A report was received from the Director of Finance.  Cabinet considered the write-off for individual or business debts of over £3,000.  The council had sought to recover all the debt it was owed by residents and businesses, using all recovery methods.

The Mayor explained that any detailed information about individuals was in the Part B appendices.  A revised Part B Appendix 2 had been circulated at the meeting.  The Part A report dealt with the principle of the write-offs.

Councillor Watkin commented that the write-offs of accounts which amounted to 0.16% of the total invoiced gave officers the opportunity to focus on areas where debts could be recovered.

The Shared Director of Finance explained that it was not just councils but every commercial business, that prepared for a small percentage of invoices that would not be paid.  On the balance sheet it would still show that the money was owed but the reality was that it would be unlikely to be paid.  There was also a bad debt provision which set aside money to cover the bad debts.  Attempts had been made to recover the money through bailiffs and a tracing arrangement which the council had with Luton Council.  However, a view had been taken that these debts were not recoverable.

The Mayor thanked the recovery team that during a recession and difficult times had still collected such a high percentage.  She also said that the council wanted to support companies and if they were struggling they should contact the council.  There were a number of companies which had made their books available for examination and the council had worked with them to establish a payment plan which was achievable.  If companies would not work with the council then they would be taken to Court, but that was in a very few cases.

The Mayor suggested that a review could be carried out on those who were not paying their debts to see if there were any underlying issues for example with communication.

RESOLVED

That Cabinet approves writing-off 21 accounts for National Non-Domestic Rates (NNDR) debts, covering the period 2007 through to 2015, amounting to £97,211.90 listed in the table at appendix 1.  This represents 0.16% of the £510,000,000 invoiced over the same period (see Appendix 1.)