Taxpayers left to pick up bill for council’s missing £337k

Ta x p a y e r s are footing a bill of nearly £ 337,000 in uncollected rates and benefit overpayments.

Renfrewshire Council revealed more than half of the debt is from six firms that went bust owing huge sums.

The massive sum is being written-off as bosses try to plug a £45million funding blackhole.

Council chiefs insist they are trying to claw back all they can.

A spokesman said: “We make every effort to ensure all debt owed to the council is repaid.

“We will only consider writing off debt when all possible avenues of collection have been exhausted.

“We continue to monitor the circumstances of the debtor and instigate further recovery action where possible.

“Wri t i n g o f f d e b t is a sound financial management tool which allows us to accurately reflect the collectable debt in our financial accounts.”

The local authority is owed cash for unpaid business rates, council tax and overpaid housing benefit.

Records show six companies went bust owing almost £170,000.

Mrkhan Card Industries Ltd had the biggest outstanding bill – £42,789.

Exile Fitness Ltd was next, trading as F4I Limited, with a debt of £29,850.

Akmh Freight Transport Ltd owes £ 26,936, while Seasons Gifts Ltd has £26,900 outstanding.

Style with Style Ltd is £ 21,362 in the red and Greetings 4 U Ltd has £21,046 to pay.

All of the companies have been dissolved.

Almost £125,000 is owed in outstanding council tax payments.

Ten debtors have been flagged up for their outstanding bills.

Council bosses have written seven off after they were sequestrated, two after they were placed in a trust deed and one, who died.

Unpaid council tax bills stretch all the way back to 1993.

Housing benefit was overpaid to six claimants – to the tune of £30,000.

Each of those have been sequestrated and are unable to pay.

Bosses insist claimants and companies have been chased for the cash in a report.

It states: “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, and it is prudent to write-off the recovery of the outstanding liability.”