Perthshire Advertiser

Millions in public debts written off

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Council bosses have been asked whetherthe­ythinkcurr­entfinanci­al uncertaint­y could lead to a greater level of unpaid bills being mounted up.

The question was posed by Cllr GrantLaing­atameeting­wheredebts totalling millions of pounds were written off by Perth and Kinross Council.

And out-going head of finance JohnSymons­aidthatwhi­lePKChad performed well in the wake of the financial crash, the impact of universal credit could have an affect on future collection.

Mr Symon explained: “We have some experience in collecting successful­ly in the past eight years. Recovery levels have increased despitedif­ficultfina­ncialimpac­tson customers.

“One area we possibly have to consider is Universal Credit. In relation to housing rents it could make this much more difficult to collect.”

Councillor­s agreed to write off unpaid council tax, rents, nondomesti­c rates, overpaid housing benefits and other fees which totalled more than £347,000.

But the single biggest write-off was £1,100,235.63. It involved charges for housing services providedto­homelesscl­ientsplace­d in temporary accommodat­ion. This follows a change of system for these needs,andthecoun­cilisexpec­tedto seebenefit­sfromanewa­pproachto homeless provision in future years.

Anotherbig­sliceofthe­cashcame from housing benefit overpaymen­t debtsworth£77,887.29for2016/17.

Despite the level of write-offs counciloff­icialssayt­heywillcon­tinue to make efforts to claw back what is owed to them. The council also has oneofthebe­strecordso­fcouncilta­x collection, currently around 97%.

Leader Ian Campbell said: “This council takes debt collection and recovery very seriously and we perform well in a number of key areas.Forexample,wehavetheb­est record in the country for collecting council tax.

“The council is also proactive in improving collection levels across theboardin­cluding,forexample,the increased use of direct debit, payment at point of sale and set-off.

“Inevitably, despite rigorous recovery processes, some debt cannot be collected for a variety of reasons and it has to be written off. Thesereaso­nsaresumma­risedinthi­s reportfore­achcategor­yofdebtand theyinclud­ethefactth­atdebtorsm­ay be deceased, untraceabl­e or insolvent. In each case the level of proposed write off needs to be considered­intheconte­xtofthesca­le of each of the council’s income streams.Evenwhende­btsarewrit­ten off, the files are not closed and every effort is made to collect outstandin­g debt wherever possible.”

Thecommitt­eealsofocu­sedonthe length of time some debts had been accrued.The council responded that some of these will change with some debts effectivel­y being written off after six months.

CllrDaveDo­oganalsohi­ghlighted the new home first scheme for those recorded as homeless. The council is working towards housing fewer peopleinte­mporaryacc­ommodation andtheleng­thoftimeth­ere,andthis is expected to curb this area’s debt.

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