Tax dodgers who cheated Oxfordshire councils out of £6m in unpaid council tax last year have been warned they face court, the bailiffs and bankruptcy.

New Government figures reveal £253.6m was paid in council tax in the past financial year in Oxfordshire out of a total £259.7m tax bill.

Non-payment of tax has left the county with a £6,035,000 shortfall and now councillors are pledging to pursue tax dodgers through the courts.

They say it is unfair that the honest taxpayer is picking up the bill.

Oxford City Council reported £2.5m in unpaid tax followed by South Oxfordshire with £1.3m and Cherwell losing more than £1m.

Just under £1m went uncollected in West Oxfordshire and £266,000 in Vale of White Horse district.

Charles Shouler, county council cabinet member for finance, said: "It's regrettable the district councils have an amount they haven't collected.

"Although it's a small percentage, those who don't pay are being subsidised by those who do, which is unfair and unreasonable.

"If everybody paid the money there would undoubtedly be a reduction in the council's future levies."

The percentage of council tax collected in Oxfordshire fell from 98 per cent in 2003/04 to 97.7 per cent in 2004/05.

Around 80 per cent is spent by Oxfordshire County Council while the rest is split between the district councils, town and district councils, and the emergency services.

Paul Warters, revenue and benefits manager, said: "An improvement plan was drawn up before the start of the new council tax year. By sticking to this plan we should see a significant improvement in tax collection.

"A new bailiff firm will be appointed in July for the collection of council tax and business rates debts, and we will be taking our biggest debtors to the County Court to make them bankrupt."

A spokesman for Oxford City Council, said: "Officers have worked hard to decrease the overall debt that is owed to the council and they reduced it by £6m last year. We hope to further improve on that figure this year."

Paul Howden, revenues and benefits manager at South Oxfordshire District Council, said: "It is not fair for the ordinary law-abiding tax payer. We have powers to pursue it through the courts, use bailiffs, seek bankruptcy and put charges on property."

A spokesman for West Oxfordshire District Council said: "This will always happen because a lot of money is carried on from the previous financial year. The money has not been lost. It will be collected and anything we write off is peanuts."

The Vale of White Horse District Council recorded 99.5 per cent collection rates and its strategic director and chief finance officer pledged to collect the outstanding council tax payments before the end of the year.

A spokesman for Cherwell District Council said: "We've collected 98.13 per cent and we will pursue non-payers, which will ultimately end with court action."