Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 10
10
Rejected
Paragraph: 48
Introduce a statutory code of practice for council tax collection, including affordable repayment plans.
Recommendation
We recommend that the Government replace the council tax collection best practice guidance with a statutory code of practice, to which local authorities would have to have regard. Among other things, this code of practice should set out what steps local authorities should take before applying for a liability order, including the making of affordable repayment plans in which the unpaid balance is spread over the year. If the Government does not do this, it should say why not when it responds to our Report, and explain what measures it will implement to ensure best practice is followed.
Government Response Summary
The government rejects the recommendation to replace existing council tax collection guidance with a statutory code of practice, asserting that a clear statutory framework is already in place for councils, offering flexibility for repayment and support.
Paragraph Reference:
48
Government Response
Rejected
HM Government
Rejected
The Government notes the Committee’s views on introducing a statutory code of practice. There is a clear structure in place for councils when administering the collection of council tax. The current process in place means that the resident will receive at least three statutory communications before enforcement action can be taken. Under this framework a resident will receive a reminder and/or final notice for payment, court summons, and notification that the liability order has been granted; providing the resident with opportunities to get in touch with the council before and after a missed payment to discuss their circumstances. Furthermore, the statutory framework enables councils to consider whether to agree alternative repayment arrangements and assess whether the resident is entitled to, or in receipt of, council tax discounts or reductions when determining next steps for the collection of outstanding council tax bills. Councils are free to take additional steps before moving to enforcement action. For example, several councils have already chosen to sign up to the “collection of council tax arrears good practice protocol”, published by Citizen Advice in collaboration with the Local Government Association. The protocol includes steps councils can take to offer flexible payment arrangements and highlights that recovery actions should be referred to councils where vulnerability has been identified. There is flexibility in the system for payment. Payment of council tax is usually apportioned into ten monthly instalments across the financial year. Residents have a legal right to request payments are made over 12 months instead of ten. There is no legal requirement that the tax must be collected in-year, however timely payments and collections are clearly preferable to avoid households dealing with multiple years of council tax charges. However, there may be situations where a council decides that it is more appropriate to agree a longer term of repayment, which can be more than one financial year. The Government supports councils in offering this flexibility where they consider circumstances to be appropriate.