Uncollected council tax wastes £47 per household

12.00.00am BST (GMT +0100) Fri 16th Jun 2006

Figures released by the Welsh Liberal Democrats show that council tax arrears in Wales topped £70m for the first time in 2007.

That means council taxpayers in Wales are paying almost £50 extra a year - to cover arrears of non-payers.

And the figures also show that over £7m of council tax debt was written off by local authorities in 2006-7. Almost £19m has been written off between 2004 and 2007 - including £1m of the old community charge.

Mike German, leader of the Welsh Liberal Democrats, said: "Taxpayers are losing out on millions of pounds because it is virtually impossible to collect all council tax. Even the most effective authorities struggle to collect more than 97% of council tax.

"It also costs millions of pounds to collect council tax - an unfair tax which hits the poorest hardest - because the government is unwilling to consider a more practical, and fairer, alternative. Since 1999 the amount which goes uncollected has risen from £55m to more than £71m.

"Introducing a Local Income Tax, deducted from salaries in the same way as income tax is done now, would increase collection rates. Plus there would be savings from having a cheaper collection method. Those savings could help ease the burden on taxpayers.

"The people of Wales are feeling the pinch. The time has come to look again at a fairer way to pay for the essential local services provided by our local councils."

Notes:

Council tax collection and arrears

Table 1 shows council tax arrears for the last three years, this is split into council tax arrears from previous years and that arising during the year.

Table 1 - Council tax and community charge arrears 2004-05 to 2006-07

Source: StatsWales 000397

Table 2 - Council tax and community charge arrears write-offs 2004-05 to 2006-07

Source: StatsWales 000397