Rutland County Council to write off over £150,000 of unpaid debt
The Council say pursuing the debts is too costly and time-consuming
Last updated 19th Feb 2024
Rutland County Council will write off more than £150,000 in debts it is owed – and will pocket £230.52 that someone overpaid.
Unpaid council tax and business rates have left the council with a £157,454.22 hole in its 2023/24 budget that members have decided it’s too costly or time-consuming to pursue.
The council invoices for about £10 million in ‘sundry’ payments a year. The unpaid amount is nearly 2% of that.
Members of the council’s cabinet were told by officers at a meeting on Tuesday (February 13) that the outstanding debts were believed to be unrecoverable.
They were told: “Every effort is made to collect all monies due by the most effective and appropriate method. This includes reminder letters, attachment of earnings and benefits, civil enforcement action and special arrangements to pay.
“The council has a good track record of collecting debt and in the context of these collection rates, the level of proposed write off is low.”
The debts comprise two amounts totalling just over £12,500 for which all forms of recovery had been exhausted, just over £12,000 from three debtors the council was unable to trace, and 11 debts totalling just over £40,900 from people declared bankrupt or from who the council had no prospect of recovering the money.
Uncollected business rates of £48,150 resulted from business failures and company liquidation, while one debtor absconded owing £3,552.
The council will also write-off unpaid invoices for its social care totalling £15,658, and more than £37,000 that it paid out accidentally to people receiving housing benefit.
The council also has an undue credit to its name – someone has overpaid their council tax by £230.52 and if they don’t come forward, that too will be written off.
Members voted unanimously to write off the debts.