Council's threat to bad debtors

Householders and businesses will be targeted in the move, which is aimed at people who owe more than £750 in council tax or non-domestic rates.

Members of Wear Valley District Council's Central Resources Committee will decide this week whether to use insolvency as a tool for the effective collection of council tax and non-domestic rates.

The council is not expecting to use the procedure often and has assured people that it would be used as a last resort.

Gary Ridley, director of central resources at the council, said that it would be aimed at people who deliberately avoid paying their taxes rather than those who are struggling to make ends meet.

He said: "We do quite well at collecting council tax and business rates but it is important that we use all available options open to us as an authority.

"It is not something that will be used very often. We do have various options before we go down the insolvency route.

"People who are struggling will be treated sympathetically.

"It is important to identify those chargepayers who can pay but choose not to, and distinguish them from those who are facing genuine hardship.''

Provisions within the Council Tax (Administration and Enforcement) Regulations 1992, enable local authorities to take action to recover debts under the conditions of Insolvency Act 1986.

Appropriate cases may only be considered once the statutory notices have been issued and a liability order obtained through the magistrates court.

Mr Ridley said that Wear Valley District Council has never used the insolvency option before but it is a procedure that more and more authorities are electing to use.

He said: "The majority of this region's councils either already take these proceedings or are indeed about to embark upon them.

"We need to look at it from the point of view of people who do pay their taxes on time to let them know that the council is doing what it can to maximise its tax collections.''