Issue - meetings

RESOLVED that the report concerning the Council’s Corporate Debt as at 31st March 2024 be noted.

Executive considered a detailed report presented by the Portfolio Holder for Resources in relation to a summary of the Council’s corporate debt position as at 31st March 2024.

The main sources of income for the Council’s General Fund were business rates, council tax, a small number of government grants and service-related income. The main source of income for the Council’s Housing Revenue Account was dwelling rent, often referred to as ‘housing rents’. Government grants were paid over to the Council on agreed dates directly into the Council’s bank account so there was no need to include them on any debtor system. For most other sources of income, these had to be requested.

Overall, in 2023/24 £18.493m (net) more in income had been raised on the Council’s systems. Arrears had increased by £0.117m but if any reductions in arrears were excluded, the increase was £0.902m. The impairment allowances had been increased by £0.682m (net).

International Financial Reporting Standard (IFRS) 9 – Financial Instruments, required the Council to write-off debt as soon as it was deemed uncollectable. This was to ensure the correct value of arrears was included on the Council’s balance sheet at 31^st March each year.

The Council’s Constitution allowed the Director of Finance & Section 151 Officer, after consultation with the relevant Portfolio Holder, to authorise the write-off of bad debts up to a limit of £2,500. Executive approved the write-off of bad debts which were individually over £2,500 on receipt of a report during the year. In all cases, every attempt was made to collect the outstanding debt before write-off was proposed and if there was chance to collect the debt in the future, these could be written back on to the relevant system. Writing-off amounts which were no longer collectable was an essential part of the debt management process – it ensured that a focus was maintained on those amounts which were collectable, thus maximising overall levels of collection.

This year had seen a significant amount of housing rent debt written-off as officers had looked through the debt in detail using the new software package purchased to help them focus on the most collectable arrears.

Moved by Councillor Clive Moesby and seconded by Councillor Duncan McGregor

RESOLVED that the report concerning the Council’s Corporate Debt as at 31^st March 2024 be noted.

Reasons for Recommendation

To ensure that Executive were informed of the latest position concerning the Council’s debt.

Alternative Options and Reasons for Rejection

The report was for information only.