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Executive (I)
Friday, 30th August, 2013

REPORT TO:10
DECISION NUMBER:PH/89/2013
EARLIEST DATE FOR DECISION:30th August 2013

WRITE OFFS FOR UNRECOVERABLE BUSINESS RATES AND COUNCIL TAX
Matter for Consideration:
This report identifies applications to write off outstanding balances on Business Rates and Council Tax accounts where there is no prospect of collecting the outstanding amounts. The amounts are above the threshold for an officer of the Revenues Shared Service to exercise delegated powers which are £10,000 for Business Rates and £5,000 for Council Tax. Balances written off will show as uncollected money on Revenues collection statistics.
Information:
Business Rates

Write off totals can be broken down as follows :-

A total of 30 businesses had amounts totalling £824,412.28 that could not be collected due to Bankruptcy or Insolvency. This comprised of 22 Companies and 8 Individuals.


A single company had an uncollectable debt of £96,102.68 where a settlement was agreed resulting in the amount to be written off.

In total 18 businesses ceased to trade owing £373,902.88, and the liable parties have been unable to be traced to recover the debt. This comprised of 6 companies and 8 individuals.

A total of 21 businesses had debts of £392,189.83 that require written off as there was no prospect of recovering the amount due. This was debt outstanding where the liable parties have insufficient assets to pay the amount due and further action would be uneconomical. This relates to 8 companies and 13 individuals.

Council Tax

No Council Tax amounts were written off over the threshold during 2012/2013.

In the opinion of the Principal Income and Recovery Manager all the above outstanding balances are uncollectable and as such, it is recommended that the write offs are authorised as requested. All options to secure payment of the sums outstanding have been exhausted.

In certain cases, for example if a dividend is received from a bankruptcy or liquidation, the corresponding balance can be re-instated.

The Leader of the Council wishes to make the names of the debtors public, but the Data Protection Act 1998 prohibits their publication.

Does the information submitted include any exempt information?NO
Legal Considerations:
Information relating to Business Rates account holders may be subject to the Data Protection Act 1998.
Personnel Considerations:
None
Financial Considerations:
For 2012/2013 the Business Rates were paid into a National Pool and re-distributed so there is per capita negligible impact on the Council’s finances. An allowance is made to sums written off in setting the level of Council Tax
Performance Management Considerations:
Sums which remain uncollected and written off reduce the Council’s collection performance, which is monitored on a monthly basis.
Risk Management Considerations:
None.
Relevant Officer:
Steve Thompson, Assistant Chief Executive- Treasurer Services
Relevant Cabinet Member:
Councillor S. Blackburn
Consultation Undertaken:
None
Background Papers:
None
Is this a key decision?NO
Is the decision required in less than 5 days?NO
Recommendations:
That the accounts identified are authorised for write off.
Reasons for Recommendations:
Amounts unable to be collected.
Is the recommendation contrary to a plan or strategy adopted or approved by the Council?NO
Is the recommendation in accordance with the Council’s approved Budget?YES
Other alternative options to be considered:
Not to write off the amounts.
Policy, Overview, and Scrutiny Committee Chairman (where appropriate)
Date Informed: N/A
Date Approved: N/A
DECLARATION(S) OF INTEREST (if applicable)
None
Decision:
The Leader of the Council agreed the recommendation as outlined above namely: That the accounts identified are authorised for write off.
Date:30th August 2013
Reason for Decision:
The amounts outlined are unable to be collected.

Date of Publication:		30th August 2013


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