Home » Council tax arrears hit £9.7m in Cardiff for 2023
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Council tax arrears hit £9.7m in Cardiff for 2023

NEARLY £10m was owed by Cardiff residents in council tax charges to the city council last year, according to data from the local authority.

Data obtained by Accident Claims Advice via a freedom of information request to Cardiff Council shows that £9.7m was recorded as owed in council tax for 2023 – more than all of the years from 2019.

It also shows that between 2019 and 2023, £19m in total was recorded as being owed in council tax across those years.

Grangetown was the ward owing the most in council tax in 2023 when the data was recorded (£859,731) and was followed by Adamsdown (£754,600). Tongwynlais was recorded as owing the least that year (£44,682).

A Cardiff Council spokesperson said: “The total amount of uncollected council tax changes regularly as people make payments over time.

“This means that the amount outstanding for 2023 is higher than in 2019, and all the years in between, because there has been less time to recover the debt owed.

“We expect all these totals to decrease as residents continue to make payments and, if necessary, as we take enforcement action to collect payments.

“Enforcement action is only used as a last resort after multiple attempts to engage with a resident have failed.

“It is a tool of last resort, but it is necessary to ensure the Council recovers these payments, which help fund vital local services like schools, and care for disadvantaged children and the elderly, services which take up the vast majority of the council’s budget.”

Every council is required to calculate its council tax base each year.

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The council also regularly works out what is called an ultimate collection rate.

The ultimate collection rate reflects the final position of council tax collection achieved after a number of years rather than the in year position.

Since 2016/17, Cardiff Council has used an ultimate collection rate of 98.5%.

A council report on council tax base published in December 2023 states that there have been reduced in-year collection rates in the last few years due to Covid-19, the cost-of-living crisis and the introduction of premiums.

The report went on to add that it is still too early to determine whether these factors will have an impact on the ultimate collection rate or whether the rate will continue to be achieved but over a longer period of time.

The estimated ultimate collection rate for 2024/25 was still placed at 98.5%.

Council tax rose by 6% in Cardiff this year, and in March the local authority voted through an increase in council tax premiums for long term empty properties.

In 2023, homes that were left unoccupied and unfurnished for more than a year faced a 100% council tax premium.

Now, homes left unoccupied for two years face a 200% premium.

A Cardiff Council spokesperson added: “We do understand that some people may face difficulties in paying their council tax.

“A range of support is available, including discounts and exemptions for eligible households.

“We encourage anyone struggling with money worries to contact our Money Advice team for free assistance and advice on managing debt, maximising income, and claiming benefits.”

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