Councils suffer due to residents' tax fraud

Date: 15th September 2009

Fraudsters are costing UK local authorities dear due to scams related to council tax.

According to the Audit Commission, many people are falsely claiming that they live alone, in order to gain access to a 25 per cent discount on the property tax.

These tax dodges are estimated by the organisation to cost councils around £2 million a week.

Meanwhile around 50,000 UK properties are thought to be occupied unlawfully through housing tenancy fraud.

The Audit Commission's report argued that, if these residents were removed from their homes, families and individuals forced into temporary accommodation could be rehoused.

Steve Bundred, chief executive of the organisation, said that councils should crack down on the con artists.

"It has never been more important that councils fight fraud," he commented.

"Every pound lost to cheats is a pound that can't be used for people in real need."

Also responding to the report, Margaret Eaton, chairwoman of the Local Government Association, said: "One of the reasons the commission has been able to highlight some types of fraud as an issue is because of the hard work of many local authorities which have tracked down cheats and taken action against them."