Birmingham revealed to have highest council tax arrears in England
Arrears now stand at £253.8 million - a 13% increase on last year
Council tax arrears in Birmingham now stand at £253.8 million, the highest of any local authority in England, according to figures released by the Ministry for Housing, Communities and Local Government.
It forms part of a national total, which has now hit £6.6 billion.
The debt advice charity National Debtline says the figures reflect the impact of continuing cost-of-living pressures.
Council tax bills have increased by 7.5% in Birmingham, as the council works to reduce its debt after declaring bankruptcy in 2023.
There have also been cuts to front line services including adult social day care and libraries as a result of the debt.
National Debtline says 25% of people who call them for advice have council tax debt, averaging £1,958 per person, making it one of the top three most common debts its advisers hear about.
Recent Money Advice Trust research also reveals that as of March 2025, 2.2 million people in England (5%) were behind on their council tax bill.
The charity says this suggests many more people in Birmingham could be struggling with council tax arrears who have not yet sought help.
Steve Vaid, Chief Executive at Money Advice Trust, which runs National Debtline, 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.”
"Current rules mean that households can become liable for their full annual council tax bill if they miss one payment, which often results in a quick escalation to bailiff action.
"Last week, the Government set out proposals to extend this period, so that people have more time to engage and seek support – something National Debtline has welcomed, after years of campaigning for this change.
The charity says that progress in this area will help reduce financial hardship, bring down arrears and make a big difference to households struggling to keep up with their bills.
Steve said, “Arrears levels of this magnitude underline the need for urgent action in Birmingham.
“Every day at National Debtline, we see how council tax continues to be one of the most common debts people face.
“Councils have a vital role in helping residents with unmanageable bills and to ensure council tax – crucial to funding local services – is collected in a way that is fair and affordable.
"I would urge anyone in Birmingham worried about their council tax, or any other bills, to seek free, independent advice from National Debtline. Our advisers are here to help and can talk you through your options.”
We've approached the Ministry of Housing, Communities and Local Government and Birmingham City Council for comment.