Agenda item

To receive a report setting out the Council’s use of Enforcement Agents as part of the  Council Tax arrears recovery process.

The Committee received a report setting out the methodologies used by the Council to maximise the collection of council tax in the Borough.

The Committee was informed that council tax was levied on 37,947 domestic properties in the Borough, with a total net collectible debt of £86.804million being due in 2022/23 with the money being collected on behalf of the Borough Council, Surrey County Council, Surrey Police and Crime Commissioner and the Parish Councils.  In 2021/22 the Council’s Revenues Team had collected 99.7% of the council tax owed by residents, this compared to a national average collection rate of 95.9%.

Where a resident failed to make a payment on an instalment due then the following process was followed in an effort to recoup the arrears:

       i.        Where a mobile phone number is held a SMS (text) message reminder is sent.

      ii.        A first Reminder letter is sent giving the liable party 14 days to bring payments up to date

     iii.        If the account is brought up to date but a subsequent instalment is not made then a second reminder letter is sent

     iv.        If the liable party defaults for a third time then a Final Notice is issued

      v.        If no payment is made after the Final Notice then a Summons is issued and a Liability Order is sought through the Magistrates’ Court.

     vi.        Once a Liability Order is granted, the liable party is given 7 days to make arrangements to pay the outstanding amount.  If an acceptable payment plan is not made with the Council then recovery action would be pursued using a range of options including:

·         Making an attachment to earnings order

·         Applying for deductions to be made from benefits payments

·         Applying a charging order against the dwelling in respect of the debtor’s liability

·         Applying for a bankruptcy order

·         The use of Enforcement Agents

Analysis of the point at which arrears were settled had found that the majority of residents who have missed a payment would rectify the situation before the Council goes to court for a Liability Order.  However, there was a small minority of residents who would engage with the Council only when they were visited by Enforcement Agents

It was clarified that where debts were passed on to Enforcement Agents for collection, any costs incurred by the Enforcement Agency were recouped through the agency’s levying of statutory fees, currently £75 per letter, on the liable party, with none of the costs being passed on to the Council.

It was stressed that the Council would prefer to work with residents to reach an agreement at every stage of the arrears recovery process and the Revenues Team worked with Surrey Heath Citizens Advice and Frontline Debt Service to support residents struggling to meet household expenditure.  It was agreed that data relating to the number of residents who had been provided with additional support or advice would be provided.

Members’ discomfort at the use of Enforcement Agents was acknowledged.  However it was stressed that the use of Enforcement Agents was considered to be a last resort and removing the option to pass the debts on to an Enforcement Agency would result in a higher level of defaulting. 

It was clarified that the automated telephone calls from Voicescape software, which enabled those in arrears to be directly connected to the Council’s Revenues Team, registered on telephones as being calls that were coming directly from the Council.  It was agreed that more information about this system would be circulated.

It was noted that the in 2021, Surrey Heath Borough Council were the highest performing local authority in the country for the collection of National Non Domestic Rates (NNDR or Business Rates) with 99.8% of NNDR collected, compared to a national average of 95.5%.  It was agreed that comparator data would be shared.

The Committee noted the update