Thousands in bad debts are written off

BUSINESSES which have gone bust have cost the borough council more than £54,000 in the last eight years.

The losses are from unpaid rent on commercial properties leased to firms by the authority’s estates department.

In a report to scrutiny commission members it was suggested a large proportion of the debt should be written off as it was now simply not practicable to recover.

Some £41,652 is involved in the write-off due to age of the debt or insolvency status of the tenant. Some of the debt dates back to 2008/09.

Hinckley and Bosworth Borough Council’s estates department is responsible for commercial property with a current annual revenue of £1,880,000.

The commercial property portfolio includes Block C of The Crescent, the former Co-op build- ing and car park, The Atkins Building, industrial premises, land, small retail and offices.

Councillors were told: “Our approach to debt recovery in relation to the commercial estate has historically been based on a supportive approach, with an easy-in, easy-out lease terms and discretionary flexibility to tenants experiencing cashflow difficulties.

“This has led some tenants to fall three to four months in arrears before catching up as we have worked with them to maintain the business and rental income.

“Unfortunately this has led to some tenants building up arrears before realising they will not be able to pay.

“This is not a significant element, considering the proposed write-off is 2.8% of total income and has been built up over many years.”