North Northamptonshire Council writes off more than half a million pounds of debt
Nearly £600,000 of historic debt has been written off by North Northamptonshire Council (NNC) after it said it would not be able to get the money back.
According to a report heard by a council meeting on Thursday (March 13), the debts related to nine accounts which were deemed to be ‘no longer collectable’.
The debts that are being recommended for write-off total £589,959.61.
The uncollected payments were reported in private documents that are not available to the public, as the authority says the details could include sensitive or potentially confidential information.
NNC has confirmed that the write-offs all relate to unpaid business rates and council tax, with the largest sum being £233,300.13 for a business that went into liquidation.
The report explained that, given the action already taken and the status of the businesses (administration, liquidation or dissolved), it is considered irrecoverable at this time and ‘would not be economical to continue to pursue’.
Claire Edwards, North Northamptonshire Council’s executive director of finance, stated: “The authority has a duty to maximise revenue collection. However, circumstances may arise in which amounts due must, for all practical purposes, be deemed uncollectable and therefore written off.”
An alternative option to periodically review and pursue the outstanding debt was considered. It was concluded that this would be ineffective.
The council’s executive panel is responsible for the approval of any debt write-off over £25,000. The Conservative administration voted to write off the debt at its committee meeting last week.