31m of tax goes uncollected by east London council

"Almost 31 million of council tax has gone uncollected in Newham since 2018, town hall chiefs have revealed. A report presented to councillors says Newham Council has consistently had one of the worst tax collection rates in London. The revelation comes as the town hall is considering raising council tax by almost 9 per cent next year, along with deep spending cuts."

"Martin said that most council tax collection rates fell during the pandemic, but that Newham had lacked rigour in its efforts to recover. He said: Covid disrupted all kinds of things in numerous ways. Every council is impacted by that, Newham is no different to any other council. It is clear that in our recovery immediately after Covid it looks to me from the data here that we took our eye off the ball."

Almost £30.84 million of council tax owed by Newham residents between 2018 and 2024 remains unpaid. Newham Council has consistently had one of the worst council tax collection rates in London. The council's collection rate for 2024/25 was 89.9%, compared with a London average of 94.9%. The council also had the second-lowest collection rate for each of the four financial years from April 2020 to March 2024. Interim chief executive Paul Martin said recovery after COVID lacked rigour, contributing to lower collections. The council needs to find £53 million to balance next year’s budget and is considering an 8.99% council tax rise and service reductions.

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