Source · Select Committees · Housing, Communities and Local Government Committee
Second Report - Council Tax Collection
Housing, Communities and Local Government Committee
HC 57
Published 1 December 2023
Recommendations
2
Accepted
Para 16
Clarify Council Tax Regulations regarding local authority discretion for unpaid balance repayment.
Recommendation
We strongly urge the Government to clarify the provision in the Council Tax (Administration and Enforcement) Regulations 1992 that requires the unpaid balance to become payable in certain circumstances. If local authorities do, under this provision, have the discretion not …
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Government Response Summary
The government acknowledges the need for clarity regarding council discretion on council tax repayment timelines and commits to writing to all councils to stress their flexibility and encourage affordable repayment plans.
Ministry of Housing, Communities and Local Government
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4
Accepted
Streamline the council tax liability order process, allowing bulk and virtual applications.
Recommendation
The process for obtaining a liability order is inefficient and can hinder, rather than aid, the collection of unpaid council tax. We therefore strongly recommend that the Government make the liability order process less burdensome, including by allowing bulk applications, …
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Government Response Summary
The government states that bulk applications for council tax liability orders have been common practice since 1992, and virtual hearings are already lawful and remain an available option for magistrates’ courts.
Ministry of Housing, Communities and Local Government
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Conclusions (5)
1
Conclusion
Accepted
Para 15
The Council Tax (Administration and Enforcement) Regulations 1992 requires the year’s unpaid council tax balance to become payable in certain circumstances. This provision, and the speed with which it is applied, can be the catalyst for someone’s debts to quickly escalate. It is not clear, however, how much discretion local …
Government Response Summary
The government acknowledges the committee's concern about clarity regarding council discretion for council tax repayment plans and commits to writing to all councils to stress their flexibility and encourage affordable repayment plans.
7
Conclusion
Accepted
The localisation of council tax support, and local government’s increasing reliance on revenue from council tax, has put local authorities in the difficult situation of occasionally having to collect council tax arrears from those in financial need. In this context, it is all the more important that their approaches to …
Government Response Summary
The government acknowledges the committee's views and responds by outlining the existing statutory framework for council tax collection, which includes multiple communications and allows councils the discretion to offer flexible repayment arrangements and assess discounts, suggesting current practices already take account of an individual's ability to pay.
8
Conclusion
Accepted
Para 40
Council tax is unlike other debt, in that it recurs annually, so it is in the interests of residents that arrears be collected swiftly so they do not quickly escalate. However, if an individual genuinely cannot afford to pay, rushing to take recovery or enforcement action will only waste a …
Government Response Summary
The government acknowledges the committee's views and outlines the existing statutory framework and guidance for council tax collection, which allows councils flexibility for repayment arrangements and assessing discounts, suggesting current practices align with the spirit of the conclusion. It also confirms no plans for a statutory code of practice.
12
Conclusion
Accepted
Para 64
We welcome the establishment of the Enforcement Conduct Board (ECB), and, most recently, the launch of its accreditation scheme, but we regret that the ECB is dependent for its funding on a voluntary industry levy. We are concerned that industry support for the ECB in principle might not be matched …
Government Response Summary
The government broadly agrees with the committee's points, confirming its commitment to launch a review on statutory underpinning for the ECB and stating DLUHC will write to local authorities encouraging them to use ECB-accredited firms.
14
Conclusion
Accepted
Para 84
We welcome the many initiatives, by local and central government, aimed at improving data sharing, particularly the pilots being carried out under the Digital Economy Act 2017 and the creation of the Office for Local Government; but overall we remain concerned that barriers to data sharing are impeding councils’ efforts …
Government Response Summary
The government describes ongoing efforts to improve data sharing with councils, including increasing data scope, delivering improvements to shared data by summer 2024, ensuring councils are aware, and exploring legislative amendments, to help councils identify residents in hardship.