Councillor Vince Langdon-Morris Cabinet Member with responsibility for Resources and Value for Money introduced report ES-2564 which related to the non-domestic rate write-offs.
The report sought approval for the write-off of debts in relation to 26 cases of individual Non-Domestic Ratepayers balances totalling £982,713.24. In all 26 cases, the Council has taken the recovery process as far as possible, with the majority having been through the Magistrates‘ Court and having Liability Orders issued, but since the Liability Orders were issued, the various companies have been dissolved, gone bankrupted or absconded. As a result, further recovery action cannot be undertaken and the debts deemed unrecoverable.
Councillor Ashton queried how successful debt collection was through Anglia Revenue Partnership (ARP).The Chief Finance Officer responded that the detailed cases had been stuck in the system for various reasons. ARP assured they have procedures in place and was positive in the action being taken. There had been an internal audit which was satisfactory, with recognition on improvements that had been made and would be made going forward. Councillor Ashton responded that it there would always be some debts stuck in the system, and it would be good have the information on how good debt recovery was. Councillor Langdon-Morris read from the report which outlined some of the personnel reasons for the backlog.
Councillor Beavan sought assurance that going forward, all debts would be annually reviewed. The Chief Finance Officer responded that assurance had been provided that processes were in place and top debts were being reviewed on a monthly basis.
The Chair commented on the companies which were registered outside of the UK and queried if there were any regulations which could be applied to them. The Chief Finance Officer advised that ARP informed they cannot prevent companies who are registered offshore being liable for business rates.
Councillor Ashdown recognised that some of the debts were inherited by previous authorities and queried the type of business that had been involved. Councillor Langdon-Morris responded that there had been international finance companies, offshore companies and transport companies which had gone into insolvency. The Chief Finance Officer advised that there were a range from the previous Waveney and Suffolk Coastal districts.
Councillor Langdon-Morris responded that the ARP document would be circulated and that once the debts had been through, the recovery process set in legalisation and a liability order had been obtained at a magistrate’s court, it would be sent to ARP enforcement for collection. If the debt could not be collected or the company was based outside of the area, it would be passed to an external enforcement agency.
Councillor Jepson queried if there was a way to track if businesses on the record came forward as new businesses. The Chief Finance Officer responded that she would follow up with ARP to see what checks are currently in place. If a debt becomes recoverable it can be written back on.
The Chair highlighted empty premises in local market towns and if there was a loophole in place where people could get out of paying business rates.
Councillor Langdon-Morris responded that there were examples where commercial sites have been vacant for long periods of time. The Chief Finance Officer responded that ARP were attending an upcoming informal cabinet, where questions could be asked directly to them.
Councillor Candy thanked officers for the report, which was useful. Councillor Candy was keen to see an annual review.
The Chief Finance Officer concluded that it was not constitutionally required to bring the report to Cabinet, however the team wanted to bring it forward for transparency and debate.
On the proposition of Councillor Langdon-Morris seconded by Councillor Candy it was unanimously
RESOLVED
That Cabinet:
1. Approved the write-off of 26 Non-domestic rates debts totalling £982,713.24, detailed in Appendix A.