COUNCIL TAX

A holistic view of citizen debt is crucial to collection

Many councils are now writing off huge amounts of debt as they lack the resources to follow collection through to payment. Gary Bell believes councils can better collect the large sums of money owed to them.

With budgets being constantly squeezed, local authorities are continuously looking for ways to recoup money. As discussed at a recent Civica Leadership Forum with local government executives, many councils are missing out on crucial money owed to them which could go some way to helping bridge the funding gap.

Rising levels of debt are a serious issue on both sides, with Citizens Advice announcing this year that council tax arrears had risen to become the single largest debt issue for the people it helps in the UK. While councils will always have to help those struggling to pay, many councils are now writing off huge amounts of debt on a weekly basis as they lack the resources to follow collection through to payment; and the cost of writing off this debt is enormous to organisations already so cash-strapped. However, as one Leadership Forum attendee explained: "Debt is an area which is ripe for innovation and data analysis."
 

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