Portsmouth residents owe £37.9m in council tax as new repayment rules approach
It comes after the Government plans to ease council tax enforcement rules
Portsmouth residents owe nearly £38m in council tax debt, with government reforms set to give households longer to address missed payments.
The changes, recently announced by the government, will require councils to provide clearer warnings and give households longer to get back on track with their payments.
As of March 31 this year, the level of council tax debt owed by Portsmouth residents stood at £37.9m, according to Portsmouth City Council.
Under the new rules, due to come into force from April 2027, councils will have to send a reminder and then a final notice before residents lose the option to pay their council tax in instalments.
The final notice must be sent at least 14 days after the reminder and at least 41 days after the first missed payment. Residents will then have a further 21 days before losing the option to pay in instalments.
Currently, councils can send one reminder before demanding payment of the remaining annual balance in full.
A Portsmouth City Council spokesperson said: “We welcome the government’s proposed reforms to council tax enforcement. The changes appear to strike a sensible balance between ensuring councils can collect council tax, which funds vital local services, while providing residents with more time, and additional opportunities to engage before formal recovery action is taken.
“Portsmouth City Council already takes a pragmatic and supportive approach to council tax collection. We actively encourage any resident who is experiencing financial difficulties to contact us as early as possible so that we can discuss their circumstances and identify an affordable and sustainable payment arrangement.
“Even where arrears escalate and a resident becomes liable for the remaining annual balance, we will always establish a special payment arrangement by instalments.
“We promote the range of support available, including Council Tax Support for eligible households, discretionary assistance where appropriate, and also signpost to free, independent debt and money advice services. Seeking advice at an early stage can often help residents address wider financial difficulties and avoid debts escalating.
“We await publication of the government’s detailed regulations and guidance and will consider the full implications once these are available.”
The changes form part of wider government plans to make council tax payments more manageable for households struggling financially.
From April 2027, households will have at least 63 days before losing the option to pay in instalments.
A further change, due to take effect from April 2028, will see council tax bills spread over 12 months by default, rather than the current 10-month schedule, reducing the amount households pay each month.
The government will also work with councils and debt support organisations to develop guidance and an optional template letter to make information about repayment rules clearer and more consistent.
The reforms are intended to give residents more time and support to address arrears before their debts escalate.