The GMB Union have a history of reporting, at this time each year, on the council tax collected in the previous year. It is important that readers are provided with an accurate picture on how local authorities are performing. It is actually a good news story, although the GMB seek to turn it in to a bad news story.
In June each year, the Government publishes the collection rates for the previous year. The collection rates for 2009/10 were published on June 22, 2010, and this showed that local authorities had collected, on average, 97.1 per cent of the collectable debt by March 31, 2010. The performance was praised by ministers.
This performance needs to be put into context. Local authorities continue to issue bills throughout January, February and March, yet payments may not be received until after the financial year. Therefore, the actual performance of local authorities is much higher.
Council tax and business rates in England are the best collected taxes in the world. As they are based on property (which cannot move), an authority is not only able to establish how much is to be collected (and from whom) but evasion is minimal. A local authority can also set its budget knowing the predicted yield.
Readers need only draw a comparison with other taxes and bills they have to pay to understand the performance of local authorities in collecting council tax.
In summary, readers can be assured that local authorities are doing well. Yes, there remains room for improvement but focus on the collection rates, and remember 97.1 per cent is actually collected; 2.9 per cent may not have been collected by March 31 but the majority of this was received in April and May.
Gary L Watson, Deputy Chief Executive, Institute of Revenues, Rating and Valuation.
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