Lewisham council hires bailiffs to recover unpaid council tax amid financial struggles
London: Lewisham council is hiring bailiffs to find people who owe council tax. They plan to spend nearly £2 million on this effort.
Currently, Lewisham has its own enforcement agents. But they want extra help to track down former residents with unpaid bills.
The bailiffs may also approach current residents or businesses that haven’t paid their taxes. This comes as councils face tough financial situations.
Enfield council is also seeking emergency funds from the government to support vulnerable residents. They are asking for £30 million, while Haringey wants £37 million.
A report from Lewisham’s mayor says they need to collect more council tax and business rates. They aim to maximize their income from the 135,000 homes in the area.
Lewisham has about 6,300 businesses that owe around £60 million in business rates each year. They already charge over £2,000 for council tax on many homes.
More boroughs may also raise their council tax rates soon. Lewisham plans to check debtors’ credit before sending them to bailiffs.
This helps ensure they only pursue those who can pay. The council wants to avoid taking action against those who genuinely can’t pay their debts.
Hiring bailiffs won’t cost the council directly. The bailiffs will take their fees from the payments made by debtors.
They can also recover debts by deducting money from benefit payments if needed. Selling goods is rare and will only happen as a last resort.
Lewisham aims to hire three bailiff firms, with contracts worth nearly £2 million. This is a concession contract, meaning the contractor gets paid through a third party.
Enfield’s deputy leader mentioned they are also seeking financial support due to years of underfunding and rising demands for social care.
