Cannock Chase Council writes off business rate debts worth more than £150k

The two cases, totalling £158,876.23, were written off by cabinet members at their meeting on Thursday (March 5).

A report to the council meeting said: “The recovery powers available to the council are considerable but not completely infallible. Whilst our collection rates are traditionally good, regrettably not all of the monies owed to the council can be collected.

“Our collection efforts are sometimes frustrated by weaknesses in legislation. Rates are due from the occupiers rather than the owners of property and where the occupier is a company, we can only recover from that company.

“Some proprietors will strip a company of its assets, or dissolve the company before we have had an opportunity to implement our recovery procedures. A new company is then formed in a similar style, to trade from the same premises.

“Central Government has previously undertaken to review the loopholes that exist in rating and company legislation, though no changes have yet been received. Officers continue to actively monitor these issues.”

Cabinet members were also given an update on the authority’s progress in collecting council tax and business rates due for the current year. By December 31, 80.8% of business rates had been collected – an increase compared to the 80.1% collected in the same period last year – while the council tax collection level remained the same, at 81.6%.

The cabinet report said: “Whilst trying to maintain this rate in the coming year, the team will also increase its efforts to recover older years’ arrears owed to the council. 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. In the most severe cases and for debts exceeding £5,000, the council will consider personal bankruptcy action against individuals.”