Walsall Council owed £1 million in unpaid taxes

The debt dates back to April 2015 when the council introduced a controversial flat 25 per cent rate of council tax for every householder.

Residents on low income previously received a full council tax discount, but this was reduced to a maximum of 75 per cent by the then-ruling Labour group – meaning a bill of around £20 a month.

Three months later it was revealed that, already, 6,600 of 19,465 low income households were in arrears and some £343,000 was owed to the council. Now, six months later, the figure has spiralled to £820,000 and will be more than £1m at its current rate by the end of the financial year.

Councillor Pete Smith, who represents the Blakenall ward, obtained the figures after he posed the question to council leader Councillor Mike Bird at a meeting.

He said: "It was obvious from the start that many of these people, already hit by other cuts and extra charges like bedroom tax, would not be able to afford these new charges. The news £820,000 is now owed was predictable. By the time the financial year ends, the debt will be more than £1m.

"I was opposed to the introduction of this from the beginning. When Labour introduced it they said it would raise £3m, but I said it wouldn't because these people couldn't afford to pay so they wouldn't.

"The only crumb of comfort is that, having sought an assurance from the leader of the council, he said he has no intention of raising the contribution from these 19,000 low income households over 25 per cent."

But Councillor Mohammed Arif, Walsall Council's portfolio holder for shared services and procurement, said the arrears make up less than one per cent of the total collected each year.

He added: "More than 90 per cent of the arrears will be paid by special arrangements which have been agreed directly with individual council tax payers concerned to suit their personal needs.

"It's really important for residents to tell us as quickly as possible if they're struggling to pay their council tax. We work closely with residents to assist them in paying their council tax, such as changing the monthly payment date to a more convenient arrangement – which may include weekly or fortnightly payments.

"We also offer help and advice on how to manage household incomes, how to make money go further, and we can also assist with a 'hardship fund' in exceptional circumstances."