FAilurE to CollECt tAx millions By CounCil

More than £5.5 million uncollected last year

More than £5.5 million worth of council tax and business rates went uncollected in Peterborough last year. Despite residents being hit with a four per cent council tax rise since April, nearly £3 million of council taxwentuncollected the previous financial year, ontopof £2.7 million of business rates.

Moreover, the council has written off nearly £1.8 million of uncollected moneyoverthe last five years.

Councillor Ed Murphy, Labour and Co-operative member for Ravensthorpe, said: “Failure to collect millions of poundsmeansourcounciltax payers pay more each year to cover the Conservatives’ failures and mistakes.

“I accept that some council and business tax cannot be collected as companies go bust on occasion and some people are impossible to contact, but this should add up to thousands of pounds not £6 million.”

The figures were supplied to the Peterborough TelegraphbyreaderJohnStimson following a Freedom of Information request.

Criticising the ruling Conservatives for raising council tax and increasing members’ allowances by 27 per cent, he said: “Thestaggeringamounts owedincounciltaxarrearsare an absolute disgrace.

“Any chief executive or financeofficerwithinanylarge corporationreportingthislevel of debtwouldsurelyfaceserious questions andtheir jobs put on the line.”

In 2014/15, £169 million of council tax andbusinessrates was collected by the council, with nearly £3.5 million uncollected.

The Peterborough Telegraph reported in September that the council was owed approximately £95,000 from Jimmy’saftertwofirmswhich previously ran the restaurant failed to pay business rates.

Neither firm is currently running the business.

This year’s four per cent council tax rise is due to raise £2.4 million for the authority, and similar rises are also plannedforthenexttwoyears as the council faces huge cuts to its government grant.

Cllr David Seaton, cabinet member for resources, said: “We are very persistent when it comes to the collection of council tax and business rates andwecontinuetochase money that is owed to us long after the end of the financial year for which it is due.

“Forexample, in2015/16we collected £1.1 million in council tax which was owed to us forthepreviousfinancialyear, and a further £889,000 from 2013/14 and before.

“Despite our best endeavoursitisinevitablethatasmall amount of business rates and council tax will not be collected and will ultimately have to be written off.”