Thousands of council tax dodgers leave city facing shortfall of £15m

THOUSANDS of people have dodged paying council tax in the last year, leaving city coffers £15 million short.

New figures released today show that the number of people who have failed to pay council tax in Edinburgh has increased compared with previous years.

It is thought that the tough economic climate will have contributed towards the rise in non-payments.

In the year to the end of March 2010, 92.8 per cent of council tax that should have been collected was received. It is estimated that the equivalent of around 15,500 households avoided paying any council tax, with non-payers leaving the council 14.9m short. The total amount of council tax remaining uncollected over the last 13 years now stands at more than 120m.

Housing groups say the increase in the unpaid amount is another sign residents are struggling to meet their bills during the recession, but city leaders vowed to continue to press to retrieve the money owed.

Gordon MacRae, head of communications and policy at housing and homelessness charity Shelter Scotland, said: "These figures may indicate some families across Edinburgh are struggling to pay even essential household bills like council tax.

"While people need to pay their council tax, financial help is available for those who are struggling to keep up with payments."

If everyone paid their council tax in the year to April 2010, it would have been worth 205.6m to the council, but the authority only managed to collect 190.7m. The collection rate of 92.8 per cent is lower than the 93 per cent collection rate a year earlier and the first decline since 2003-4, when the collection rate hit a record low of 87.6 per cent.

Councillor Iain Whyte, finance spokesman for the Conservative group on the city council, said: "At a difficult time for council finances, every penny counts, never mind 15m.

"The recession will have an impact but it means that the council has to redouble its efforts in terms of both collection and making sure people are aware of the benefits they could get to help them pay council tax."

City finance leader Phil Wheeler said: "The small decrease in money collected is not surprising, but those who can pay and won't pay should be aware that we will continue to pursue outstanding amounts.

"In these difficult times it is particularly unfair on those who do pay their way."