Broken Britain 22: 2014 tax law – lowest income households lose, bailiffs gain

Political Concern

Britain’s lowest-income households were exempt from council tax until 2014, when the law changed, bringing 1.4m households into the council tax net, with some jobseekers and the disabled required to pay bills amounting to 10% of their benefits income, according to the National Audit Office report, Financial sustainability of local authorities 2018, (Money Advice Trust note 67)

The Money Advice Trust charity points out that between 2011/12 and 2017/18, central government funding for local authorities fell by an estimated 49% in real terms – leaving councils increasingly reliant on council tax and business rates to fund local services, according to data obtained through its Freedom of Information requests. Its 2018 report A Decade in Debt gives detailed analysis of many kinds of private debt, with a chapter on council tax arrears.

Council tax collection privatised

With most councils lacking the staff to collect arrears the money themselves…

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