TOWN hall bosses in Burnley failed to collect more than £700,000 from council taxpayers last year.

New council figures reveal that although officers retrieved 96.41 per cent of bills from residents, many still slipped through the net.

And Burnley Council has also admitted that the economic downturn may mean more tax cash goes astray.

The statistics, compiled in a report for the better services scrutiny committee, show that the authority’s council tax arrears for 2008 stood at £727,000, up from £639,000 in 2007.

Meanwhile, bosses say they expect the black hole to be £880,000 by the end of April - reflecting the tough economic climate as more residents struggle with bills.

However, despite the arrears, Coun Peter Doyle, Conservative group leader and chairman of the better services scrutiny committee, said the Liberal Democrat-ruled council was not faring too badly.

He said: “To be fair to the council, it has made great strides to improve the collection rates and when you consider the deprivation rates in Burnley, it is not too bad at all.

“We have got people who cannot be traced but it’s also worth bearing in mind that we often trace people in later years and get the money back.

“I don’t think the arrears are a major problem because we are doing well, all things considered.”

It was revealed last year that more than 4,000 homes in Burnley are lying empty.

And it is understood that many, owned by rogue landlords, are failing to contribute to Burnley’s council tax pot.

Coun Darren Reynolds, who also sits on the better services scrutiny committee, said members would be asking officers who was avoiding paying council tax.

But he added: “I think it’s the general economic climate that people are keeping up with their payments.”

The council report also says that bankruptcy action against 91 non-payers has clawed back £171,000 for the town hall and another £190,000 in charging orders issued against 48 homes.

The report adds: “It is important to note though that the current downturn in the housing market may mean that both bankruptcy and charging orders become less attractive as recovery methods in 2009/10.”