Fury as arrears rise £115k in one month
UNPAID rent owed by tenants to Stoke-on-Trent City Council has soared by more than £115,000 in the last month.
The authority has formed an action group to tackle rising council tax and rent arrears as it implements budget cuts of £36 million.
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But figures disclosed at a meeting of the full council yesterday show the amount owed in rent by current council tenants climbed to £1.7 million at the end of August.
Just four weeks earlier the total owed was £1.58 million.
Councillor Mohammed Pervez, council leader, said: "We're doing everything we can and are committed to addressing the issue."
The authority is also owed £1.75 million in rent by former tenants.
Details also revealed at yesterday's meeting show the council is owed £8.85 million in unpaid business rates – a total that has accumulated since 1995/96.
It is in addition to the total £36 million the council is owed in unpaid council tax, rent and sundry debts.
Mr Pervez said the council is already improving its efficiency in collecting taxes and business rates.
He said: "The issue of council tax arrears, business rate arrears and other debts is being looked at.
"A task and finish group is looking at how we can improve the situation and I have also asked council officers to look at this to make sure there is sufficient capacity to resolve it.
"We are 100 per cent behind trying to collect the council tax, rent and the other arrears owed to the council and we'll make sure we progress it as actively as possible."
The council is also to begin publishing the amount it is owed in rates, taxes and rent in every financial quarter.
The move follows criticism from opposition councillors that the authority is losing track of how much it is owed.
The move will allow officers' progress in clawing back the cash to be monitored.
Mr Pervez said: "The figures will be published so people can see our performance."
Councillor Dave Conway, leader of the opposition City Independents group, said: "It's a disgrace, every bit of it.
"People of the city paying their bills will want to know what is going on and why this money is not being collected.
"If things continue at the current rate, with an increase of £115,000 in one single month, we are going to end up in a far worse position at the end of last year than we were last year."
Last year, Stoke-on-Trent City Council had the worst record in the West Midlands for council tax collection.