City leaders promise ‘realistic’ approach to Sunderland families struggling to pay council tax

More than 16,000 households on Wearside will not have to pay anything this year (2020/21) and thousands more saw their bills cut thanks to the government’s coronavirus Hardship Fund.

But local authority bosses have stopped short of suggesting they will be ‘lenient’ to those who miss future payments while the country recovers from the COVID-19 pandemic.

“We’ve recognised people won’t be able to pay in the way they would normally hope to,” said Jon Ritchie, Sunderland City Council’s executive director of corporate services.

“But we have to balance that with need – council tax, at about £100 million in round terms, is a key income source allowing us to deliver council services.

“We can’t simply turn off collection but we also have to be realistic and where people are genuinely struggling our first priority is to come up with a realistic repayment plan.”

Ritchie was speaking at a meeting of the city council’s Scrutiny Co-ordinating Committee.

In normal times, the council’s Council Tax Support scheme can see bills cut by more than 90% in some cases.

In June the government announced new funding worth £150 for any household receiving help through the scheme, slashing payments or eliminating them entirely in many cases.

However, this is only in place for 2020/21, with no indication of extension.

About 25,000 working-age people benefit from help towards their council tax bills through the scheme.

Liberal Democrat councillor Stephen O’Brien predicted large scale job losses in coming months and asked if the council would ‘adopt a more lenient way of collecting council tax’.

Ritchie told the panel reminder notices have been issued for missed payments which pre-date the pandemic but COVID-related debate are not being ‘actively chased’.

But he also instead insisted the local authority was committed to being ‘pragmatic’.

He added: “It’s pointless pursuing a parking fine at the same we’re chasing a council tax deficit, we’re trying to look at things in the round.

“But council tax is a priority debt – ultimately, if we don’t collect that income it does have a knock on effect on the services we can afford to deliver.”

Support your Echo and become a subscriber today. Enjoy unlimited access to local news, the latest on SAFC and new puzzles every day. With a digital subscription, you can see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Click here to subscribe.