Swindon Borough Council owed millions in unpaid council tax
A spokesman for the borough council said it is confident that it will get nearly all of what it is owed in the end
More than £30m was owed in council tax to Swindon Borough Council at the end of the 2024-25 financial year.
And while recovery of that would seem to be a significant way to solve the council’s financial struggles, Euclid Street says it has already reduced in the four months since the figures were compiled, and it is confident to getting most of the money it is owed.
Figures compiled by the government at the end of the financial year in March showed that Swindon was missing £30.7m in unpaid council tax – that’s part of a national council, tax arrears figure of £6.6bn.
With councils up and down the country struggling for cash, that’s a huge amount to go missing.
£30m is more than double the £14.7m the council’s anticipated income for its 2025-2026 budget was short of its expected spending – a figure which will only be covered by selling off some assets with permission from Whitehall.
But a spokesman for the borough council said it is confident that it will get nearly all of what it is owed in the end.
The spokesman said: “These figures relate to unpaid council tax which, in some cases, goes back many years. It is kept on our balance sheet because we try to recover as much of the money that is owed to us as we can, even if the debt is from a long time ago.
“Most of the money still owed is from the last few years and we are constantly recovering it as we progress through the financial year and beyond.”
The spokesman added: “For example, since those figures were taken, the overall figure has reduced to £28.3m.
“We recover the vast majority of our outstanding debt. In fact, our council tax collection rate for each financial year is around 98 per cent, which compares very favourably with other councils across the country.”
Figures released by the Ministry for Housing Communities and Local Government says the England average collection rate is 93 per cent, over the last five years, while the figure for unitary authorities like Swindon is just a little higher at 93.7 per cent.
But the charity that runs the national debt helpline, the Money Advice Trust says rates of arrears may rise and more and more people struggle to cover increasing council tax bills.
Steve Vaid, the charity’s chief executive, said: “Unless changes are made at a policy level, arrears are likely to keep climbing. At National Debtline, we’re calling for improved collection practices, as well as greater investment in council tax support schemes, to prevent people falling behind in the first place.”