Over half a million pounds in unpaid council tax and business rates to be written off in North East Lincolnshire
Cabinet agreed to write the debts off as the payment of them is considered “very unlikely”
More than half a million pounds in uncollectable council tax and business rates have been written off by North East Lincolnshire Council.
Several companies had dissolved while still owing the authority large amounts which had built up over years.
Cabinet agreed to write the debts off as the payment of them is considered “very unlikely”.
The sums include £51,000 in unpaid council tax and nearly £575,000 in business rates.
A single Grimsby-based company had missed 65 payments between going into administrative receivership in 2011 and officially being dissolved in 2020.
Its unpaid council tax debts amounted to £51,409.
Three companies which have now been dissolved also owed a total of £574,974 in business rates.
Two linked Manchester-based companies had debts of £486,057, and the Hull branch of property company owed £88,917.
The level of the debt meant that the write-offs had to be agreed by cabinet.
Councillor Stan Shreeve, the portfolio holder for finance, said:
“It is always difficult to bring this topic to cabinet. However, we have to face up to the facts.”
Speaking about the business rates, he added: “These are numbers of a different magnitude. They have built up over a period of time.
“Unless we write them off, we are just storing up problems for the future.
“We will continue trying to recover them. However, some of the organisations are no longer in being.”
Councillor Stewart Swinburn said:
“This is very disappointing, and this money could have helped given the problems with finance the council has faced over the last few years.”
A report presented to Cabinet said: “Whilst the debts will remain in the Council’s records, it is important to note that obtaining payments against these debts in future is very unlikely and the write off of these accounts is in accordance with good accounting practices.”