£600 MILLION OF COUNCIL TAX GOES UNPAID- TEATHER

4.37.58pm UTC (GMT +0000) Thu 23rd Jun 2005

Commenting on new Government figures that show nearly £600m of Council Tax went unpaid last year, Liberal Democrat Local Government Spokesperson, Sarah Teather MP said:

"Council Tax is a bureaucratic nightmare to collect so it's no wonder so much goes unpaid.

"Every family in England could have £30 back if everybody paid their Council Tax. However lots of people don't pay because they simply don't have the money.

"A fair Local Income Tax would be simple and cheap to collect, and wouldn't leave people impoverished by local taxes."

ENDS

Notes to Editors:

1. Councils failed to collect 3.4% of the £17.7bn of Council Tax due in 2004/05, a total of £601m.

2. There are 21,825,000 homes in England. If the £601m was shared between them they would receive £27.50 each.

3. Council Tax and Council Tax Benefit cost £673.3m in 2004/05.

4. The Chartered Institute for Public Finance and Accountancy estimates Local Income Tax would cost £380m to collect, a saving of £290m.

5. Collection rates by local authority below. The worst 10 are Hackney

(84.4%), Manchester (90.3%), Salford (90.6%), Islington (90.6%), Newham (91.0%), Barking & Dagenham (91.3%), Waltham Forest (91.4%), Portsmouth (91.4%), Middlesborough (91.9%) and Nottingham (92%).

6. Collection rates are worst in London, at 94.3% - 92.9% in inner London and 95.1% in outer London.