Council tax collections at a high after direct debit drive

Council tax collection rates in Edinburgh have reached record levels despite the recession and the rising cost of living.

New figures show that in 2010-11, the city council collected more of the tax due for that year than ever before.

A total of 93.1 per cent of council tax was collected before the end of the financial year, beating the previous year's 92.8 per cent and also exceeding the annual target of 93 per cent.

Officials said the biggest single reason was the success of a drive to persuade people to pay by direct debit.

They denied there had been any increase in chasing people for payments, despite a series of Evening News stories of people being threatened with legal action over council tax bills which they had paid.

Among them was Isobel Beveridge, 83, from Drumbrae, who was threatened with court over a demand for just 2.79, even though she had paid it. The council said the sum was wrongly paid into last year's account.

A council spokeswoman said there were set procedures which were followed in pursuing non-payment and the council had maintained the same approach for some time.

She said: "The recovery processes have not changed over the last couple of years, so we would not put it down to that at all. It is largely due to the success of the direct debit campaign. Over the last year, there has been a five per cent increase in the number paying by direct debit."

A report to the council finance and resources committee said: "Despite continuing difficulties with payment given the wider economic environment, the council exceeded target and achieved its best-ever in-year level of collection in 2010-11.

"The department also met its target of having over 60 per cent of council tax accounts paid by direct debit by the year-end, contributing both to increasing the overall collection rate and reducing administrative costs."

City finance leader Councillor Phil Wheeler welcomed the latest figures. He said: "The council has made determined efforts to improve council tax collection rates, which have now reached their highest figure ever.

"It's important we continue this upward trend as those not paying are having a direct impact on the vital services the council provides for the city.

"This is unfair on the increasing number of our citizens who do pay promptly and it is only right that the council looks at ways to ensure that everybody pays their share on time."

Collection of business rates remained static at 96.36 per cent, short of the 97 per cent target. The report to the committee said the main reason for the shortfall was the difficult economic situation.