Council Tax Collection

Housing, Communities and Local Government Committee Closed Inquiry
Opened: 15 Nov 2021 Closed: 6 Mar 2024 Parliament page
This inquiry will lookinto council tax collection in England, examining the practices employed by local authorities to collect council tax arrears. The inquiry will also look at other issues including whether there should be changes to the legislation on the recovery of council tax arrears, and how local authority council … Read more
12 Recommendations
9 Conclusions
1 Report
2 Oral sessions
8 Letters
2 Events
Activity timeline 14 events
14 May
2024
Correspondence
14 May
2024
Correspondence
16 Apr
2024
Correspondence
16 Apr
2024
Correspondence
1 Feb
2024
Report published
1 Dec
2023
Report published
18 Jul
2023
Correspondence
18 Apr
2023
Correspondence
27 Feb
2023
Oral evidence
27 Feb
2023
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
18 Oct
2022
Correspondence
12 Jul
2022
Correspondence
Oral evidence sessions 2 sessions
27 Feb 2023
View on parliament.uk
Oral Evidence
Lee Rowley · Department for Levelling Up, Housing and Communities Nico Heslop · Ministry of Housing, Communities and Local Government
6 Jun 2022
View on parliament.uk
Oral Evidence
Alistair Townsend · Institute of Revenues, Rating and Valuation Catherine Brown · Enforcement Conduct Board Councillor Stephanie Cryan · London Borough of Southwark Kevin Stewart · Mid Sussex District Council Paul Whyte · Whyte & Co Ltd Rachel Beddow · Citizens Advice Russell Hamblin-Boone · Civil Enforcement Association
Title HC No. Published Items Response
Second Report - Council Tax Collection HC 57 1 Dec 2023 21 Responded
Recommendations & Conclusions
7 results
Clear
1 Conclusion Accepted
Second Report - Council Tax Collec…
Ambiguity exists regarding local authorities' discretion for council tax repayment plans.
The Council Tax (Administration and Enforcement) Regulations 1992 requires the year’s unpaid council tax balance to become payable in certain circumstances. This provision, and the speed with which it is applied, can be the catalyst for someone’s debts to quickly … Read more
Government Response
The government acknowledges the committee's concern about clarity regarding council discretion for council tax repayment plans and commits to writing to all councils to stress their flexibility and encourage affordable repayment plans.
Ministry of Housing, Communities and Local Government
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2 Recommendation Accepted
Second Report - Council Tax Collec…
Clarify Council Tax Regulations regarding local authority discretion for unpaid balance repayment.
We strongly urge the Government to clarify the provision in the Council Tax (Administration and Enforcement) Regulations 1992 that requires the unpaid balance to become payable in certain circumstances. If local authorities do, under this provision, have the discretion not … Read more
Government Response
The government acknowledges the need for clarity regarding council discretion on council tax repayment timelines and commits to writing to all councils to stress their flexibility and encourage affordable repayment plans.
Ministry of Housing, Communities and Local Government
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4 Recommendation Accepted
Second Report - Council Tax Collec…
Streamline the council tax liability order process, allowing bulk and virtual applications.
The process for obtaining a liability order is inefficient and can hinder, rather than aid, the collection of unpaid council tax. We therefore strongly recommend that the Government make the liability order process less burdensome, including by allowing bulk applications, … Read more
Government Response
The government states that bulk applications for council tax liability orders have been common practice since 1992, and virtual hearings are already lawful and remain an available option for magistrates’ courts.
Ministry of Housing, Communities and Local Government
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7 Conclusion Accepted
Second Report - Council Tax Collec…
Local authorities must consider ability to pay when collecting council tax arrears from the vulnerable.
The localisation of council tax support, and local government’s increasing reliance on revenue from council tax, has put local authorities in the difficult situation of occasionally having to collect council tax arrears from those in financial need. In this context, … Read more
Government Response
The government acknowledges the committee's views and responds by outlining the existing statutory framework for council tax collection, which includes multiple communications and allows councils the discretion to offer flexible repayment arrangements and assess discounts, suggesting current practices already take account of an individual's ability to pay.
Ministry of Housing, Communities and Local Government
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8 Conclusion Accepted
Second Report - Council Tax Collec…
Rushing council tax recovery from those unable to pay wastes resources and causes distress.
Council tax is unlike other debt, in that it recurs annually, so it is in the interests of residents that arrears be collected swiftly so they do not quickly escalate. However, if an individual genuinely cannot afford to pay, rushing … Read more
Government Response
The government acknowledges the committee's views and outlines the existing statutory framework and guidance for council tax collection, which allows councils flexibility for repayment arrangements and assessing discounts, suggesting current practices align with the spirit of the conclusion. It also confirms no plans for a statutory code of practice.
Ministry of Housing, Communities and Local Government
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12 Conclusion Accepted
Second Report - Council Tax Collec…
Voluntary funding model for Enforcement Conduct Board is precarious, requiring a statutory review.
We welcome the establishment of the Enforcement Conduct Board (ECB), and, most recently, the launch of its accreditation scheme, but we regret that the ECB is dependent for its funding on a voluntary industry levy. We are concerned that industry … Read more
Government Response
The government broadly agrees with the committee's points, confirming its commitment to launch a review on statutory underpinning for the ECB and stating DLUHC will write to local authorities encouraging them to use ECB-accredited firms.
Ministry of Housing, Communities and Local Government
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14 Conclusion Accepted
Second Report - Council Tax Collec…
Barriers to data sharing still impede councils identifying vulnerable residents for support.
We welcome the many initiatives, by local and central government, aimed at improving data sharing, particularly the pilots being carried out under the Digital Economy Act 2017 and the creation of the Office for Local Government; but overall we remain … Read more
Government Response
The government describes ongoing efforts to improve data sharing with councils, including increasing data scope, delivering improvements to shared data by summer 2024, ensuring councils are aware, and exploring legislative amendments, to help councils identify residents in hardship.
Ministry of Housing, Communities and Local Government
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Government Response AI assessment · 21 of 12 classified
Accepted 7
Accepted in Part 3
Acknowledged 1
Deferred 1
Not Addressed 1
Rejected 8
Total 12 recs + 9 conclusions
Correspondence 8 letters
14 May 2024 To committee Letter from the Minister for Local Government to the Chair dated 2 May 2024 concerning the Government’s response to the Committee’s Report on Council Tax Collection
Parliament page
14 May 2024 To committee Letter from the UK Information Commissioner to the Chair dated 2 May 2024 concerning the Committee’s Report on Council Tax Collection
Parliament page
16 Apr 2024 To committee Letter from the Chair to the Secretary of State dated 15 April 2024 concerning the Government response to the Committee's report on Council Tax Collection
Parliament page
16 Apr 2024 To committee Letter from the Chair to the Information Commissioner's Office dated 15 April 2024 concerning the Government response to the Committee's report on Council Tax Collection
Parliament page
18 Jul 2023 To committee Letter from the Enforcement Conduct Board to the Chair dated 14 July 2023 concerning council tax collection
Parliament page
18 Apr 2023 To committee Letter from the Enforcement Conduct Board to the Chair dated 28 March 2023 concerning council tax collection
Parliament page
18 Oct 2022 To committee Letter from the Enforcement Conduct Board to the Chair dated 10 October 2022 concerning council tax collection
Parliament page
12 Jul 2022 Letters from the Civil Enforcement Association to the Chair dated 20 June 2022 concerning Council Tax Collection
Parliament page