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Fife council tax debts soar by £5 million in four years

Fife Council sign.
Fife Council may need to pay out millions. Image: DC Thomson

The amount of council tax owed by residents in Fife has soared by more than £5 million in four years.

Figures obtained by The Courier show that people living in the kingdom owe £12.8m, up from £7.4m in 2018.

The number of households falling into arrears has also risen, from 15,574 in 2018 to 18,663 this year.

Meanwhile, in the last four years, the local authority has been forced to write off more than £8m that it was owed by residents in council tax.

A total of £2.65m was written off in 2021/22 – the highest amount in the four-year period.

Fife residents faced a 3% rise in council tax this year, agreed by the previous SNP/Labour administration.

Ian Robertson, chairman of Glenrothes Area Residents’ Federation, says the figures are just one example of the hardship being faced by households across the region.

He said: “It’s the worst situation I’ve experienced in over 30 years.

Ian Robertson, chairman of Glenrothes Area Residents' Association.
Ian Robertson, chairman of Glenrothes Area Residents’ Association. Image: Neil Henderson/DC Thomson.

“The level of poverty is so bad now that it’s no longer the vulnerable, the elderly or those without a job that are experiencing poverty – ever-increasing numbers of people in work are still struggling to make ends meet.

“Growing numbers from every age group are being affected.

“It’s tragic the increasing amounts of people seeking help with the very basic of requirements, like having enough food to eat or heating a child’s bedroom.

Things ‘will get even worse for many’

“The situation has become so bad that we are about to launch a soup kitchen for anyone struggling.

“Sadly, despite the efforts, it’s an already dire situation that is going to get even worse for many.”

Mr Robertson says the council tax debt figures are not surprising.

He added: “Councils are hit hard financially but if someone can’t even put enough food on the table, how can they be expected to pay council tax or their rent?”

Councillor David Ross, leader of Fife Council
Councillor David Ross, leader of Fife Council. Image: Fife Council.

Council leader David Ross admits his Labour administration has no answers when it comes to the cost of living crisis.

But he says support is available for anyone struggling to pay bills.

He said: “Times are tough and the cost of living crisis is continuing to have an impact on our communities.

“Please reach out to us if you are having difficulty paying. We can help with options and payment plans.

We can to try to make sure that wherever folk turn for support or advice, they’ll get the help they need”

Council leader David Ross

“There’s also lots of support and help available on our community website which brings together info from our community planning partners.

“As a council we can’t solve all the problems that the cost of living crisis brings.

“By working more closely than ever with our community partners – NHS Fife, Fife Health and Social Care, Citizens Advice and Rights Fife, Fife Voluntary Action and a range of community organisations – we can to try to make sure that wherever folk turn for support or advice, they’ll get the help they need.”

Fife Council explains why it writes off debts

Les Robertson, head of revenues and commercial services at the local authority, has explained why Fife Council writes off some council tax debts.

He said: “There are always circumstance where Fife Council has to write off debt due to customers being unable to meet their payments, for a variety of reasons.

“These write offs are closely monitored and only where there is no prospect of successful collections are monies deemed irrecoverable.

Fife House, the council's HQ in Glenrothes.
Fife House, the council’s HQ in Glenrothes. Image: Steve Brown/DC Thomson.

“We do plan for a certain amount of debt to be written off. This is reviewed annually in line with predicted collection rates.

“This ensures that we’re able to cover losses from irrecoverable debt which will, in the future, will be classed as ‘bad debt’.”

Debts have nearly doubled in Dundee to £6m in the last four years, and are up by just over £1m in Angus.

The total owed in Perth and Kinross stands at £33.3m, but no data is available from previous years.