News

COUNCIL TAX FIRM 'TO BE DROPPED BY SOUTHWARK'

14 May 2009

The council is due to drop the contractors who collect Council tax next week.

The executive will meet next Tuesday to seal Liberata UK Limited's fate, and draw a line under the council’s thirteen year relationship with the firm from 2011.

Following a fourth year of missing collection targets, the executive member for resources, Tim McNally, launched a stinging attack on the firm: "These latest results raise yet more serious questions about Liberata, whose job it is to collect council tax.

“We have given them every chance to improve their performance, and we are now looking at our options. Work is already underway to improve the processes that underpin collection and I look forward to debating the options officers have to take this service forward."

The latest year’s results have seen Liberata fail to reach a collection target of 93 per cent by 1.3 per cent. Each percentage point of missed collection is estimated to cost £940,000 in lost revenues.

Cllr McNally added: "We are very disappointed about the council tax collection rates - early indicators suggest this will be one of the lowest in London. At a time when - like our residents - we have to tighten our belts, to miss out on our council tax collection target is not acceptable."

The 'News' first revealed that the council was considering a parting of the ways back in January. Options on the table for the council appear to be bringing the arrangements in-house, sharing a provider with another authority or finding another company.

Vijay Chandiramani, a regional director at Liberata said: "Liberata continues to work in partnership with the Southwark Council to achieve the right outcome for its citizens until the end of the contract".

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