Local Authorities (Uncollected Debt) (Hansard, 27 March 2003)

§ Mr. Leslie

Central Government do not collect comprehensive information on levels of uncollected local authority debt. It does, however, collect information on local authority rentarrears and business rate arrears.

Local authority rent arrears in England are reported to have totalled about £560 million as at 31 March 2002. Of this, about £350 million were in respect of current tenants, with the remaining £210 million being owed by former tenants. Figures for individual local authorities, and totals for each class of authority, have been placed in the Library of the House.

Arrears of business rates owed to local authorities in England are estimated to have totalled almost £800 million as at 31 March 2002. Figures for individual local authorities, and totals for each class of authority, have been placed in the Library of the House.

Central government does not currently collect information on the level of community charge or council tax arrears owed to English local authorities. The Office of the Deputy Prime Minister estimates, however, that arrears in England at 1 April 2001 totalled £185 million for community charge and £1,435 million for council tax. These estimates are based on information supplied to CIPFA on its revenue collection statistics return, and on information on amounts of community charge and council tax received, which central government collects from billing authorities on the QRC4 return.

After discussions with local government we will, however, be collecting information from English billing authorities on the level of community charge and council tax arrears as at 31 March 2003 on the QRC4 return for 2002–03.

In addition, local authorities have some other types of uncollected debt, such as uncollected fees and charges for services. Information on these is not collected by central government.