Issue - meetings

To consider the debt write-off and recovery performance for the period.  

RESOLVED that:

(i)            Three debts totalling £19,947.88 (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 the 2018/19 financial year be noted.

Councillor T. Schofield, Deputy Leader and Executive Member for Finance, proposed that the Executive write off three 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. 

In response to questions, the Executive was informed that the three debts totalled just under £20,000. Of these debts, and as set out in the report, two related to Business Rates and one related to a Benefits Overpayment.

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.

RESOLVED that:

(i)            Three debts totalling £19,947.88 (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 the 2018/19 financial year be noted.

Reason for decision: Two of the debts related to National Non Domestic Rates, and one related to Housing 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 accept the report, but ask Officers to provide more detail on specific issues contained in the report.