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Land and Property Services rates non-payment legal action rises by 5% | |
(about 2 hours later) | |
The number of court actions started for non-payment of rates is on the rise, according to figures provided to the BBC. | The number of court actions started for non-payment of rates is on the rise, according to figures provided to the BBC. |
Legal action was launched almost 49,000 times last year; a rise of 5%. | Legal action was launched almost 49,000 times last year; a rise of 5%. |
More than £1bn is collected in rates annually by Land and Property Services (LPS) and court actions have helped it to reduce arrears to £162m. | More than £1bn is collected in rates annually by Land and Property Services (LPS) and court actions have helped it to reduce arrears to £162m. |
The Housing Rights Service, which helps those in payment difficulties, said it was "not surprised" by the figures. | The Housing Rights Service, which helps those in payment difficulties, said it was "not surprised" by the figures. |
"We would welcome a review of recovery practice to afford ratepayers more time to repay arrears and avoid costly court action," said one of its managers, Ursula Toner. | "We would welcome a review of recovery practice to afford ratepayers more time to repay arrears and avoid costly court action," said one of its managers, Ursula Toner. |
LPS said that in about 50% of cases, notification of court action was enough to result in either payment of arrears in full or by another arrangement. | LPS said that in about 50% of cases, notification of court action was enough to result in either payment of arrears in full or by another arrangement. |
However, the rest ended up in court. | However, the rest ended up in court. |
The figures relate to the 2013/14 financial year, which saw rates arrears by households and business reduce by £6m on the previous 12 months. | The figures relate to the 2013/14 financial year, which saw rates arrears by households and business reduce by £6m on the previous 12 months. |
The amount of debt written off - money owed that could not be recovered - increased by £2m to £31m. | The amount of debt written off - money owed that could not be recovered - increased by £2m to £31m. |
The rise is said to reflect companies going into liquidation or administration, in what remains a challenging economic climate for many businesses. | The rise is said to reflect companies going into liquidation or administration, in what remains a challenging economic climate for many businesses. |
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