Taxpayers will pay the price as council scraps £500k debts

Debtors have had almost half a million pounds in owed cash wiped by Renfrewshire Council.

Finance chiefs chased deficits owed by firms, homeowners and tenants.

But they have been dropped claims – forcing the taxpayer to foot the bill.

Among the sums being written- off is a £ 13 bill from almost two decades ago.

Rob Gowans, of Citizens Advice Scotland, warns bills are mounting up for many due to changes to benefits.

“The rise in rent arrears is one of the most worrying trends we see.

“There are a number of factors driving this and we have no doubt that the flaws in Universal Credit are one of the main ones.

“We have been calling for a halt in order to fix Universal Credit.

“Some welcome changes have been made but many of the problems still remain and this report shows the impact these are having on people’S lives.

“We have set out the key flaws that need to be addressed, including reducing the waiting period before payment, cutting out processing delays and reducing deductions.

“These are relatively simple changes that could make a huge difference to millions of people.”

Council chiefs have written-off sums owed by 13 debtors.

Firms owe the largest amount for unpaid non-domestic rates.

Half a dozen businesses owe a total of £358,537.

Bosses revealed five should have paid more than a quarter of a million pounds between them.

But they have been liquidated, with no prospect of recovering the cash.

Another company owed more than £ 92,000 but has already had its assets seized.

Homeowners and tenants owe almost £60,000 in written-off funds.

One debtor died leaving behind bills of just over £10,000.

Two more – owing nearly £34,000 in total – had their assets sequestrated.

And another placed on a trust deed owes almost £13,500.

Council bosses flagged up almost £30,000 lost for services.

A waste collection firm went bust owing hundreds of pounds.

And a social care user died leaving debts of around £27,000.

The losses will be met by the local authority from a budget set aside.

Bosses revealed the decision in a report to councillors.

It stated: “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.

“It is then prudent to write- off the recovery of the outstanding liability.

“The council has already pursued each of the debts through its follow up cycle.

“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 council continues to monitor the accounts and, where the circumstances of the debtor alter, will instigate further recovery action as appropriate.

“The level of write- off will be contained within the council’s bad debt provision.”

The council has already pursued each of the debts... it is considered prudent to write these off