TEST Valley’s population owes more than £3m in unpaid council tax amid claims cash-strapped residents are sliding into debt.

National Debtline, the free advice service run by the Money Advice Trust, has said 95 people in the borough contacted it directly last year needing help with their finances.

New official figures have revealed that residents in Test Valley owed £3.086m in unpaid council tax bills at March 31. This figure is the total arrears outstanding, not related to one single year.

The charity says council tax is now the fastest growing type of problem debt. Joanna Elson OBE, chief executive of the Money Advice Trust, said: “We’re seeing more and more people seeking help with council tax arrears but the fact residents here owe £3.1m makes us concerned that many more people in the area are struggling alone.

“We’d like to see authorities do everything they can to help residents who are falling behind to seek the free advice that can turn their lives around.”

A spokesman for Test Valley Borough Council (TVBC) said: “While TVBC is responsible for the billing and collection of all council tax accounts, the income and outstanding debts are shared between Hampshire County Council (73.3%), TVBC (11.2%), Hampshire Police Authority (11.1%) and Hampshire Fire and Rescue (4.4%). The amount attributable to TVBC is in the region of £345,000.

“TVBC procedure for recovering outstanding arrears follows national guidelines. This starts with the issuing of a reminder and can proceed through to Magistrates’ Court action and ultimately recovery action including referral to enforcement agents, attachments of earnings or attachments of benefits if a payment plan cannot be agreed.

“There are occasions when it is not possible to recover some debts, for example where there is an insolvency or bankruptcy. However, wherever possible, the council seeks to recover outstanding council tax. As at June 30, the figure of £3.086m has been reduced by £366,000 – more than 10 per cent in three months, bringing the balance down to £2.72m.”

For debt advice visit www.nationaldebtline.org or call 0808 808 4000.