£2m council-tax debt recovered by courts

OLDHAM Council has recovered more than £2.2 million in council-tax arrears so far this financial year.

Since last April, 109 residents have appeared before Oldham magistrates for not paying, with 40 debtors given suspended jail sentences totalling 3,030 days and one person jailed.

The suspended sentences are on condition of meeting court orders to pay back the full amount due on an agreed schedule, with magistrates making clear that failure to comply would result in imprisonment.

Council chiefs say they are committed to clawing back all public money owed by third parties and operate a firm but fair debt-recovery policy.

This makes a clear distinction between cases of genuine hardship — where people can’t pay — and those who won’t pay and evade for personal financial gain.

Residents have a legal obligation to pay taxes before repaying other debts, such as credit cards, loans or hire purchase.

All costs incurred by the council during the recovery process are included in the final amounts that must be repaid.

In one case Denise Roberts, whose address was given in court as Broomes Park, Chadderton, was jailed for 90 days for unpaid council-tax debt totalling £5,116.53 relating to two properties from 2002 to 2007.

Mrs Roberts said she was unable to pay the debt but the day after she was jailed the amount was repaid in full and she was released, as required by law.

Councillor Lynne Thompson, cabinet member for performance and value for public money, said: “Oldham Council does not tolerate council-tax evasion and we are committed to using all available powers to pursue outstanding debts.

“The money recovered this year is crucial in helping us to protect investment in our frontline services in this testing economic climate.

“We also have a clear duty to all those citizens who do pay council tax to recover unpaid money so that they do not have to make up the shortfall.

“While we are making every effort to pursue those people who won’t pay, we also do recognise that some people have genuine difficulty in paying their bills.”

She said anyone struggling to pay should contact the council immediately to discuss an affordable payment plan.

Contact the council-tax team on 0161-770 6622, email council.tax@oldham.gov.uk  or go to Access Oldham at the Civic Centre.

The council is implementing a new debt-recovery policy to ensure a fair and consistent approach is used to recover money owed by third parties.