The Strategic Director Corporate Resources will submit a report

(Document “V”) which examines performance in relation to Council Tax collection, the Council’s response to new challenges for collection arising from COVID 19, and how taxpayers, particularly the most financially vulnerable, are being supported.

Recommended –

That this committee notes, and gives its view on, progress in the collection of Council Tax .

(Martin Stubbs - 01274 432056)

The Strategic Director Corporate Resources submitted a report

(Document “V”) which examined performance in relation to Council Tax collection, the Council’s response to new challenges for collection arising from COVID 19, and how taxpayers, particularly the most financially vulnerable, were being supported.

The Assistant Director Revenues and Benefits stated that this had been an unprecedented year in the midst of the pandemic, however collection rates remained good despite this, and we were still on target to achieve a good Council Tax collection rate by the year end.

He alluded to the difficulties faced by those on low income and that the Council Tax Reduction Scheme had become less generous over the years, which had had a bearing on collection rates.

The Peer Review with Wakefield Council had also resulted in the Council updating a number of it practices, which was now yielding some positive results..

In the event of non payment, the Council had piloted a scheme, whereby reminders were sent via text and email to encourage people to get up to date with their payments or contact the service if they were experiencing difficulties, again this approach had yielded some good results and avoided action by way of issuing a summons.

During the discussion Members asked a number of questions to which the following responses were provided:

In response to a question on how Bradford compared with its constituent authorities in terms of its collection rates, it was stated that generally we were on par with other Councils in the West Yorkshire region.  However in Bradford we did face some additional challenges, particularly with in year collection rates being lower.

That the gross liability figure quoted in the report also included the Fire/Policy Authority precept.

In relation to a question on Council Tax bandings, it was explained that the majority of the properties in the district were Band A properties, so therefore the additional hardship relief funding did not have any impact on the Band D equivalents, of which Bradford had a lower number in any case.

In response to a question regarding additional Government funding as a consequence of the pandemic, it was stated that the Government had recognised the reduction in Council Tax income as a consequence of a rise in unemployment, so the projected Council Tax base for 2021/22 would be lower and the Government had offset this projected reduction through additional funding.

In relation to a question on in year collection rates, it was explained that historically this had always been low, however this figure generally improved with a 94% collection rate being achieved by the end of the financial year.

In relation to the pilot scheme to encourage payment, it was stressed that by prompting people who had fallen into arrears and bringing their accounts up to date, avoided enforcement action to be taken in a number of instances, and therefore the Service was looking at building on this approach going forward, and that this proactive approach was paying dividends.

It was stressed that some year end collections still posed a challenge and that some court action would be inevitable. 

In terms of writing off a debt, it was explained that all options were explored where there was non – payment of Council Tax, however in some cases, there came a point where all avenues had been exhausted and the only sensible option would be to write off the debt, however this would only done as a last resort.

Resolved –

This Committee thanks officers for the work that they have undertaken, with the extra pressures that have come with the COVID19 pandemic and look forward to future updates.

ACTION: Strategic Director, Corporate Resources