A leading charity is warning of a council taxi debt “explosion” in 2021, fearing the coronavirus pandemic will exacerbate arrears.
Citizens Advice Scotland said council tax is the debt issue it deals with most frequently.
In 2019/20, 2,257 people sought help from the Citizens Advice network with a complex debt issue involving council tax, owing a cumulative £6.8 million in arrears.
And the charity believes with payment protection schemes and furlough coming to an end in April that number will only rise.
Financial health spokesman for Citizens Advice Scotland, Myles Fitt, said: “Scotland is potentially facing an explosion of council tax debt in 2021.
“The figures before the pandemic are bad enough, but the real fear is that Covid is going to make matters much worse.”
On average, the debt owed was over £3,000 – which is around three times the country’s average council tax bill.
Throughout the pandemic, many people have been forced into situations of reduced income and the charity is now encouraging those in need to make use of the Scottish Government’s Council Tax Reduction scheme, which can help reduce future payments.
Mr Fitt added: “Action is required to stop council tax debt – already the number one debt issue the Citizens Advice network sees – becoming an even bigger problem over the next year.
“Citizens Advice Scotland would like to see those who have fallen into council tax debt solely because of an economic consequence of Covid be given some sort of help.
“This could be through the Scottish Government undertaking to meet the costs of writing-off such debt, the establishment of a Council Tax Hardship Fund, or through the long-term continuation of supportive forbearance by local authorities.”
