Council Tax: Thousands Prosecuted
Council Tax arrears have risen sharply in Hastings, and more households face court action as JAMES PRENTICE and KENT BARKER report
Council tax debts in the Hastings Borough Council area have seen a significant rise over the past five years. Thousands of people are being taken to court for failing to pay as more and more households fall behind on bills. New data from the council, in response to a Freedom of Information request, reveals a pattern of rising debt, increased enforcement, and growing pressures on household finances.
The number of actual council tax accounts has risen only slightly over the last five years, from 43,781 in 2021/22 to 44,567 in 2025/26, an increase of 1.8%. However, the number of households in arrears has grown at a far faster rate – nearly 16%. In 2021/22, 7,536 ‘accounts’ were behind on payments. By 2025/26, that figure had reached 8,733.
The total value of unpaid council tax has risen even more steeply. The council was owed £3.79 million in 2021/22, increasing to £4.69 million in 2024/25 and reaching £6.31m in 2025/26. This represents an increase of 35% compared with 2021/22. The council’s total budget is currently £17.5 million, of which £8.39 million comes from council tax. This means that almost half of that income – 42.8% – is, initially, unpaid.
Court Action and Liability Orders
To combat this shortfall, the council can take out Liability Orders in a Magistrates’ Court – legal action that enables the council to take debt recovery actions such as reducing money from benefit payments. The number of Liability Orders has also increased sharply. The council issued 4,588 orders in 2021/22, rising to 5,368 in 2024/25, a 17% increase.
The GMB union conducted a similar survey across the Southeast of England and found that a staggering 146,000 people were taken to court for Council Tax arrears last year. The union’s National Secretary, Rachel Harrison, described the figures as “horrifying.” She said they show that “our council tax system is completely broken.”
Court action to obtain Liability Orders costs the council money. HBC paid a total of £458,800 in 2021/22, rising to £536,800 in 2024/25, an increase over that period of £78,000.
The problem for the council seems to be that enforcement action isn’t working, with the amount of successfully recovered arrears falling sharply. The council collected £1.74 million in 2021/22, but only £1.26 million in 2024/25, a 27.6% decrease. This decline suggests that while more households are falling behind, fewer are able to pay off their debts, thus lowering the council’s tax base. Furthermore, the additional costs of collecting this tax reduce the amount HBC gains from doing so. As Rachel Harrison says, “forcing cash-strapped councils to pursue people through the courts can’t be the right way to do business”.
A brief statement from Hastings Borough Council said, “We are aware of the increasing cost of living, making it more difficult for households to cover their costs. We encourage anyone who is struggling to pay their council tax bills to contact us as soon as possible so we can discuss alternative options with them.”
In fact, the council is sending increasing numbers of arrears cases to enforcement agents – bailiffs – who are empowered to seize people’s possessions to pay debts. In 2021/22, 3,346 cases were referred to agents, rising to 3,513 in 2025/26, an increase of 5%. The total amount of debt associated with these enforcement cases remains consistently high – between £3million and £4million from 2022/23 to 2025/26. But while the council is reliant on enforcement agents to recover large sums of money, around half of it is not being collected. Once the costs of enforcement orders and agents’ fees are considered, the council is unlikely to be recovering much of its losses. The HBC statement said there was a council tax reduction scheme for eligible households, and people contacting them could also get details of any other benefits or discounts they might be entitled to. “We can also refer residents for debt advice,” they said, but did not offer any comment on the increasing number of people they were taking to court or handing over to the bailiffs to deal with.
Growing Financial Challenge
The figures paint a picture of a borough where more households are struggling to keep up with council tax payments, indicating how the cost of living may be putting debt pressures on many households in the town. With arrears rising faster than the council can recover them, Hastings faces a mounting challenge to collect its expected tax base. Its inability to do so will likely limit funding for services.
The GMB union said that the Council Tax banding system was ‘woefully out of date’ and that funding and reform was urgently needed from the government along with changes to business rates so authorities keep more of the revenue they raise. Hastings’ MP Helena Dollimore told HIP that the Government was acting, and vulnerable people will be given more support and double the length of time to settle outstanding council tax bills, and that councils will be required to work with them on sustainable repayment plans.
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