Wednesday, January 9, 2008

2.3 million households not paying council tax

Millions of bills going unpaid in the past six months as household budgets stretch to breaking point

Household budgets across the country are being squeezed to breaking point with millions of bills going unpaid in the past six months alone, according to new research by MoneyExpert.com...The independent financial comparison website says as many as 6.9 million bills went unpaid since June last year and warns that many more people's finances could begin to feel the effects as energy prices begin to rise again and credit becomes increasingly hard to come by. The MoneyExpert.com figures show that of all household bills people are most likely to overlook their council tax bill, with a staggering 2.3 million** people - around one in twenty adults - claiming to have paid their council tax late or not at all in the past six months.

Posted by converted lurker @ 10:26 AM (852 views)
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12 thoughts on “2.3 million households not paying council tax

  • interesting, so next councils will be moaning they have no money because of this and put them up again??

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  • japanese uncle says:

    “When the money is gone, it’s gone” will be the key phrase. Councils will be forced to shed its workforce in avoid default, acccelerating the unemployment. In 12 months time, economic landscape will be a hell rather than a limbo as we see right now.

    This is a fate in store for any economy in which every player is deeply stuck in heavy leverage. One fallen card will sweep the whole thing while you are gaping in blank amazement, as everybody from the poor to the wealthy is operating with such a thin margin.

    Again the due date of 1.4 trillion is nigh.

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  • Council Tax arrears don’t show on credit file checks, so don’t affect getting more credit. BUT, unlike general debt, you can go to prison for not paying C/Tax! Either way means bailiffs and poss repossession, more houses forced on to the market so lowering prices.

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  • to be honest i kind of hope our local council gets in deep doo doo…lol it will teach them to treat us “the commoners without brains” with soo much contempt…………………..

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  • tyrellcorporation says:

    Imagine the costs too of taking these miserable saps through the local courts to extract the cash or take away their 50″ plasma screens and Touaregs. What a mess New Labour has created!!!

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  • The unfunny thing is that all the property speculators who get stung will keep their plasmas and big tellies but will stop paying council tax. The council will increase the tax to cover expenditure, and that means that all of you will end up indirectly bailing out the speculators.

    Again.

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  • JU: You’re right, councils will shed jobs eventually. Local councils only draw about 25% of their income from local taxes – most of the rest comes in the form of a block grant from central government. Not only are council tax receipts in danger, but the block grant will be in danger too as general tax receipts fall. There will be job cuts across the board.

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  • Tyrell: I was once summoned to court because my flatmate hadn’t paid the council tax. Flat-sharers are jointly liable: if one of you doesn’t pay then legally you all get called into court to explain. The letter explained that the legal costs (£57 for the local magistrates court) would be added to the amount due, and there were was some vague threat of bailiffs. The next couple of years will be boom-time for bailiffs.

    During the boom times, TV shows included Property Ladder and Location*3. Now there’s a show called “Beat The Bailiff”. I haven’t seen it (I think it’s on during the daytime), but apparently it’s a real eye-opener.

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  • Council services like subsidised transport will be a thing of the past. Night Buses, Libraries etc. It is very bad.

    And yet this is just the beginning; it will become much worse.

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  • Councils are already cutting back on staff through natural wastage in Scotland. Some vacant positions are not being filled for financial reasons.

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  • Council workers are heavily protected by unions. They won’t accept their notice without a long drawn-out fight. It seems more likely we’ll see a hiring freeze in the public sector while they wait for people to retire. There will be cost-cutting in other areas though – one lorry-load of paper-clips instead of two.

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  • Drewster. Some council staff are on temporary contracts. Others have only a few permanent hours and rely on temporary extra hours to make up their income. They are worried about the future and not all are union members.

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