Council tax crackdown by cash-strapped authority

Peterborough City Council has announced a review of its single person council tax discount scheme

A crackdown on council tax fraud has been launched by a cash-strapped local authority.

Peterborough City Council has asked all people claiming its single person discount to confirm they are still sole occupants.

It said it would help ensure there were no cases where the 25% reduction was claimed incorrectly – "knowingly or otherwise".

The council has asked recipients to reply by text, online or by post.

Almost 30,000 households in Peterborough currently claim the single person's discount.

Other local authorities have taken similar measures.

Earlier this month, Hartlepool Borough Council said hundreds of households were found to be erroneously claiming the discount.

Peterborough City Council has given people 14 days to reply, and said those found to have knowingly defrauded the system could face prosecution.

It expects the review to last for about 10 weeks.

The authority said it might be able to backdate cancelled discounts and recover funds.

'Significant' financial challenge

The council faces a difficult financial challenge. Its quarterly budget report projects a shortfall of more than £11m in its net revenue this year.

"The scale of the challenge is significant," it said in a report.

"To bring this position to a break-even position would require a reduction in overspend of roughly £1.4m each month."

This "completely wipes out the general fund", which is essentially the council’s savings account.

The authority estimates a shortfall of up to £24m next year, with similar figures in the following two financial years in the worst-case scenario.

The best-case scenario would see shortfalls of more than £10m a year.