Council tax non-payers 'forced into bankruptcy'

Date: 8th October 2009

Two reports from the Local Government Ombudsman have highlighted the bankruptcy policies pursued by some UK councils.

Manchester City Council and Newham Council were both criticised for making local residents bankrupt after they fell behind on council tax payments.

Newham was found to have pursued one female resident through the courts even though they knew she was mentally ill.

The nature of the woman's health problems rendered her unable to deal with her finances properly.

Newham has since changed its policy and granted the woman an exemption.

Local Government Ombudsman Tony Redmond said: "I commend the council for its rapid and appropriate action."

Meanwhile, Manchester City Council was found to have lacked a written policy on individual cases for non-payment of council tax.

This meant that officers considering whether or not to pursue bankruptcy proceedings had no council document to refer to when making this decision.

Local Government Ombudsman Jerry White said that this was "maladministration" on the part of the authority.