Business Rates and Council Tax: Arrears
The question
To ask the Secretary of State for Housing, Communities and Local Government, further to Collection rates for Council Tax and non-domestic rates in England, 2025 to 2026, published on 24 June 2026, what analysis he has undertaken into the reasons for the (a) fall in council tax collection rates, (b) fall in business rate collection rates, (c) rise in council tax arrears and (d) rise in business rate arrears.
Answered by Alison McGovern
Collection rates for both council tax and business rates remain high. Collection rates in England were at 95.6% for council tax and 96.8% for business rates in the 2025-2026 financial year. Small fluctuations in collection rates for council tax and business rates are not uncommon and could be affected by many different reasons.
These taxes are important in helping fund local services and local authorities have a range of tools available to recover unpaid taxes. It is ultimately the responsibility of individual local authorities to manage the collection of both business rates and council tax.
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