Millions of pounds in council tax charges were owed by Cardiff residents last year, with a total of £9.7 million recorded as owed to the city council, according to data obtained from Cardiff Council. This amount is higher than the total owed in any single year between 2019 and 2023, with a cumulative total of £19 million recorded as owed in council tax across those years. Grangetown was identified as the ward owing the most in council tax in 2023, with a total of £859,731 owed, followed by Adamsdown with £754,600. In contrast, Tongwynlais was recorded as owing the least that year, with £44,682 outstanding.
A spokesperson for Cardiff Council explained that the total amount of uncollected council tax fluctuates as residents make payments over time. This accounts for the increase in the amount outstanding for 2023 compared to previous years, as there has been less time to recover the debt owed. The Council highlighted that enforcement action is taken as a last resort after multiple attempts to engage with residents have failed. This action is necessary to ensure the recovery of payments, which fund crucial local services such as schools, care for disadvantaged individuals, and services that consume the majority of the council’s budget.
Each year, councils are mandated to calculate their council tax base and determine an ultimate collection rate. The ultimate collection rate reflects the final outcome of council tax collection achieved over multiple years rather than in a single year. Despite challenges such as Covid-19, the cost-of-living crisis, and the introduction of premiums affecting collection rates in recent years, Cardiff Council has maintained an ultimate collection rate of 98.5% since 2016/17. The estimated ultimate collection rate for 2024/25 remains at 98.5%.
In response to the rising council tax charges, Cardiff Council approved a 6% increase this year, along with an additional council tax premium for long-term empty properties. Homes left unoccupied and unfurnished for over a year now face a 100% premium, while those left vacant for two years or more face a 200% premium. The Council advised residents facing financial difficulties to seek support, including discounts and exemptions for eligible households. The Money Advice team offers free assistance and advice on managing debt, maximizing income, and claiming benefits.
As council tax arrears continue to impact residents and local services, the Council emphasised the importance of timely payments and cooperation in resolving outstanding debts. By addressing these issues proactively, the Council aims to secure funding for essential community services while supporting residents in managing their finances effectively.