Peterborough council looking to write off £100k debt
It will require cabinet approval
Peterborough City Council is seeking to write off £100,362 of irrecoverable debt.
A report to be put before the council’s ruling cabinet on December 16 noted that £48,490 of the debt related to housing benefit overpayments, while £21,770 related to non-payment of council tax and £30,102 was uncollectable sundry debt.
“Despite our best endeavours, it is inevitable that a small percentage of debt will remain uncollected and will ultimately have to be written off,” the council report stated.
“There are a number of reasons why this happens, with the most common being where a company has gone into liquidation, an individual has been made bankrupt, a debtor has died with no funds available within the estate, or where it has not been possible to trace a debtor.
“Writing off irrecoverable debt is a necessary management tool, standard practice and recommended as part of good financial management.”
The city council expects to receive around £120 million a year in business rates, £130 million in council tax, and in excess of £70 million of sundry debt income.
As a result, the council recovers millions of pounds every year relating to previous years’ debt, sometimes dating back several years, due to persistent recovery activity.
The cabinet report stated that the council was committed to taking all necessary action before considering a debt for write-off.
This action included multiple written reminder letters early in the recovery process, a telephone call follow-up, senior management dialogue with counterparts, and where necessary, court and enforcement action.
It could take several years before all actions had been undertaken, at which point it would no longer be economically feasible to chase with no prospect of recovery, according to the report.
Cabinet members are recommended to approve the write-off of the irrecoverable debt at next week’s meeting.