Stafford council writes off £100,000 tax and business rate debts

The funds were unable to be recovered by the authority, and its cabinet agreed to write off business rate debts totalling £91,816.72 and council tax arrears worth £9,842.27 on Thursday.

Eight housing benefit overpayments totalling £52,851.55 have also been deemed “irrecoverable”, a revenue and benefit collection report covering the three months up to December 2021 said.

The report added: “Whilst our collection rates are good, regrettably not all of the monies owed to the council can be collected.

“All reasonable and lawful attempts are made to recover all amounts due. In the first instance this involves the issue of bills, reminders and final notices, followed by Summonses in the Magistrates’ Court where the warning notices are not effective.

“At all stages of this process, debtors are encouraged to engage in voluntary arrangements to repay their arrears, to prevent the need for formal action. Where necessary and when Liability Orders are granted by Magistrates, the council uses its powers to make deductions from earnings and benefits of debtors, where it can, and instructs Enforcement Agents where such deductions are not possible or appropriate.

“In the most severe cases and for debts exceeding £5,000, the council will consider personal bankruptcy action against individuals.

“During the pandemic and particularly during the 2020-21 year our recovery actions were relaxed whilst courts were closed and we took additional steps to ensure that residents received the help that they needed, both in terms of claiming reductions or benefits and making payment agreements.”

Deputy leader Councillor Mike Smith told fellow cabinet members on Thursday: “Council tax due this year is at 83 per cent at a time when 75 per cent of the year has passed, so that is well on target. It’s the same with business rates – 76.5 per cent has been collected within three quarters of the year.

“We expect to collect, as we normally do, in the order of 98 per cent or 99 per cent of the relevant dues throughout the year.

“In respect of the write-offs, this is the first report of this nature we have had for some time because the department has been heavily engaged in dealing with the payment of the grants of £40m-plus to businesses throughout the borough.

“In respect of the overpayments there’s only one in there which is a genuine mistake by our staff. The Government does accept that errors will occur and allows us a level of error which we are well within and therefore this will not be a loss to the council.”