Sunderland's unpaid tax bill stands at £12.3m

Those living in the city who have missed payments now owe a total of £12.3million in council tax arrears.

In this financial year, the tax is due to raise 14%, or £91m, of the council’s budget with the majority of the budget coming from central government.

Sunderland City Council’s Cabinet Secretary, Councillor Paul Stewart said: “Council Tax helps pay for a range of city services, including adult and children’s social care, and more than 99% of it is collected in the long-term.”

Coun Stewart added: “Unfortunately, not everyone pays on time as some continue to pay after the end of the financial year and the council continues to receive payments in respect of previous years’ council tax arrears.

“These arrears are now £12.3m.

“The council offers weekly payment plans and works closely with organisations such as Citizens Advice and Step Change who offer advice to those residents struggling to pay.

“The council always aims for a fair and equitable approach in collecting any outstanding charges.”

Since last year, the council has been trying to make £74m worth of savings by 2020.

Last year, National Debtline provided debt advice over the phone to more than 350 people in Sunderland.

The charity says that more than a quarter of people who contacted the debtline nationally had council tax arrears in 2017.

Jane Tully, director of external affairs at Money Advice Trust, the charity that runs National Debtline, said: “At National Debtline we are hearing from more people struggling to meet day-to-day costs including for energy and council tax.

“More than one in four of the people we help now have council tax debt, up from just one in seven a decade ago.

“I would encourage anyone struggling to pay their council tax to seek free debt advice as soon as possible.

“Councils have strong powers to make you pay so it is important to start to deal with the situation as soon as possible.”

Since the start of the year, 30% of the people helped over the phone have had council tax arrears.

The area does, however, have a strong record for residents paying their council tax and more than 68% of householders are signed up to a direct debit.

Anyone seeking advice can contact the National Debtline on 0808 808 4000.