Council tax and insolvency in 2026: where debt bites hardest
Two official datasets show where money is tightest: councils are collecting less council tax than a year ago, and the chance of ending up in formal insolvency depends heavily on where you live.
Applies to: England & Wales
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Council tax: collection is falling everywhere
English councils collected 95.6% of the council tax due in 2025–26, down from 95.9% the year before. Unpaid council tax built up over the years reached £7.4 billion by 31 March 2026. The fall happened in every type of council.
| Type of council | 2025–26 collected | 2024–25 collected | Change |
|---|---|---|---|
| All of England | 95.6% | 95.9% | -0.3 points |
| Shire districts | 97.0% | 97.2% | -0.2 points |
| Unitary authorities | 95.8% | 96.0% | -0.2 points |
| Outer London | 95.0% | 95.3% | -0.3 points |
| All London boroughs | 94.3% | 94.8% | -0.5 points |
| Metropolitan districts | 93.3% | 93.6% | -0.3 points |
| Inner London | 93.0% | 93.8% | -0.8 points |
Inner London and the big metropolitan districts collect the lowest share, at about 93%. Every percentage point not collected is debt that councils can pursue with liability orders, deductions from wages and benefits, and enforcement agents. Council tax arrears explained.
Personal insolvency: a three-to-one gap between places
In 2025, 25.3 in every 10,000 adults in England and Wales entered a formal insolvency — a Debt Relief Order, an IVA or bankruptcy — up from 24.1 in 2024. The North East had the highest regional rate, at 33.8, and London the lowest, at 16.2. Between local authorities the gap is far wider.
Highest rates, 2025
| Local authority | Per 10,000 adults | Insolvencies |
|---|---|---|
| Halton | 63.0 | 654 |
| Kingston upon Hull | 55.3 | 1,177 |
| Blackpool | 50.8 | 586 |
| Hartlepool | 44.9 | 346 |
| Nuneaton and Bedworth | 44.4 | 490 |
| North Tyneside | 44.2 | 763 |
| Gosport | 44.1 | 293 |
| Calderdale | 43.7 | 724 |
| South Tyneside | 43.3 | 524 |
| North East Lincolnshire | 43.2 | 546 |
Lowest rates, 2025
| Local authority | Per 10,000 adults | Insolvencies |
|---|---|---|
| Richmond upon Thames | 9.4 | 143 |
| Camden | 10.2 | 185 |
| Westminster | 10.5 | 189 |
| Wandsworth | 10.6 | 296 |
| Harrow | 10.8 | 228 |
| Kensington and Chelsea | 11.5 | 140 |
| Cambridge | 12.2 | 152 |
| Kingston upon Thames | 12.6 | 171 |
| Ceredigion | 12.9 | 79 |
| Wokingham | 13.1 | 187 |
Adults in Halton were almost seven times as likely to enter insolvency as adults in Richmond upon Thames. Debt Relief Orders, which are free and designed for people with low incomes and few assets, make up a large share of insolvencies in the places at the top of the table. Debt Relief Orders explained.
About these figures
Council tax figures are MHCLG’s official collection statistics for England, published June 2026 and revised July 2026. Insolvency rates are the Insolvency Service’s official figures for 2025, published March 2026, and count people entering a formal insolvency, per 10,000 adults. We have not adjusted them. A full council-by-council league table will follow when the authority tables are added.
Using this research
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Common questions
How much council tax is unpaid in England?
£7.4 billion of council tax arrears were outstanding at 31 March 2026, according to MHCLG's official collection statistics.
Where is personal insolvency highest?
In 2025 the highest rate was in Halton, at 63.0 insolvencies per 10,000 adults, followed by Kingston upon Hull and Blackpool. The North East had the highest regional rate.
Where is personal insolvency lowest?
Richmond upon Thames had the lowest rate in 2025, at 9.4 per 10,000 adults, followed by Camden and Westminster. London had the lowest regional rate.