Bailiffs are called once an hour as council tax rises
RESIDENTS’ DEBT IS NOW MORE THAN £32 MILLION
BAILIFFS were called every hour in Nottingham over unpaid council tax last year with residents’ debt ballooning to more than £32m.
Figures released by Nottingham City Council in response to a Freedom of Information request show a substantial increase in the amount owed to the authority, resulting in thousands of court proceedings and bailiff referrals in the year leading to February.
As of February 28, the total arrears was £32,353,356, a significant jump from £27,588,367 a year before.
The council disclosed that it frequently resorted to legal action to try to claw back the millions owed, taking 22,275 people to court over their debts in the last year.
The figures showed 32,870 indebted residents were currently in the “recovery stage” at the end of February.
These recoveries regularly involve bailiffs, with 8,926 referrals made to enforcement agents. That works out to more than one bailiff being instructed every hour.
A council spokesperson said: “Enforcement agents or bailiffs are used as a last resort to assess affordability to pay and set long-term payment arrangements where appropriate.
"Before enforcement agents are used, customers are supported with a number of options to pay and provided with details of additional support available.”
Almost 23% of Nottingham council tax payers receive help with payments from a support scheme.
The money generated from council tax – mostly based on a home valuation as of April
1, 1991 – funds education, social services and cultural services in the city as funding from the Government does not cover these costs.
A council spokesperson added: “An assessment is made as to the appropriate collection rate to use when the level of council tax is set.
For 2024/25 the collection rate used is 97.5% which is a typical rate for good performing authorities.
“No council ever collects that percentage in year but does meet that target over the life of the liability.” This month, council tax for those living inside the city boundary rose by 4.99% – the maximum amount allowed without a referendum.
However, the cash-strapped city council has applied to the Government for permission to increase it beyond the current cap – which along with deep cuts to services would give it a balanced budget. Birmingham City Council was given this permission and subsequently hiked its tax by 21%.
The increased demand for services and internal financial issues forced Nottingham City Council to issue a 114 notice late last year, followed by the Government’s decision to appoint commissioners to help run the city in February. The council’s leadership says reduced Government funding has been a crucial factor, with the grant funding it receives cut by £97m over the past 10 years.
Before enforcement agents are used, customers are supported with a number of options
City council spokesperson