The majority of Scottish councils failed to improve their rent arrears

Public finance watchdog the Accounts Commission said the money was owed to 30 out of the 32 local authorities in Scotland by the end of 2002/03.

The shortfall represents 7.4% of the total due, with half of councils failing to improve rent collections and to hit previously set targets.

Fifteen councils cut their level of arrears and four met the targets set by the commission in 2000.

The figures did not include arrears in Glasgow and Scottish Borders which were excluded from the analysis due to their housing stock transfers.

Off target

The commission's collection targets expected rent arrears in semi-urban and rural areas to be below 3% of net rent with city and urban areas expected to be under 7%.

The first target was met by Orkney (2.6%) and Perth & Kinross (2.5%) councils, while North and South Lanarkshire councils (5.2% and 4.5% respectively) achieved their own targets.

West Dunbartonshire continued to report the highest level of arrears (18.2%), followed by North Ayrshire (14.9%), Edinburgh (13.1%) and Inverclyde (12.7%).

The Convention of Scottish Local Authorities (Cosla) conceded rent collection levels were "not ideal" but insisted councils treat non-payment as a serious matter.

Serious matter

Cosla housing spokesman Douglas Reid said: "Not only is it in councils' interest to collect rent, it is in the tenant's interest to pay it.

"Councils treat non-payment as a serious matter and will endeavour to use all means at their disposal to collect money owing.

"I have to admit levels of rent collection are not ideal but there are underlying factors which have to be taken account of.

"The majority of people in arrears do not choose to be in arrears but are in multiple financial difficulties with limited choices which, in turn, constrains the action councils can take."