South Holland District Council has written off more than £200,000 debt.
Despite extensive efforts to recover the money, the council’s cabinet has agreed to write off a total of £218,691 with an indicative loss to the authority of £152,456.82, writes James Turner, Local Democracy Reporter.
A report to members said options for collecting the debts had been exhausted and officers determined there was no realist prospect of recovery.
A single debtor accounts for 59 per cent of the total, relating to ‘sundry’ debt.
The report also said the post-pandemic impact and the cost of living crisis both affected the collection, recovery and enforcement of debt.
Data from central government indicates that while the number of Individual Voluntary Arrangements (IVAs) registered in August 2024 was similar to previous figures, bankruptcies were lower during the last 12 months.
The write-offs arise for a variety of reasons, including being unable to trace the debtor, insolvency, ceasing trading with no assets, or being deceased with insufficient funds in the estate.
Council leader Nick Worth explained that South Holland has see 441 insolvency-related items of work in the financial year to date.
He added that there was an increase in Debt Recovery Orders ‘consistent with the national position’.
Following the removal of the £90 administration fee, there has been the highest number of Debt Relief Orders since the introduction.
The write-off included one absconder not paying council tax and receiving a housing benefit overpayment totalling £4,158.34.
Insolvency accounted for a non-payment of £26,905 for Council Tax, £7,592 business rates and £7,143 housing benefit overpayment.
The district council would receive ten per cent of the Council Tax, 40 per cent of the business rates and 60 per cent of the housing benefit overpayments.
But it would have benefited by 100 per cent of the £135,721.75 ‘sundry debt’ accrued which was deemed to be unenforceable.
