Walsall Council fails to collect £2.3m in business rates
More than £2 million of business rates went uncollected in Walsall during the last 12 months, it has emerged.
Although £66m was collected by Walsall Council over the last financial year there was still over £2.3m in cash left outstanding.
Council chiefs have vowed to pursue the missing money, while continuing to support companies. Labour group leader councillor Tim Oliver said if the council fails to collect the shortfall residents will have to bear the cost.
"The problem is that any shortfall in the future will now be shared between the Government and the council. On last year's figures, we estimated that will cost an additional £800,000," he claimed.
It comes after it emerged in the last financial year the authority successfully prosecuted 52 people who wrongly claimed benefits totalling £500,000.
Darlaston South councillor, Doug James said: "We have to ensure fraud is rooted out but we also have to ensure companies pay for the services they receive. Otherwise, residents and companies who do pay will have to make up the difference. Despite the best efforts of staff, the council has failed to collect nearly £2.5 million during 2012-13.
"Walsall Council needs a growth plan for local business but, we must ensure businesses are paying their fair share for the services they receive"
However, finance boss councillor Chris Towe said: "This council is committed to collecting business rates and has historically collected up to 99 per cent. Some companies do however close down, going into insolvency or bankruptcy. The amount outstanding for 2012-13 will be pursued using every recovery option that the council has available – this is not a closed chapter.
"But it is also important to balance this with the efforts that the council makes to support and work with our businesses, some of which are struggling in difficult economic times. We work in partnership to come up with solutions that bring in the outstanding amount while trying to help businesses remain viable.
"Finally, the £800,000 figure quoted needs to reflect the fact that the council shares the risk of uncollected business rates on a 50/50 basis with central government so this figure would be halved."
