumulate unpaid council tax.A Government spokesman stated: “Councils have a duty to behave sympathetically and proportionately towards people in hardship when collecting tax and offer affordable payment plans.“The Government will also consult on improving the council tax collection system.”Tax hikes hitting hardDespite the growing debt disaster, 9 in ten councils raised council tax by the utmost 5% this 12 months – driving average payments for Band D houses to £2,280. Second home house owners have additionally been hit, with more than 200 councils introducing a levy that doubles their payments to an average of £3,672.John O’Connell, chief govt of the TaxPayers’ Alliance, warned: “With a record 4.4m people now in council tax debt, town hall bosses should be focusing on helping struggling households, not hammering second homeowners with punitive premiums.“Hiking taxes on one group won’t solve the growing crisis facing millions of others.”Research by the campaigning group Debt Justice discovered that almost all people falling into arrears are from essentially the most financially weak households.The Local Government Association (LGA), which represents councils, insists native authorities do all they will to help residents in problem.Councillor Adam Hug, housing spokesman for the LGA, stated: “All councils make every effort to collect that which is owing to them and 96 per cent of council tax is collected in the year in which it is due.“When there are instances of unpaid council tax, it is often due to complex circumstances or people already facing hardship, and local authorities seek to work with individuals to work out a payment plan and avoid them lapsing into debt.”The figures raise critical questions on whether or not the present model of council tax – set up within the early Nineteen Nineties – is match for goal in a cost-of-living disaster.
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