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£100,000 of debt written off by council

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editorial image

'More than £100,000 of ‘irrecoverable ’ business rates, council tax and sundry debts has been written off by Erewash Borough Council.

Councillors agreed to write off the debt, which totals £107,765.80, at a meeting of the council executive.

A report containing details of the irrecoverable debt and a break-down has not been made public.

Dave Watson, head of finance at Erewash Borough Council said: “The write off of certain debts were considered to be irrecoverable in accordance with the council’s financial regulations.

“This does not preclude further recovery action being taken should further information subsequently come to light which makes recovery possible.

“The council has a good track record in the recovery of debt and any write off is only considered as a last resort.

“Erewash Borough Council has frozen council tax for the last five years with the Band D tax remaining at £165.91 per year (£3.19 per week)”.

He added: “Only 11 per cent of the total council tax bill goes to pay for borough council services.”

A document which contains the minutes from the meeting, states: “The executive considered a report of the director for resources which sought approval for the write-off of certain debts which were considered to be irrecoverable in accordance with the council’s financial regulations.”

Local authorities in England are forced to write of irrecoverable debt at the end of the financial year.

Money owed to the council can become irrecoverable if a company is dissolved or goes bankrupt.

 

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