Local Government Finance Bill Debate

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Baroness Meacher

Main Page: Baroness Meacher (Crossbench - Life peer)
Tuesday 16th October 2012

(11 years, 7 months ago)

Lords Chamber
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Moved by
109ZA: After Clause 14, insert the following new Clause—
“Enforcement of council tax defaulters’ income and expenditure
(1) Councils shall take reasonable steps to obtain from all council tax defaulters a statement showing income, expenditure and debts before—
(a) applying to the magistrates court for a liability order;(b) issuing a distress warrant to the bailiffs;(c) deducting sums of arrears from jobseekers allowance or income support, universal credit or other means tested benefits;(d) commencing bankruptcy proceedings;(e) applying for a charging order;(f) commencing committal proceedings.(2) Regulations will govern the procedures to be followed by local authorities when undertaking a means enquiry and obtaining the information required in subsection (1).”
Baroness Meacher Portrait Baroness Meacher
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I shall speak also to Amendment 109ZB. I shall be very brief. Amendment 109ZA would require councils to take reasonable steps to obtain from all council tax defaulters a statement showing income, expenditure and debts before taking action to recoup the council tax debt. Amendment 109ZB would provide for local authorities to have in their contracts with bailiff companies dealing with the enforcement of council tax a provision for the bailiff company to return the liability order or warrant in specified circumstances. These circumstances are glaringly obvious examples of when such a return should be made. Where there is an error in the decision to issue the liability order or warrant in the first place, surely the warrant should be returned. If the liability order or warrant was imposed before the relevant facts of the case were known, how could such a thing happen and how could it be left like that? The circumstances also include other cases where absolutely obviously it would be unjust or pointless to go ahead with processing the liability order.

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Baroness Hanham Portrait Baroness Hanham
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My Lords, I thank the noble Baroness for moving this amendment. Again, we had some discussion about it in Committee. I have some sympathy about the way in which these enforcements are carried out and the fact that, as the noble Baroness said, sometimes they may simply not be known about.

Again, this is a matter for local authorities. They have to recognise that they have to treat this issue sympathetically, pragmatically and sensibly. I know that it is felt that they do not always do that. I do not think that it is a government direction to do that but—I notice the expression on the noble Baroness’s face—I do think that we can do something in terms of guidance on how they go about this. I will combine, if I may, the two points about guidance because the noble Lord, Lord Beecham, raised the question of the MoJ consultations. We know that those have been concluded, and we also know that there has not yet been a result from them because we have been pressing to see whether we could get anything for today. The MoJ is looking at the question of bailiffs very widely, and we need to look at it from the point of view of enforcement of council tax issues.

I would like to suggest to the noble Baroness that we issue guidance from the DCLG, and that she and her advisers have an opportunity to talk to us about how that guidance should be set up and what should be included. I do not guarantee that we will take it all on board but I think that there is much experience around there that would be helpful. Once the MoJ comes to a conclusion and gets its guidance sorted out, we can pull these together so that there is a comprehensive document. Given that I understand the noble Baroness’s concerns and that we will respond in this way, I hope that she will be willing to withdraw her amendment.

Baroness Meacher Portrait Baroness Meacher
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I thank the Minister very much for that understanding and good response. I very much welcome the fact that the consultation on the regulation of bailiffs has been concluded. I was arguing for that 20 years ago. People always say that it takes 10 years—or is it 20 years?—for a good idea to come to fruition. I am pleased that the department will issue guidance and would welcome the opportunity to talk about it. With those assurances, I am happy to withdraw the amendment.

Amendment 109ZA withdrawn.