Issue - meetings

The Portfolio Holder for Corporate Finance and Resources to submit a report seeking approval to write off debts over the value of £2,500, where officers believe that there is little or no prospect of recovering them.

(1)  Cabinet APPROVED the write off of the debts;

(2)  Cabinet NOTED the action taken by the Council to recover outstanding debts.

Councillor Ronnie de Burle,  Portfolio Holder for Corporate Finance and Resources introduced the report, which sought approval to write off debts over the value of £2,500, where officers believed that there was little or no prospect of recovering them.

Andrew Cotton, Director for Housing and Communities gave a brief overview of the report, advising that Cabinet approval was sought to write off irrecoverable debts, in line with the Council’s Corporate Debt Policy.  A report on irrecoverable debts was submitted to Cabinet on a quarterly basis, as part of financial good practice.

Mr. Cotton advised that write off amounts were detailed at paragraph 5.4 of report.  He reiterated that officers had worked in accordance with the Policy, in the cases presented and recovery actions had been exhausted.

Mr. Cotton highlighted the recommendations at 2.1 and 2.2 of the report.

During discussion the following points were noted:

·         Regrettably, there were limits to recovery action and it was necessary for the Council, as a public body and provider of services to write off debts.

·         The newly implemented Debt and Income Generation Policy provided a better structure for recovery.

·         Grants to business in respect of the Covid-19 crisis were not related to the write off of debts and therefore could not be withheld from businesses who owed money to the Council.  Businesses had to be in operation on 11 March to qualify for Government assistance and the Council only received funding on the condition it was issued to the business in need of assistance.

DECISIONS (NON-KEY)

(1)  Cabinet APPROVED the write off of the debts;

(2)  Cabinet NOTED the action taken by the Council to recover outstanding debts.

Reasons for the decision

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

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