Uncollected bills could give 6% council tax rebate - German

11.06.54am GMT Fri 5th Aug 2005

Outstanding unpaid council tax in Wales amounts to 6% of the average Band D household bill, new research from the Welsh Liberal Democrats has revealed.

At the end of March 2005 the total amount of council tax arrears in Wales stood at £67.8 million, despite the best efforts of local authorities. The figure is up £2.4m compared to March 2004. On average, Welsh councils collected 96.1% of council tax billed in 2004-5.

Mike German AM, Assembly leader of the Welsh Liberal Democrats and spokesman on local government said: "Taxpayers are losing out on millions of pounds because it is virtually impossible to collect all council tax. Even the most effective authorities struggle to collect more than 95% of council tax.

"Millions or pounds are wasted on collecting council tax - an unfair and inefficient tax which hits the poorest hardest - because the government is unwilling to consider a more practical, more efficient and fairer alternative.

"Introducing a Local Income Tax, deducted from salaries in the same way as income tax is done now, would increase collection rates. Plus there would be savings from having a cheaper collection method.

Lib Dems across the country want to see an end to the unfair Council Tax system

"The Labour Assembly Government has hidden behind the lack of powers in the Assembly in its refusal to introduce a local income tax so far. With greater powers in the future that excuse will no longer exist. The people of Wales know it is time for a fairer way to pay for the essential local services provided by our local councils."