Massive rise in council tax arrears
Due to the iniquitous way the funding formula works rural local authorities have to raise more of their income through Council tax. This article explains why another manifestation
of the recession is bad for them.
The Consumer Credit Counselling Service (CCCS) saw a 27% increase in the number of people contacting it for help with council tax arrears, from 13,353 in 2010 to 16,958 in 2011. The average amount owed in council tax arrears also increased, from £675 in 2010 to £717 in 2011.
The CCCS says much of the increase has been fuelled by the worsening financial position of tenants, with more people who rent than homeowners contacting the charity about council tax arrears for the first time. A total of 8,841 renters sought advice on council tax debts in 2011, up from 6,084 in 2010.