Councils in court to pursue millions of pounds in unpaid tax

In the first few months of this year alone, every tax-claiming council in Sussex asked magistrates for powers to demand payments from thousands of people who were late paying their bills.

This most recent wave of civil actions for unpaid council tax totals at least £1.7 million across the county against more than 3,000 people.

Figures show in the last three months some £1,763,642 was sought in court by councils across Sussex.

Brighton and Hove City Council went to magistrates for permission to order repayments worth £600,000 owed on more than 1,700 outstanding accounts – the most in the county.

The amounts change as debts are paid, but the figures for the first part of the year suggest the rate sought annually is millions and officers are chasing thousands of debtors.

Rother District Council alone sought repayments totalling more than £1.5 million in the last financial year.

Steve Bell, Conservative councillor for Woodingdean, who sits on the city’s housing committee, said going to court was a last resort and officers worked hard with those struggling to pay to establish a payment plan or to find them support.

He added: “Being unable to pay the bills is a sad circumstance of life for some people.

“Officers do the best they can to help people get a payment plan in place and talk to them on many occasions. But there are some people as well who simply do not pay.”

But Giuseppina Salamone, a welfare rights adviser for Hollingdean-based Case Central, said: “Definitely we have more people coming to us who are struggling to pay their council tax bill.

“We have seen a rise in court cases about this. We have had quite a few already this year.”

The cases, called bulk liability orders, mean local authorities can apply in respect of a large group of unpaid bills at the same time. It saves the councils time and money but also means those failing to pay their bills do not have to appear at court and will not have their details appear on public records.

A city council spokesman said it is a “standard legal procedure” which is “quick” and “cost efficient” which also looks to reclaim unpaid business rates. Residents are given three weeks’ notice and paid bills are withdrawn from proceedings. More serious offenders are still being prosecuted separately.

Even councillors end up in court. Robbie Robertson, former mayor of Peacehaven, said council tax was at the bottom of his financial priorities and he went to court before paying £973 to “see how the system worked”.

The £1.7million unpaid council tax in figures

SUSSEX councils have tried to reclaim at least £1,763,642.12 of unpaid council tax through the courts in the last few months alone for more than 3,000 accounts.

The figures by council:

Brighton and Hove
£600,700
1,373 accounts 

Lewes
£173,952.20
291

Worthing
£60,701.27
96 

Eastbourne
£264,329.97
Number of accounts not provided

Chichester
£99,412.86
189

Mid Sussex
£59,168.94
99

Adur
£57,652.34
96

Horsham
£288,490.90
440

Rother
£100,617.05
156

Crawley
£58,616.59
151

Wealden
Figure not provided
14

'PEOPLE ARE COMING TO US IN TEARS OVER COUNCIL TAX BILLS'

GROWING numbers of people are struggling to pay their council tax and being taken to court as a result.

That is the belief of a welfare advice centre which has been helping Brighton’s poorest families for more than 30 years.

Giuseppina Salamone, a welfare rights advisor for Hollingdean-based Case Central, said: “It’s bankrupting people. People are getting into enormous amounts of debt on credit cards in order to pay their bills. It’s a spiralling situation and leads to homelessness.

“This is even happening to people who work. Rents are also still rising. It’s making people desperate.”

Grace Smyth, manager at St Luke’s Advice Service in Exeter Street, Brighton, offers a council-funded support project called Moneyworks which provides free and independent debt advice.

She said: “We have seen an increase in clients needing support in managing council tax debt. It’s important people are aware that Universal Credit, which is due to roll out fully this year, does not include a council tax reduction. People do need to apply for this separately.”

Even some councillors were threatened with legal action earlier this year when they failed to settle their bills on time.

The figures published by The Argus today are just a snapshot of court proceedings instigated by councils earlier this year to reclaim outstanding debts for council tax. They also pursued unpaid business rates. This gives an idea of the rolling number of civil claims that are being made on a routine basis.

The number of accounts missing payments in Brighton and Hove was 1,700 according to court proceedings in January amounting to around £600,000.

Rother District Council alone sought repayments totalling £1,550,931.75 in the last financial year in 1,998 cases. In court in February the council asked magistrates for help to reclaim £100,617.05 on 156 accounts. Chichester District Council sought a similar amount from a similar number of people in the same month.

Eastbourne sought to recover £264,329.97, and Lewes applied to get £173,952.20 in 291 cases in January. Horsham was seeking to reclaim £288,490.90  in 440 cases in February and March.

Crawley Borough Council, Adur District Council and Mid Sussex District Council all sought payments of around £60,000 for between 90 and 150 accounts each so far this year. 

Worthing Borough Council - seeking around £60,000 from just under 100 accounts - said fewer cases are going before the court because officers offer early help and support who are struggling to pay rather than “only acting when they face significant arrears”.

But Wealden District Council, which asked for orders on just 14 accounts in January, said 98 per cent of council tax is collected every year.

Steve Bell, a Conservative councillor sitting on Brighton and Hove’s housing committee, said officers work really hard to help those struggling to pay their bills, with a good structure in place to set up a payment plan which is more manageable.

He said the council only ever goes to court to seek repayment when this falls through or against people who simply do not pay. Although he said the number of people who deliberately evade council tax is very low.

We are told this is all part of an age-old problem. Rising costs mean council services cost more to run and authorities are constantly battling to make savings, but maintain this support and somehow find other income. At the same time wages are not increasing to match the rate of inflation or living costs.

In the city council tax rose again this year by nearly five per cent - the highest increase possible without having to ask for a referendum on the subject was chosen. This means from this month there is an annual charge of £1,703.81 for the average household.

The cost has increased steadily each year, save for 2012, but by comparison residents in West Sussex have enjoyed a council tax freeze for six years - until this year.

Councillors in Surrey - the richest county in Britain - backed out of plans to hike council tax by 15 per cent to pay for care for disabled and elderly people after claiming the government had offered to help with the funding crisis.

Brighton and Hove City Council leader Warren Morgan rightly asked for details of this alleged deal and said it is only right that this offer of support is spread far and wide.

More serious offenders, including councillors, are still being prosecuted separately in the criminal division of the courts.

In March Richard Godfrey, 53, of Birch Way, Hassocks, was handed a suspended 20 week prison sentence after admitting lying about a change in circumstances for nearly two years between 2011 and 2013. Because he had got a job in this time it meant he should have been paying more council tax to Mid Sussex District Council than he was. He was also dishonest about his eligibility for housing benefit for four years.

For 18 months he has to abide by a curfew and stay home at night between 8pm and 5am until May. He also has to pay a £115 victim surcharge and £120 in court costs. 

Magistrates found the offence so serious Godfrey he needed to be handed this sentence to deter himself and others from flouting the rules again, court records said.

For help and advice call Case Central on 01273 540717 or the Moneyworks on helpline 0800 988 7037.