Second Report - Council Tax Collection

Select Committee
Housing, Communities and Local Government Committee HC 57 1 December 2023
Report Status Government responded
Conclusions & Recommendations 21 items (12 recs)
Source View on Parliament website
Government Response (AI assessment · 21 of 21 classified)
Accepted 7
Accepted in Part 3
Acknowledged 1
Deferred 1
Not Addressed 1
Rejected 8
Government response
Response to Committee's Second Report of Session 2023 - 24 · published 1 Feb 2024
Read the government response ↗ Response on the tracker
Clear

Recommendations & Conclusions

7 results
1 Conclusion Accepted
Para 15
Ambiguity exists regarding local authorities' discretion for council tax repayment plans.
Conclusion
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 Summary
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
Para 16
Clarify Council Tax Regulations regarding local authority discretion for unpaid balance repayment.
Recommendation
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 Summary
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
Streamline the council tax liability order process, allowing bulk and virtual applications.
Recommendation
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 Summary
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
Local authorities must consider ability to pay when collecting council tax arrears from the vulnerable.
Conclusion
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 Summary
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
Para 40
Rushing council tax recovery from those unable to pay wastes resources and causes distress.
Conclusion
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 Summary
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
Para 64
Voluntary funding model for Enforcement Conduct Board is precarious, requiring a statutory review.
Conclusion
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 Summary
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
Para 84
Barriers to data sharing still impede councils identifying vulnerable residents for support.
Conclusion
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 Summary
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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