Council writes off debts and benefit overpayments totalling more than £80k

The council’s cabinet was asked to write off council tax debts of £28,343.01 and business rate arrears totalling £24,467.15 at its March meeting, where it received a report on the progress in collecting payments for the first nine months of 2019/20.

The overall collection rate was described as good in a cabinet report.

But it added: “Whilst our collection rates are good, regrettably not all of the monies owed to the council can be collected and this report contains a recommendation to write off bad debts which cannot be recovered.

“The council manages the housing benefit scheme on behalf of the Department for Work and Pensions, who fund the cost of benefits paid to claimants.

“Recovery of overpaid Housing Benefit continues to progress well, with some £748,495.61 being collected into the council’s General Fund in the first three quarters of the year.”

There were 11 benefit overpayment cases considered as irrecoverable in the report however. And the cabinet was asked to write off £27,605.93 in benefit overpayments.

Cannock Chase Council retains around 12.4 per cent of the council tax it collects, with the rest going to Staffordshire County Council, police and fire services and town and parish councils. Council tax due to be collected for 2019/20 totals £52.4 million and it is expected that around 97.5 per cent of this will be collected by the end of the financial year.

The cabinet report said: “Business rates income now forms a part of the council’s core funding, with around 29 per cent of receipts being retained by this council. The remainder is collected on behalf of central government and our major preceptors.

“Business rates due for the current year amount to £33.6 million, of which some 79.7 per cent was collected by the end of the December. Again we would anticipate the collection rate to match last year’s performance of 98.9 per cent.”

But the impact of the coronavirus pandemic on local businesses and residents led to concerns that collection rates may be affected in the coming months.

Council leader George Adamson said: “Last year it was an excellent collection rate but it is a lot more difficult in the current situation.

“Things are going to be very difficult with the coronavirus situation.”