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Local councils appear to be taking a tough stance over council tax debt, and are petitioning for bankrupcies over debts of as little as £1200.

It is thought that authorities are getting tough over arrears in order to meet govenment-set performance targets.

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Former world champion Scott Harrison has been forced into bankruptcy following the failure to clear an £83,000 tax debt.

The boxer had hoped to use the proceeds of a £350,000 property sale to meet the demand, although it is thought that had this gone through only £70,000 would have been available, prompting the tax man to push forward with bankruptcy proceedings.

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HM Revenue and Customs has proposed that it be given the power to seize unpaid taxes directly from the non-payer’s bank account, without recourse to the court order which is currently necessary.

Around 200,000 debtors are pursued through the courts each year, an exercise which is both costly and bureaucratic, and can be used by non-payers to significantly delay paying their taxes.

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