18,000 in year chased for council tax debt

MORE than 18,000 people across Oldham were hauled before courts or threatened with cash being seized from wages and benefits or with bailiffs after failing to pay their council tax.

Figures from the Ministry of Justice show 18,837 households or businesses across the borough are being chased for non-payment of their rates for 2008-09.

Summonses are only issued after a series of letters have been sent asking for the council tax payment, including the initial bill, a reminder and a final notice.

Once all options are exhausted, councils apply for a liability order through the courts which can include bankruptcy, liquidation of a business, and prison.

The person or business must also pay £45 court costs along with their outstanding council tax balance.

Councillor Lynne Thompson, cabinet member for finance and resources said: “The appropriate number of reminder notices must have already been issued prior to this process being undertaken. A summons is issued 14 days before the court date requesting them to pay any outstanding balance in full.

“If this has not been paid, the council will request a liability order for the balances that remain outstanding. The court will issue a liability order if they are satisfied that the amount shown on the summons is due from the taxpayer and it has not been paid.

“A liability order gives the council the right to demand information about employment and earnings in order to help decide what course of action will be taken to recover the outstanding debt.

“Oldham Council is committed to ensuring that it recovers all money owed to it in order to provide value for money services and liability orders are a useful and effective tool.”

Shadow communities and local government secretary Caroline Spelman said higher council tax bills were behind the increase.

She said: “Thanks to Gordon Brown doubling the level of council tax, a record number of families are now struggling to make ends meet.

“Three million households last year faced the trauma of going to court and the prospect of a town hall bailiff invading their home.

“The fact that Labour’s union backers and Labour ministers want even higher council tax bills show how out of touch the Labour Party is with the plight of hard-working families and pensioners.

“We can’t go on like this, and only a Conservative Government will help deliver a council tax freeze to offer practical help to working families.”

Nationally, 3.1 million households and businesses in England and Wales were taken to court in 2008-09 for overdue payments up from 2.8 million the previous year and 2.6 million in 2006-07.

Justice Minister Bridget Prentice said: “Enforcement action in respect of non-payment of council tax is entirely a matter for local authorities.

“The Ministry of Justice has made no assessment of the reasons behind the increase in council tax liability orders.”