Recommendation 16

The Minister said it was for local authorities to understand the drivers of council tax arrears in their areas, but we believe that central government has a vital role to play in building a national picture of the causes of arrears and in understanding how causes of arrears vary between local areas. We are particularly concerned that the Government has no data on how the level of council tax arrears in an area correlates with the prevalence of short-term private accommodation, where tenants may well move on before the council is able to collect the council tax owed. We are also not satisfied that the Government adequately understands the relationship between levels of council tax arrears and local council tax support schemes. Central government developing a better understanding in this area is not incompatible with localism. In fact, it could support localism by helping councils to adjust their schemes and so reduce arrears.