Council tax to rise... but £93million goes unpaid
A RECORD £93 million in council tax went unpaid in Scotland last year, according to figures that will infuriate honest householders who face rising bills.
The amount of tax uncollected by local authorities is now at its highest level ever, official statistics published last week show.
Meanwhile, research by The Scottish Mail on Sunday suggests that councils around the country are considering increasing tax charges by 3 per cent next year.
The amount unpaid leapt to £93 million last year – more than £15 million higher than in 2015-16.
The SNP has ended the freeze on council tax increases, as well as hiking income tax and Land and Buildings Transaction Tax (LBTT) for middle-class workers and homebuyers. The council tax increase was supposed to deliver an additional £191 million for services such as schools, road repairs and bin collections. However, almost half of that has been wiped out by tax dodgers’ refusal to pay.
Opponents accused the Scottish Government and councils of ‘negligence’ in allowing debts to soar to such a level. Alexander Stewart, Scottish Conservative local government spokesman, said: ‘It’s unacceptable for councils to be owed this much money.
‘No one expects there to be a 100 per cent hit rate in terms of collecting. But allowing the bill to approach £100 million is verging on negligence at a time when local authorities can least afford it.
‘Instead of cutting budgets, the SNP should be helping councils in recovering these debts.’
John O’Connell, chief executive of the TaxPayers’ Alliance, said: ‘The tax take as a proportion of national income across Scotland and the UK as a whole is already approaching a 50-year high. Councils should ensure timely collection of council tax, so as not to require another increase next year.’
The bulk of council funding comes from the Scottish Government, although critics argue this has been cut drastically under the SNP.
Councils also raise billions through council tax and rates.
This year, every council increased their taxes by the maximum 3 per cent allowed. Councils are months away from deciding their 2019-20 budgets, but East Lothian, West Lothian, Perth and Kinross, and Falkirk all said they are planning further 3 per cent hikes. Scottish wages rose by 2.4 per cent on average last year.
A spokesman for councils’ umbrella body Cosla said: ‘Scotland’s councils have a very good record in council tax collection.
‘Councils take their duties seriously to ensure what is owed to them is collected.
‘We need to be clear that the amounts which are outstanding are unpaid, not uncollected. ’
A Scottish Government spokesman said: ‘Councils should take all practical steps to collect the unpaid tax, especially where households are wilfully avoiding payment.
‘People who are finding it difficult to pay council tax may be entitled to relief under the council tax reduction scheme which already assists almost 500,000 households.’