Minutes:
The Benefits Team Manager presented the report for Members’ information and for approval to write off those debts listed in the appendices.
Every effort was made to ensure that all amounts due to the council were rigorously pursued. At the end of each financial year a provision was set aside for those debts that were proving difficult to recover. Where debts were found to be irrecoverable it was the role of the Policy and Resources Committee to consider them for write off.
Detailed at Appendix A were the National Non Domestic Rates Debts which were recommended for write off for the reasons detailed.
The National Non Domestic Rate write offs were split into two totals the first accounts totalling £114,987.82 relates, in the main, to businesses that had gone into liquidation or individual bankruptcy. The second totalling £222,781.92 related to one account that had been incurred due to action taken by the Valuation Officer. The company went into liquidation in December 2014 but a recent backdated increase in the rateable value of the property created this additional debt which was not due at the time the company went into liquidation. This debt was an unexpected charge raised due to the actions of the Valuation Office and was not money that was expected to be paid.
Detailed at Appendix B were the Housing Benefit Overpayments which were recommended for write off for the reasons detailed.
Detailed at Appendix C was a Sundry Debtor Account which was recommended for write off for the reasons detailed.
The total of the write offs set out in the report and its appendices did not in any way affect the revenue balances for the current year as provision for the write off of these debts had been made in previous years. Members were reminded that the writing off of these debts does not preclude the writing back should any further details come to light that may affect the account.
The Committee asked a number of questions around specific cases, and also questioned whether a debt had ever been written back on, and were debts still pursued after having been written off. The Revenues Team Manager responded that a debt had been written back on that day, and that debts were still pursued after having been written off and that action was taken wherever possible. Bankruptcy was not enforced unless necessary.
Some of the debts had resulted from bankruptcies and this did not preclude individuals from immediately starting a new business. It was suggested that as some of the businesses incurring the above debts were public houses, there could be a question included on the licence application form asking whether any outstanding monies were owed to the Council.
RESOLVED that:
a) the write off arrears of National Non Domestic rates to the value of £337,769.74 be agreed;
b) the write off arrears of Housing Benefit Overpayments to the value of £4,157.06 be agreed; and
c) the write off arrears of Sundry Debtor Accounts to the value of £35,192.99 be agreed.