£1m in unpaid debts written off by North Lincolnshire Council
NORTH Lincolnshire Council is to write off more than £1 million in unpaid debts.
The cash, which amounts to £1,127,845.81, is money the authority says cannot be recovered or is uneconomic to pursue.
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Not recovered: North Lincolnshire Council is writing off more than £1 million of debts – including unpaid council tax
The biggest single case relates to a firm which the council said had business rate debts of £158,426.58.
An out-of-court settlement was reached with the firm and the council has received £47,000.
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And the largest single sum of council tax debt to be written off is £5,432, dating back to 2007.
Councillor Neil Poole, cabinet member for policy and resources, said: "In any organisation, be it a small local business or a multi-national company, you will incur uncollectable debt.
"Local authorities are not exempt from this process.
"However, I do feel North Lincolnshire Council has an excellent team of officers who do a difficult job very well.
"Our council tax collection rate of 99.4 per cent shows we will leave no stone unturned to recover money owed to the council tax-payers of North Lincolnshire."
Money owed includes debts relating to council tax, national non-domestic business rates, housing benefit overpayment and car parking penalty charge notices.
Despite being written off, the debts will remain on the council's records and could still be collected in the future.
And councillors have stressed the write-offs come against a backdrop of above-average collection rates for council tax and business rates.
The authority is estimating it will recover 99.4 per cent of both council tax and business rates for the current financial year in the fullness of time.
Of this, 97.5 per cent is expected to be collected by March 31.
The majority of uncollectable debt is shown to be business rates, which accounts for £551,026.22 of the total.
Mr Poole insisted the authority would take a tough stance against people who did not pay debts.
He said: "If someone can't pay, we will do all we can to assist them to find a way of recovering the money.
"If they won't pay, we will use every legal method to pursue them to recover North Lincolnshire tax-payers' money."
Council figures show £34,523 in previously written-off council tax debt has been recovered in the last year.
This adds to £3,348 business rates and £800 in other debts.
8 Comments
by IT_MAN
Sunday, February 10 2013, 6:02PM
“Years ago they would take everything except the clothes on your back and tools of your trade, maybe if this happened now they would find the money to pay their debts. I know it's not a nice way to do it but it's the only way some people understand, why should we all contribute towards their luxery goods when we can't afford them ourselves.”
by Shinya
Sunday, February 10 2013, 4:07PM
“Send in 'The Sheriffs ' they are all big lads and don't take no for an answer unless a legal issue. It's amazing how many pay up when the sheriff pops a 'Denver Boot' on a half decent car on the drive or starts making a list of goods to be seized. Granted they act on high court writs but a similar system should apply.”
by scunnyexile
Saturday, February 09 2013, 7:59PM
“I reckon plasticscouse and his merry men could do a good job here.”
by TFiLive
Saturday, February 09 2013, 2:45PM
“Owed £160,000 by one debtor but accepted a settlement of £47,000 - clearly the business was still trading and the debt therefore fully recoverable - but the Council choose to do a deal. Where-as struggling families HAVE to pay all their Council Tax irrespective of circumstance and by hook or crook or heavy handed Bailiff they'll have their £'s of flesh.”
by jeannie777
Saturday, February 09 2013, 12:13PM
“well....typical of the council...never mind the payers who struggle to meet their responsibilities.....just let the non payers off so they have more in their pocket for beer, fags and other illegal substances......my friend who was self employed had 3 weeks sick off over xmas and even though the council was informed he could pay the next week when he was back earning they still slapped a court order on him and £55 court fine.
His installments had been paid on time all year and it was only the last 2 dec and jan he asked them to wait for.
even though the council tax period is not up until the march 2013!!!! people of scunthorpe are fed up of these scroungers and ewbfchamp is right...take the money out of their benefits or wages before they get them and make them face up to their responsibilites for a change..”
by tuckeratlarge
Saturday, February 09 2013, 10:27AM
“ewbfchamp: Well said”
by ewbfchamp
Saturday, February 09 2013, 10:19AM
“This is an insult to those of us who HAVE paid because somewhere long the line this money will be recouped one way or another and we will be paying again ! What about attachment of earnings if any debtors happen to be working - alternatively take it out of any allowances paid by the state (which we are funding anyway). What a disgrace.”
by tuckeratlarge
Saturday, February 09 2013, 9:38AM
“People are getting wise to the bumwads from ***********, telling them to "do one" instead of being scared. Therefore our council can't recover the money.
If they used the money wisely the people would be more inclined to pay.”