Labour Councils Face Double the Unpaid Taxes of Tories, Raising Collection Concerns

Labour Councils Owed More in Unpaid Taxes Than Tories

Campaigners are raising concerns about the high levels of unpaid council tax across the UK, with Labour councils facing a significantly larger burden than their Conservative counterparts.

Data reveals that Labour councils are owed a staggering £2.5 billion in unpaid taxes, compared to £672 million owed to Tory councils. This disparity can be partly attributed to the fact that Labour controls 155 councils, while the Conservatives hold only 81.

Further analysis shows that Labour councils are chasing 1.7 times more council tax on average than Tory-led ones, and have 2.4 times more accounts in arrears. This has led to accusations that Labour councils are failing to effectively pursue tax avoiders, placing an additional strain on taxpayers who fulfill their obligations.

Experts argue that local authorities should prioritize improving collection rates and cracking down on non-payers, rather than simply resorting to council tax hikes. The government's decision to approve an increase in council tax rates, exceeding the inflation rate by three times, has also drawn criticism.

Liverpool City Council faces the highest burden of unpaid taxes, amounting to £362 million as of April last year. Birmingham City Council follows closely behind with £194 million in outstanding taxes.

While some local authorities did not provide data for the survey, the available information indicates that over four million accounts are in arrears, representing an average of £1,000 in unpaid council tax per account.

Among the ten local authorities with the highest outstanding council tax, only one is controlled by the Conservatives - Hillingdon, with £114 million in unpaid taxes.

The Local Government Association acknowledges the importance of collecting taxes to maintain essential services and highlights the high collection rate of 96% within a year. However, they recognize the financial challenges faced by many households and emphasize the need for fair collection policies.

The Ministry of Housing, Communities and Local Government emphasizes individual councils' responsibility for tax collection and enforcement, noting the high overall collection rate of 95.9% for 2023-24.