HL Deb 21 June 1999 vol 602 cc65-6WA
Lord Clement-Jones

asked Her Majesty's Government:

Whether collection agents such as Capita Business Services Limited, engaged by Lambeth Borough Council, are using magistrates' courts as part of the collection process for council tax without first using normal civil enforcement methods; and, if so, whether this is an acceptable addition to the workload of magistrates' courts; and [HL2977]

Whether the Lord Chancellor has plans to ensure that magistrates' courts are used only as a last resort for the collection of council tax. [HL2978]

Lord Whitty

The regulations which govern the billing and collection of council tax in England are set out in the Council Tax (Administration and Enforcement) Regulations 1992. Although local authorities have powers to contract out the billing and collection of council tax, contactors are still bound by these regulations.

The regulations provide that before a local authority can take enforcement action to recover council tax arrears it must first apply to the magistrates' courts for a liability order to formally establish that there is a debt. Once a liability order has been obtained, the administration and enforcement regulations give local authorities a range of powers to recover the debt which include attachment of earnings, deductions from income support and the levy of distress.

Following the grant of a liability order, the magistrates' courts will become involved again in the enforcement process only if a local authority seeks the debtor's committal to prison. Committal, however, is already the last resort in the enforcement process and a local authority can only apply for a debtor's committal to prison if it has at least attempted to levy distress first.