Hartlepool's Council Tax Crisis: Over Six Thousand Local Residents Drowning in Debt owing a staggering £4.9 Million Pounds....
- teessidetoday
- Nov 18, 2024
- 4 min read
Figures taken from a report set to go before Councillors next week shows the inherent failures of Hartlepool Borough Councils LCTS system, as the number of households struggling to pay their council tax bills, even with 90% support continues to rise.
18th November 2024
A report set to go before Councillors at an upcoming Finance & Policy meeting next week is set to highlight the growing issue of unpaid Council Tax in Hartlepool, sparking concerns about the sustainability of the current Local Council Tax Support (LCTS) system.
Outstanding Debts and Liability Orders against some of the poorest households are amongst the highest they've ever been...
As of the end of August 2024, the Report discloses the following troubling statistics:
6,831 Council Tax accounts currently have an Attachment of Benefits order in place. These orders are deductions made directly from a persons benefit payments to recover unpaid Council Tax, however, the report highlights that not all of these accounts are associated with claimants receiving LCTS.
A staggering 6,474 Liability Orders at the pending stage. A Liability Order is a legal step taken by the Council to enforce the collection of unpaid Council Tax, allowing them to take further action, such as deductions from wages or benefits, or even in some cases, order bailiffs to visit a persons home..
A total of £4.984 million reportedly outstanding from accounts with an Attachment of Benefits order. Despite efforts to recover these debts, payments are often said to be delayed, meaning the debt is reportedly not settled in the year it was originally due.
No Changes Planned for LCTS Scheme, despite other local councils fully protecting some vulnerable households.
In light of the figures, it's concerning that Hartlepool Borough Council has reportedly decided not to make any changes to the current LCTS system for claimants in the upcoming financial year. The scheme, heavily critisised since it was brought in by the Conservative Government under David Cameron back in 2013 was meant to support low-income residents by reducing their Council Tax bills, but the decision to maintain the status quo at 90% maximum support is said to be perceived as 'short-sighted' according to critics, given the growing number of outstanding debts.
Council Tax bills are going up in 2025...
With Council Tax bills expected to rise across the country in 2025, the financial strain on households in Hartlepool is only likely to worsen. This increase comes at a time when many residents are already said to be struggling with the cost of living crisis, including higher food, energy, and housing costs. The current figures suggest that many families are already unable to meet their Council Tax obligations, and without significant changes to the LCTS scheme, the situation is predicted to deteriorate even further, leading to concerns that even more households will turn to personal insolvency such as bankruptcy or Debt Relief Orders to extinguish whats said to be 'never ending debts' owed to local councils.
Hartlepool Borough Council's approach is also said to raise significant questions about their strategy to manage its growing debt problems. Despite high collection levels, the fact that nearly £5 million in Council Tax Debts remains unpaid indicates the current support methods are grossly insufficient.
Kangaroo Court Hearings for Liability Orders is only fuelling further public anger, especially as it's claimed the vast majority of those being summoned to court for non payment are 'vulnerable'....
The reliance on Attachment of Benefits orders, often heard in secret 'kangaroo court hearings' is said to be doing little to address the immediate shortfall in Council Tax revenue & is only fuelling further hostility towards the local council by local residents. .
Labour Pledged not to increase Council Taxes.
That Pledge appears to have been abandoned !
This situation's likely to have broader implications for the Council’s budget and its ability to fund essential services. As more households begin to fall behind on their Council Tax payments, the pressure on Hartlepool Borough Council to meet its financial obligations without increasing the tax burden on residents will only grow, especially as its claimed the now newly elected Labour Council at Hartlepool Borough Council, elected in May 2024 spent much of time in opposition seemingly against council tax increases, with sources claiming they're getting set to increase Household bills as high as they can go in Late December 2024 or even early January 2025, blaming "the mess the Conservatives supposedly have left them in"....
Its fanning the flames of what could be even more protests in the months ahead...
Disability campaigners argue that Hartlepool Borough Council must urgently rethink its approach to supporting vulnerable residents. With nearly 13,305 accounts currently under some form of debt recovery and the total outstanding debts mounting, it's evident that the system is failing the very people it was designed to protect. The council's decision to stick with the existing Local Council Tax Support (LCTS) scheme without any adjustments is likely to push even more families into arrears, especially when Council Tax bills are expected to rise in 2025.
Rumours are already said to be circulating about potential protests against skyrocketing council taxes set to come in for April 2025 and the government's controversial move to increase inheritance taxes on farmers. This could lead to a massive public onslaught against the government, with some predicting that it could force the Labour Government into an embarrassing climbdown at the very least, or even collapse the Labour Government altogether. With tensions rising, a wave of protests might not only threaten the stability of the Labour-run government but also undermine the credibility of local Labour run councils, as many residents feel they were misled by "false promises.", with the brewing discontent potentially the catalyst for a significant political shake-up at both national and local levels.
