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
6
Rejected
Para 28
Replace council tax imprisonment sanction with alternative deterrents such as bank arrestment or community service.
Recommendation
The Government should amend existing regulations by the end of this Parliament to replace the sanction of imprisonment with more suitable deterrents, such as bank arrestment or community service.
Government Response Summary
The government implicitly rejects the recommendation, defending the existing sanction of imprisonment for wilful non-payment of council tax as a rarely used but necessary tool, and states there are protections in place for residents.
Ministry of Housing, Communities and Local Government
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9
Rejected
Para 47
Current council tax collection guidance lacks specific standards, requiring a statutory code of practice.
Recommendation
The council tax collection best practice guidance, issued by the Department for Levelling Up, Housing and Communities in 2021, does not set out specific standards expected of local authorities. We agree with the Government that local authorities’ need some discretion, …
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Government Response Summary
The government rejects the implicit recommendation for a statutory code of practice, stating it has no plans to replace existing guidance with a statutory code and prefers local authorities to retain discretion.
Ministry of Housing, Communities and Local Government
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10
Rejected
Para 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 …
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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.
Ministry of Housing, Communities and Local Government
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17
Rejected
Para 87
Publish research assessing council tax support schemes and comprehensive local authority arrears data.
Recommendation
The Government should carry out and publish research to assess different types of local council tax support schemes and how they relate to council tax arrears. In addition to collection rates and levels of arrears, the Government should also publish …
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Government Response Summary
The government rejects the recommendation to carry out research and publish local authority data on council tax support schemes and arrears, stating such research would not be useful and collecting the data would burden councils.
Ministry of Housing, Communities and Local Government
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21
Rejected
Reform council tax through property revaluation, new bands, and wider long-term options.
Recommendation
We stand by our previous conclusions, and those of our predecessor Committee: the council tax regime is in desperate need of reform and updating. We recommend that the Government reform council tax by undertaking a revaluation of properties and introducing …
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Government Response Summary
The government rejects the recommendation for council tax reform, specifically refusing property revaluation and additional bands due to cost and potential impact on low-income households, deferring wider reform considerations to the next Parliament.
Ministry of Housing, Communities and Local Government
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Conclusions (3)
16
Conclusion
Rejected
Para 86
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 …
Government Response Summary
The government rejects the committee's concern that it lacks a national understanding of council tax arrears, stating that the complexity of local schemes and factors makes formal research unhelpful, and it has no plans to collect further data due to burdens on councils.
19
Conclusion
Rejected
Para 100
The entire system for collecting council tax is outdated and not meeting its desired purpose. This has become increasingly problematic because councils are becoming ever more reliant on council tax for their budgets. In 2015/16, council tax made up 49.1% of core spending power. It now makes up 56.9% of …
Government Response Summary
The government rejects the implied need for a revaluation of council tax bands, citing cost and potential negative impacts on lower-income households. It states a commitment to improving the local government finance landscape in the next Parliament, prioritizing stability in the current one.
20
Conclusion
Rejected
Para 101
In November 2022, the Secretary of State agreed there was a case for reforming council tax and said he had asked the previous Minister to look into it. Unfortunately, the previous and current Ministers have since cast doubt on the Department’s commitment to reviewing council tax.
Government Response Summary
The government rejects undertaking a revaluation of council tax bands, citing costs and potential negative impacts on residents, and states it is prioritizing stability in this Parliament while committing to improving the local government finance landscape in the next Parliament.