Issue - meetings

A report seeking approval to write off debts over the value of £5,000 where there is little or no prospect of recovering them.

Cabinet

1)    NOTED the action taken by the Council to recover outstanding debts;

2)    AUTHORISED the Chief Finance Officer to write off of the debts shown in Appendices 1-3 of the report.

2)

Councillor Sarah Cox, Portfolio Holder for Corporate Finance, Property and Resources introduced the report, the purpose of which was to seek approval to write off debts over the value of £5,000 where there is little or no prospect of recovering them.

Councillor Cox highlighted

·       The increased focus on debt recovery had a positive impact on the Council’s bad debt provision.

·       There was more work to be done, particularly in sundry debts and rent recovery.

·       Concerning council tax collection, the Council was within the top quartile nationally and was a ‘top performer’ in Leicestershire in 2023/24, increasing its collection rate by 0.17% over the previous year.

·       Business rates performance also compared well to other Leicestershire authorities, which was significant in view of the cost of living crisis.

·       Early intervention and support for rent arrears prevented the accruement of large debts.

·       All debts proposed for write off in the report had followed the steps set out within the Council's Corporate Debt Recovery Policy.

Councillor Cox moved the recommendations and the Leader seconded the motion, noting that if Members wished to comment on the exempt appendices (Appendixes 1, 2 and 3), the meeting would need to enter exempt session.

The Leader highlighted that the Council had an excellent partnership with the Melton and District Money Advice Centre (MADMAC), who provided free money and debt management advice to the public.  MADMAC would address Members at Council on 25 July.

During discussion the following points were noted:

·       Members thanked officers for the report.

·       Members were pleased that the Council had a process in place and its partnership with MADMAC, to help prevent/manage debt.

Cabinet

1)    NOTED the action taken by the Council to recover outstanding debts;

2)    AUTHORISED the Chief Finance Officer to write off of the debts shown in Appendices 1-3 of the report.

(Key Decision)

Reasons for Recommendations

All recovery methods have been considered and where appropriate pursued, before recommending that debts are written off.

Officer time can be maximised on greater returns, focusing on debts where there is more realistic chance of recovery.