Bad debts written off to tune of £290,000

COUNCILLORS have agreed to wipe out more than a quarter of a million pounds of bad debt.

The write-offs include more than £239,000 in business rates, due to companies going bust. One of the debts goes back to October 2013.

Almost £52,000 in council tax debt and more than £2,000 in housing benefit overpayment has also been discharged, including two cases where the debtor cannot be traced.

Members of Hinckley and Bosworth Borough Council’s executive committee agreed to abandon attempts at obtaining repayment.

In a situation where a firm has been liquidated the authority is legally prohibited from taking any further action.

In other instances the council will try all means to come to an arrange- ment for getting the money back.

The report to councillors stated: “Writing off debts is only considered where appropriate recovery and enforcement options have been taken.”

Business owners or individuals who find themselves owing the council money are initially sent reminders. If two reminders are issued within a year the debtor is liable for a court summons and the advance of a liability order which allows enforcement such as attachment of earnings, bailiffs, a charging order on the property or commencement of bankruptcy proceedings.

The authority has provided for bad debt in 2016/17 of more than £63,000 business rates, £918,000 council tax and £249,000 housing benefits.