£115m in unpaid tax owed to Tees councils

COUNCIL TAX ARREARS ACROSS ENGLAND AMOUNTS TO A WHOPPING £6.6BN

- By STUART ARNOLD

COUNCILS in Middlesbrough, Redcar and Cleveland and Stockton are each contributing eight-figure sums to a council tax arrears of more than £6bn in England.

Figures recently released by the Ministry of Housing, Communities and Local Government (MHCLG) show the unpaid charges total has hit £6.6bn.

Middlesbrough Council's total amount outstanding stands at £40.6m, based on a figure reported to its executive in June.

Redcar and Cleveland Council's is in the same ballpark - £40.8m.

And Stockton Council told The Gazette at the end of the 2024/25 financial year in March historic overall council tax arrears in the borough amounted to £34m.

In some instances councils can choose to write off such long-term debt, if it is concluded some sums owed are unrecoverable.

Councils have become increasingly reliant on council tax in recent years to fund essential services due to changes in the way local government funding is distributed, which means less as a proportion comes from Government grants.

But this has led to higher bills overall, which debt charities say creates a vicious cycle for residents who are already struggling to pay.

Current rules mean that households can become liable for their full annual council tax bill if they miss one payment, and this can be the trigger which sees councils eventually resorting to bailiffs to attempt to recover debts.

The Government has now set out plans to extend this period, so people have more time to engage with local councils and seek support. It has also signalled its intent to reform the way councils are financed.