Union calls for greater council tax collection powers as uncollected council tax and business rates figure exceeds £1bn

The GMB union has published the results of its survey into uncollected rates of council tax and business rates across England and called on local authorities to increase the powers available to councils to chase unpaid debts.

According to the union’s figures, the total amount of uncollected council tax in England was £633m while unpaid business rates totalled £432m in the 2009/10 financial year. In Wales, the uncollected council tax was more than £43m.

London boroughs had the highest levels of uncollected tax, being collectively owed more than £257m in council tax and business rates, followed by the south-east (£154m), the north-west (£150m) and Yorkshire (£111m). The GMB’s figures are collated from official figures for uncollected council tax for the year published by the Department for Communities and Local Government for England and by the Local Government Finance for Statistics Scotland and National Assembly for Wales.

The GMB called for the rules to be revamped to make non-payment “almost impossible”, recommending that landlords should be given the right to collect council tax from tenants when they pay rent.

The union’s general secretary Paul Kenny said: "Uncollected local taxes in the 326 councils in England amounted to over £1,065m in the last financial year. With a further £108.3 million uncollected in Scotland and £43.7 million uncollected in Wales we are left with a massive total of £1,218,015,387 for the whole of Britain.  This level of uncollected local taxes can not be accepted at a time when there are deficits in the public finances which are giving rise to cuts in public services and job losses at a time of high unemployment.

The GMB also criticised complacency on the issue amongst many councils. Paul Kenny said: “Councillors, in past years, have dismissed this annual analysis by GMB and instead claimed to be doing very well. This is not good enough. Instead they should join GMB in asking Parliament to change the rules to make non payment virtually impossible. The poorest in our society and those on benefits have their local taxes paid by central government. So it is not a question of can't pay rather than won't pay."