Renfrewshire Council is preparing to write off more than £550,000 of irrecoverable debt – if elected members approve the move this week.
The step is set to be taken as the recovery of debt from a number of individuals and companies is no longer considered “viable” by finance officials.
A total amount of £553,486.52 will be reviewed at the local authority’s finance, resources and customer services policy board on Thursday.
Financial regulations stipulate a report on the write-off of sums in excess of £10,000 is submitted to the board for consideration.
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The paper put together by Emma Shields, strategic service delivery manager, explained the council has already “pursued” the debts in question before adding it is now “considered prudent” to wipe out the outstanding balance.
The document said: “The debt recovery process involves extensive effort by the council and its collection agents to locate the debtor and recover the debt.
“During this process a stage can be reached when it is recognised that the recovery of the sums is no longer viable and it is prudent to write off the recovery of the outstanding liability.
“The council has already pursued each of the debts summarised … through its follow-up cycle and it is considered prudent to write off the outstanding balance.
“The approval for the write-off will enable the council to prudently reflect within the financial accounts an accurate representation of the collectable debt.”
The report said the council continues to “monitor the accounts” and, where the circumstances of the debtor change, will “instigate further recovery action” when appropriate to do so.
The level of write-off will be contained within its bad debt provision.
The debts cover council tax (£54,761.12), non-domestic rates (£388,058.21), housing benefit overpayments (£30,246.53) and sundry debtors (£80,420.66).
It comes months after a sum of £422,265.99 of irrecoverable debt was written off by the council, having been rubber-stamped by the board in February.
At the time, Councillor Alison Ann-Dowling, Labour group finance spokesperson, said: “On a regular basis, we’re confronted with having to write off debt that has accumulated.
“We’re now sitting at over £400,000 for money owed to the council which is just a staggering amount of money when you think of what we could do with that in terms of the services that we’re trying to fund for the people of Renfrewshire.
“I was really struck by the length of time some debtors had to run up council tax debt – one of the debtors goes back to 2004 in one instance.”
Councillor John Shaw, SNP finance convener, responded at the meeting: “I think the question you’ve asked there has been asked every time this report comes up.
“We’ve all had training, we’re all aware these are debts that are essentially uncollectable.
“While I share your concerns that we’re losing these sums of money each time, I think you would be the first person jumping up and down if there was legislation passed that made a lot harsher debt collection regime put in place.”
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