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Cannock Chase District Council owed £7m in unpaid council tax and business rates

Cannock Chase District Council is owed more than £7 million in unpaid council tax and business rates – with an insolvency firm now working with officers to get the required money.

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At the end of September the council was chasing £5.7m in unpaid council tax and £1.7m in business rates. At the same point last year, the council was being owed £5.6m in council tax and £2.6m in business rates.

The overall reduction in money owed to the council has been put down to a growing collection rate, helped by the implementation of new policies approved last year.

The bankruptcy, insolvency and charging order policy has seen the council partner an insolvency firm to process bankruptcy cases. One individual has been made personally bankrupt and nine companies wound up as a result of the applications. Councillor George Adamson, leader of Cannock Chase District Council, said: "We do everything we can to chase down business rates and council tax and take strong action against those who don't pay.

"This is a problem for the council but it is one we are working on.

"Our business rate collections came in at just over 97 per cent last year, which is a strong figure and one I have been told will improve next year.

"We are taking serious action against those companies who don't pay. The council tax payment rate went up last year to just over 96 per cent, which was another improvement for us.

"Again, I have been told we will do even better this year. Obviously with council tax payment, it is a little different to business rates, you are talking about individuals and there is bound to be some legitimate reasons why some people can't pay at certain points.

"Those who are able to pay but choose not to can expect a strong punishment however, as their decision affects services for other people."

Under the new policies introduced in November last year it was decided that action was needed to address individuals and companies who regularly defaulted on their bills, ran up large debts and tried to avoid their debts being recovered.

A new monthly review system was also introduced to help the council keep on top of unpaid council tax and business rates, while it also started to use legal powers it previously hadn't to chase up debts.

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