NE Lincolnshire Council to review how it collects council tax debt
They say they want to focus on prevention
North East Lincolnshire Council is to review its approach to council tax debt collection. In 2024/25, the council instructed bailiffs to recover debts from individuals and businesses on 8,732 occasions.
At its latest full council meeting, a Labour motion to review the way the local authority recovers council tax debt got unanimous support. This will look at elements like the use of enforcement agents, repayment arrangements and early engagement with residents.
It will also consider how to make the council’s approach “focused on prevention, early support and reducing the risk of residents falling into deeper hardship”. The 8,732 referrals to bailiffs by the council last year represents a gradual decline in its use of bailiffs.
It is 3 per cent down on 2023/24, and compared to 2022/23, 30 per cent lower. Figures have been compiled by The Money Advice Trust, whose ‘Stop the Knock’ campaign calls for councils to only use bailiffs as a last resort.
Opposition Labour group leader Cllr Emma Clough (Heneage Ward) moved the proposal, stating the council’s approach to the debt “affects more households in North East Lincolnshire than any of us should feel comfortable with”.
“Many find themselves overwhelmed the moment a single payment is missed,” she warned. Cllr Clough said the local Citizens’ Advice had advised that “council tax arrears are now one of the most common issues brought to them”.
There were 332 such cases they supported last year, and a higher number in 2025. Cllr Clough called the debt recovery system “outdated and unnecessary” and “punitive”. “Nowhere else does a single missed payment result in liability for the full year, followed by court costs and bailiff action before any meaningful contact with residents.”
“We meet people on a regular basis who are frightened to open their doors because their case has gone straight to enforcement.” She argued other councils had shown a different approach works, such as early engagement before enforcement.
“Nobody wants to see any of our residents suffer unnecessary hardship because of debt,” said Cllr Stephen Harness (Conservative – Humberston and New Waltham), the portfolio holder for finance, resources and assets. He repeated a recent council media statement.
“The council cannot stress enough how people who are facing financial difficulties must seek advice as soon as possible. There is support that may be available and seeking help straightaway is an important step to take to prevent the problem becoming worse.” This includes the council’s debt management team, contactable on 0300 3030 0614, option 2.
Cllr Harness and Labour Cllr Matt Patrick (Heneage) both spoke on issues with council tax itself. “Council tax is unfair,” said Cllr Patrick.
“It might sound strange for a councillor to say that, like a butcher promoting veganism, or a publican starting a temperance branch in his own premises,” he said, before noting disparities in payment levels dependent on where you lived. “A property in Grimsby will pay double for a Band D property than in Westminster, with a considerably lower income per person,” said Cllr Harness.
He said the system “may well be broken”, but the council had to “make the best” of the Government-set frameworks. Cllr Kath Wheatley (Labour – West Marsh) said council tax debt warning letters sent out were “scary and almost always unnecessary, because people do want to pay”.
She called for the tightening of mistakes made with letters too. She had had several residents who had paid and kept receipts “yet have still received both letters and on some occasions, court summons”.
Cllr Stephen Holland (Independents for North East Lincolnshire Group – Freshney) noted Government 2021 best practice guidance on council tax collection mentioned North and North East Lincolnshire as best practice for their “enhanced relationships with debt advisors”. “But it is very clear from reading the best practice guidance that we can do more to improve,” he added.