Rochdale Borough Council has reported a significant shortfall in council tax collections, with nearly £20 million going unpaid over the last decade. According to the council's statement of accounts for 2024/25, the total amount of uncollected council tax since 2016 stands at £19.5 million.
Declining Collection Rates
In the 2024/25 financial year alone, the council missed out on £1.3 million from unpaid tax, a decrease from £1.8 million in 2023/24. The in-year collection rate for council tax dropped slightly from 93.6 percent in 2023/24 to 93.5 percent in 2024/25, contributing to the growing deficit.
Impact on Services
The local authority relies on council tax income, along with government grants and business rates, to fund essential services. The shortfall could affect the support and services provided to residents.
A spokesperson for Rochdale Borough Council stated: "Like all local authorities, the council is not able to collect all of the council tax owed to it. This can be due to a number of reasons, some of which are beyond our control, but we have a range of measures in place to help us recover outstanding debts."
Support for Residents
The council emphasized its commitment to recovering debts and supporting residents facing financial difficulties. "We continue to actively contact residents with council tax arrears and regularly review our approach to collection and the support available to residents who are in financial difficulty," the spokesperson added. Residents struggling to pay are encouraged to contact the council at 0300 303 8870 or visit rochdale.gov.uk/CouncilTax for advice.
Cost of Living Crisis
Council papers reveal that 19,676 residents are in need of council tax support, a figure attributed to 'economic uncertainty,' commonly known as the cost of living crisis. Council tax charges are based on a banding system determined by property valuation. Each year, the council estimates the equivalent number of Band D properties after adjustments for discounts and exemptions. The net budgeted spending, including precepts and levies, after accounting for government grants and business rates, is divided by the tax base to set the headline council tax rate for Band D properties.
