Over 20,000 households across Nottingham have council tax debt as they struggle with “difficult” economic conditions.
Figures show more than 24,000 households currently have significant council tax arrears.
As of 2025/26, Nottingham City Council had obtained a total of 24,437 liability orders, which are payment demands from the magistrates’ court for council tax debt.
Liability orders stay active until the debt has been paid off.
Stuart Fair, corporate director of finance and resources, said: “This suggests that around 24,000 accounts were experiencing significant council tax arrears requiring further recovery action.
“The council works to support residents experiencing financial difficulties through payment arrangements, debt advice and access to council tax support and other discounts where eligible.”
According to Nottingham’s figures, the amount of council tax remaining unpaid reduced from £17.243 million in 2024/25 to £17.214 million in 2025/26.
However, the authority says this was achieved despite it billing £12.6 million more in council tax last year, resulting in an improved collection rate of 91.25 per cent, up from 90.63 per cent.
As of the end of March 2026, the entire cumulative non-collection balance attributable to the council’s share of council tax arrears is £53.761 million.
If the police and crime commissioner and Nottinghamshire Fire and Rescue Service precepts are included, the overall debt rises to £63.248 million.
However, the authority applies what is known as a bad debt provision, which means it doesn’t expect to recover it and writes it off as a potential loss.
Including this amount, overall arrears stand at £21.219 million.
Last year, the community and tenants’ union Acorn Nottingham launched a campaign calling on the council to stop using bailiffs to collect unpaid tax.
“Every year Nottingham City Council refers thousands of cases of unpaid council tax to bailiffs, causing people to feel harassed and often pushing people further into debt,” it said.
“We believe that during a cost-of-living crisis, our councils should be supporting people rather than sending bailiffs round.”
In a meeting to discuss the council’s finances on 31 July, Mr Fair said: “There is certainly a correlation with the economic position, which for many residents in the city is not improving, and the macro-economic situation.
“As a consequence, we are experiencing difficulties in the recovery of council tax in the same way that the other local authorities are facing.
“We apply a very consistent process of recovery, a very fair, proportionate one. Officers do their very, very best to ensure those that are in difficulty are given all the help they can to meet their council tax obligations.
“We do see swings from time to time, but regrettably, there is a strong correlation with deprivation and the council is still in one of the most deprived council coterminous areas in England.”
Mr Fair also said the council was investing in its customer services department, including more staff, to assist those who may be struggling financially.
By Joe Locker, Local Democracy Reporter