I beg to move amendment 1, page 1, line 22, leave out subsection (4).
This amendment would exclude an amendment to paragraph 8(1A) of schedule 4 to the Local Government Finance Act 1992. It would reduce the Bill from covering four areas, to covering only section 47 of the Family Law Act 1996, section 9 of the Anti-social Behaviour, Crime and Policing Act 2014, and section 43 of the Policing and Crime Act 2009.
Why am I concerned about removing provisions relating to local government? Well, I have been instrumental in discussing, in the House and elsewhere, the costs and burdens of council tax ever since it was introduced, consequent upon the failure of the legislation for community charges. I was privileged to help take through this House that legislation on the community charge in the late 1980s. I still meet people who think it was a big mistake to abandon the community charge, which would have ensured that everybody in receipt of local government services, if they were over 18, would have made a contribution. That is all history. It was changed. We introduced council tax, and with it council tax administration and enforcement regulations.
It is those regulations that would now be altered by clause 4 of the Bill. Instead of what is already set out on the ability of the courts to deal with council tax administrative and enforcement problems, it is suggested that those court hearings should be able to be held remotely. In other words, there would not be any proper ability for people to see what was going on. In my view, the deterrent value of such hearings would be lost, because they would be remote hearings, rather than in-person hearings in the local magistrates court.
Let me also mention the extent of the problem we already have with the enforcement of council tax arrears. They are now in the order of £6 billion, as the Minister will know—some £6 billion in council tax arrears. I think almost 10% of that total is attributable to just four local authorities. It will not surprise hon. Members to know that those local authorities are Liverpool, Birmingham, Manchester and Brent. Between them, those four local authorities are responsible for more than 10% of the £6 billion in council tax arrears at the moment.
What are we doing? Why are we trying to reduce the pressure on council tax payment miscreants by enabling them to hide behind remote hearings instead of having to face the music in a proper court of law, where justice can not only be done but be seen to be done? Why should a council tax debtor not be required to attend a court hearing in person? The court can then make inquiries about the person and discuss means of payment. It can all be done with witnesses. The magistrates can see aspects of the demeanour of the defendant in person and take those into account. Most importantly of all, they can ensure that the court process acts as a deterrent against people thinking that paying their council tax is essentially a voluntary activity.
A real debt crisis is building in this country, and not just on council tax. I serve on the Energy Security and Net Zero Committee; we have heard evidence that the arrears on energy payments are now £4 billion or more. Why are we seeking in this Bill to reduce the pressure on people who almost make paying council tax seem voluntary? Why do we not put more pressure on the local authorities responsible for a lot of the council tax arrears?
I am lucky enough to live in the New Forest district council area; it is 286th in the council tax arrears league table; that amounts to about £69 per council tax payer. By contrast, in Liverpool the arrears are £194,721,000, which means that for every council tax dwelling £869 is owing. What is being done to put pressure on Liverpool city council to do something about the situation? The same applies to other councils, including in the area that I am privileged to represent. BCP council is 109th in the league table with more than £45 million of council arrears, amounting to £249 per council tax dwelling. Dorset council, in the other half of my constituency, has £53 million in council tax arrears, amounting to £290 per council tax dwelling. I have tabled the amendment to ask the Minister this: why we are proposing to facilitate remote hearings for issues relating to council tax?
The council tax administration and enforcement regulations enable a council to issue a reminder notice and a final notice. If the debt remains unpaid for more than 14 days after a reminder notice is sent, the council can apply to the magistrates court for a liability order. There will then be a hearing, and if the magistrate finds that the taxpayer has failed to pay council tax, they will order the taxpayer to pay the outstanding sum as well as the council’s costs—that is set out in regulation 34. Once a liability order is granted, the council can use several different enforcement methods to collect the debt. It can instruct an employer to deduct money under an attachment of earnings order, it can make deductions from benefits, it can take control of goods, or it can issue a charging order. In extremis, the council can even initiate bankruptcy proceedings, and ultimately, it can apply to commit the taxpayer to prison if bailiffs have been unable to find goods belonging to the taxpayer that cover the debt.
Given that local authorities possess all those powers under the council tax administration and enforcement regulations, why are they not being used effectively? Why do we think that creating remote hearings is going to improve matters? That seems absolutely ludicrous to me. If ever there were a good use of a magistrates court’s time, it is to ensure that conscientious payers of council tax in the area covered by that court do not have to subsidise people who do not pay their council tax, resulting in the enormous arrears to which I have referred. That is why I am concerned about this proposal.
Remote hearings were introduced during the pandemic and have been used in other circumstances, but the consequence of a remote hearing is that the press and the public are in the dark. One of the best deterrents to council tax non-payment would be for people who are in receipt of liability orders in the local magistrates court to have their names and addresses published in the local paper. That is going to be made much more difficult if the Bill contains references to council tax when it becomes law, so on behalf of all those people who are suffering as a result of the more than £6 billion owed in council tax, I urge the Government not to proceed with this particular part of the Bill. That is why I have tabled my amendment.