Council writes off 'irrecoverable' business rate debts worth more than £134,000

The nine debts, totalling £134,869.66, have been deemed “irrecoverable” and the council’s cabinet agreed to the write-off, as well as five cases of council tax arrears, worth £11,571.46, at its meeting on Thursday.

A report on the collection of business rates between April and June this year revealed that £37.6m was due to be collected for 2023/24 – and 25.7 per cent had been received so far.

This is more than the 24 per cent collected by the end of June last year.

There has also been a slight increase in the percentage of council tax collected by the end of June, up from 27.8 in 2022 to 28 per cent this year.

Council tax due for the current year totals £63.1m.

Councillor Jacquie Prestwood, the council’s resources and transformation portfolio leader, said: “It’s pleasing to see figures are improving compared to the previous year. After difficulties with the Covid years and the current cost of living which have impacted on many of our residents, it’s pleasing we’re still able to improve the figures we collect.

But she added: “It’s appreciated the proposal to write off debts is a difficult one.”

A report to the cabinet meeting said: “Whilst our collection rates are traditionally good, regrettably not all of the monies owed to the council can be collected.

“Council tax is collected on behalf of the district council, parish councils and our major preceptors – Staffordshire County Council and Commissioner for Police, Crime, Fire and Rescue. The effect of the collection fund arrangements means that Cannock Chase Council retains around 12.4 per cent of the council tax collected.

“In accordance with the council’s approved policies, all reasonable and lawful attempts are made to recover all amounts due. In the first instance this involves the issue of bills, reminders, and final notices, followed by summonses in the magistrates court where the warning notices are not effective.

“At all stages of this process, debtors are encouraged to engage in voluntary arrangements to repay their arrears, to prevent the need for formal action. Where necessary and when liability orders are granted by magistrates, the council uses its powers to make deductions from earnings and benefits of debtors, where it can, and instructs enforcement agents where such deductions are not possible or appropriate.”