Agenda item

To consider the enclosed report which details the level of write-offs for the last financial year and seeks approval of an updated write-offs policy.

Officers presented the Write Offs report for the period April 2015 to March 2016.  The report set out data in respect of the write off of irrecoverable debts in 2015/16 together with a revised Write Off Policy which took account of changes to best practice and streamlined the administrative procedures.

Details of written off debts during the period for Council Tax, Non-Domestic Rates, tenant arrears and overpaid housing benefit were detailed within the report, with a total of £452k being written off during the financial year.  Officers explained that there was an element of fluctuation in the value of write offs due to the timing of action being taken.  A debt was only written off as a last resort and officers were confident that there was no further action that could be taken to recover it.  It was also explained that due to the introduction of a new finance system there had been no write off of sundry debts during the period.  These were being reviewed by Officers as a number of them were old.  It was likely therefore that this would show an increase in sundry debtors for the current financial year.  It was also highlighted that Officers were able to “write back” debts where information later came to light that enabled further recovery action to take place.

In respect of the Write Off Policy it was highlighted that the amendments were merely to ensure best practice was followed and to streamline the administrative procedures.  In future it was proposed that formal write offs would be agreed by the Director of Finance and Corporate Resources in conjunction with the Portfolio Holder for Corporate Management.  Members were also provided with details of a debt matching agreement which, although not used frequently, could be put in place if required.  The policy allowed Officers to check debts across all Council systems to ensure that customers could be offered the correct level of support and to streamline the process of debt recovery.

The Portfolio Holder for Corporate Management reassured Members that he would work closely with Officers.  The aim would be to ensure that decisions were made as quickly and efficiently as possible to enable the Council to recover as much as possible.

Members questioned the lack of a set timetable for debt recovery and Officers explained that at the early stages there was indeed a timetable which was adhered to.  However at the later stages of recovery, it was often more difficult to do this as each case was judged on its own merits and the circumstances of each customer varied greatly.

The reference within the policy to a debtor’s circumstances and in particular the reference to the debtor’s mental or physical health was questioned as to whether it was necessary or appropriate.  Officers assured Members that this was simply added in order to provide some context as to how customers’ circumstances were taken into account when making decisions.

RESOLVED that

the revised Write Off Policy be adopted and the contents of the report in respect of the level of write offs be noted.