Issue - meetings

Debt write-off and recovery performance

Meeting: 08/11/2018 - Executive (Item 65)

Debt write-off and recovery performance

To seek approval for the writing off of debt and to receive a performance report on debt recovery.

Additional documents:

Decision:

RESOLVED that:

 

(i)            Thirteen debts totalling £156,362.88 (as detailed in Annex 1 of the Executive’s report) be approved for writing out of the Council’s accounts; and

 

(ii)          The performance on debt recovery for 2017/18 and 2018/19 (to date) be noted.

 

Minutes:

The Executive Member for Finance, Councillor T. Schofield, proposed that the Executive write off 13 debts. This proposal followed all possible action to recover these amounts.

 

Councillor Schofield stated that the Council took debt recovery very seriously, that it would work with individuals and companies in difficulty to bring things to a satisfactory conclusion, but that all legal tools would be used to recover the debt until it became impossible or uneconomic to do so.

 

It was also emphasised that write off was essentially an accounting process to protect the Council against mis-statement of the accounts and that in all cases it was only recommended when all possible avenues had been exhausted.  If further information was received or if the circumstances surrounding the debts changed then they would be pursued again.

 

The Executive noted that despite the proposed write offs; Reigate and Banstead remained a very high performing Council in terms of debt recovery. In support of this, Members were advised that the impact of debt write-off on the Council was a fraction of the total amount incurred. In addition, the Executive Member highlighted that the Council had one of the very best recovery teams in the country.

 

A Member sought clarification on the actions taken by officers to recover debts owed and raised concerns over the timeline in a number of cases, set out in Annex 1 of the report. Members were assured that the Council performed above average nationally to pursue debts as a priority, as far as possible.

 

Councillor Schofield informed the Executive that in 2016 the responsibility for recovering Housing Benefit overpayments had been passed to a dedicated team within Revenues and Benefits. It was noted that in just two years the Council had increased recovery by over £200,000 per year and were now in a position where recovery exceeded new debt being generated. It was highlighted that in doing so, the Council had reviewed a number of outstanding debts and this had accounted for the high number of Housing Benefit debts included in the report.

 

During the discussion a number of issues were considered in relation to statutory duties for local authorities concerning Council Tax collection, the recovery of Housing Benefit overpayments, and the collection of Business Rates. The Head of Revenues, Benefits and Fraud was asked to provide a briefing note to all Members to clarify roles and responsibilities in relation to the process for collecting and recovering taxation monies.     

 

RESOLVED that:

 

(i)            Thirteen debts totalling £156,362.88 (as detailed in Annex 1 of the Executive’s report) be approved for writing out of the Council’s accounts; and

 

(ii)          The performance on debt recovery for 2017/18 and 2018/19 (to date) be noted.

 

Reason for decision: One of the debts related to National Non Domestic Rates (NNDR or Business Rates), and twelve related to Benefits overpayments. All possible action had been taken to recover these amounts and approval was sought to technically write them out of the accounts.

 

Alternative options: To not approve the proposed write  ...  view the full minutes text for item 65