Research by Stockport’s Labour Group has uncovered figures showing how the Liberal Democrat-led Council will not collect £3.48 million in local business taxes in 2015-16.

Councillor Alex Ganotis, Leader of the Labour Group, said ‘Thursday’s Budget will debate plans to cut services by £18.6 million in Stockport next year so it is vital that the Council is maximising revenue. This isn’t extra tax, it is tax which is due and hasn’t been collected.

‘Stockport is in the bottom 12 Local Authorities nationally for collection rates and in moving to a financial model which assumes 100% retention of Business Rates it is imperative for the Council to put this right.

‘By reaching the English average we could bring in a further £1.68 million which would be split between the Council, the Government and Greater Manchester Fire and Rescue Service. Business Rates is often volatile income, but that’s no excuse for Stockport performing so badly compared to neighbouring Local Authorities.’

Stockport Council’s poor performance in collecting tax has led to significant outstanding debts building up. As at 31st January 2016, £7.59 million was due in unpaid business rates, and £10.21 million of Council Tax. This means a total of £17.8 million hasn’t been collected.

Councillor Ganotis added ‘Both the level of debt carried over from previous financial years and what is added each year are far too high. It’s unacceptable because residents and businesses paying their Council Tax or Business Rates lose out.

‘The Deputy Leader of the Council says Stockport has ‘strong performance on business rates collection’, but instead of spinning the facts he needs to acknowledge that improved collection rates are going to become increasingly important in the future and take action.

‘The announcement that Stockport will have the power to retain 100% of business rates by 2020 means that we need to get our house in order now as this is a way of mitigating the bleak financial picture facing the Council and mitigate some of the worst impact of the cuts.’

Stockport is one of the worst performing authorities in the North-West, projecting a collection rate of only 96.3% for 2015-16 compared to over 98% in Cheshire East and Cheshire West and Chester.