OVER £25m of council tax and business rates went uncollected by Merseyside councils in the last year.

New figures reveal Liverpool was the fourth worst authority in the North West for non-collection, witrh more than £7.3m left outstanding in 2010/11.

Sefton was the second worst offending council on Merseyside, failing to collect £5.4m, while Knowsley had the lowest non-collection rate of all six authorities, failing to bring in £1.4m.

The worst performing authority in the North West for failure to collect council tax and non-domestic rates was Manchester, waiving more than £18.4m in the previous financial year.

Paul McCarthy, the regional head of the GMB union, said it was a “scandal” that while services were being cut, councils were forfeiting so much cash.

But city leaders said the amount they were failing to collect was decreasing year on year. In the last year, Liverpool council exceeded its expected collection rate from council tax by around £1.5m.

Mr McCarthy said: “It is a scandal and a disgrace, at a time when vital services for our elderly and our children in our local communities are being slashed due to government cuts in funding that more than £1bn nationally is going uncollected in council tax and business rates.