Lib Dem/Tory Southwark Council now has the lowest rate of council tax collection in London and third worst in the country, according to new figures released by the government last week (25/06/09). In the previous financial year the borough was third worst in London and fifth in the country.

Since 2005/06 the borough’s collection rate has fallen by 1.3% from 93%, equivalent to over £1 million less tax being collected every year. It has fallen by 0.8% in the last year alone, from 92.5% to 91.7%.

Following pressure from the Labour opposition due to consistent underperformance, in February the coalition executive announced that it would drop the council tax collection contractor, Liberata, from 2011.

Southwark Labour’s resources spokesman, Cllr Richard Livingstone said:

“Almost one in ten people in this borough don’t pay council tax. That means that the amount that the rest of us have to pay is higher than it should be. It means that the council doesn’t have the money to spend on vital services that other councils do – we would have £5m more in the kitty if we were at the average rate for England. Cracking down on people who don’t pay, and efficiently helping those who want to, should have been one of the Lib Dems’ top priorities when they came into power; instead they’ve let the situation get much, much worse.

“Even more worryingly, these figures show that our collection rate isn’t just low, it’s falling even further. It’s possible that by this time next year the Lib Dems will have dragged Southwark’s collection rates down to 90%. I don’t think Southwark residents will think that’s acceptable; I certainly don’t.”

NOTES

1)                 Since 2005/06 Southwark’s in-year council tax collection rates have been:

2005/06 – 93%

2006/07 – 92.3%

2007/08 – 92.5%

2008/09 – 91.7%

2)                 In 2008/09, one percentage point of uncollected tax was worth £940,420 in lost revenue. 

3)                 Lambeth’s collection rate in 2008/09 was 94.2% and Lewisham’s was 93%

4)         All figures on collection rates can be found here: http://www.communities.gov.uk/publications/corporate/statistics/collectionrates200809