LGA response to audit commission report on council tax and business rates
Responding to the audit commission’s report on council tax and business rates collection, David Sparks, LGA chair Cllr, said: “These figures confirm that council tax and business rates have among the highest collection rates of any tax. The exchequer would be billions of pounds better off each year if central government’s collection rates matched those of councils.
“The slight increase in unpaid council tax will come as little surprise to those in local government, who warned that this would be a consequence of government cutting funding for council tax support. This cut has left local authorities with little option but to reduce discounts for people on low incomes, some of whom have found it a struggle to pay.
“The high collection rates for local taxes could be improved still further if government gave local areas more control over them. If councils were able to set council tax discounts locally, we could ensure they are targeted at those who need them most. The backlog in unpaid business rates could be better tackled if councils were able to take into account whether a business is up to date with its payments when deciding on whether or not to grant a licence.
“We are urging the Chancellor to address these issues in next week’s Autumn statement.”
