Issue - meetings

Committee considered a report which provided a summary of the Council’s Corporate Debt position as at 31^st March 2022.

The Treasurer referred to sources of income as set out in Table 1 in the report and advised Committee that the figures showed an increase in income from most sources. However, it was noted that the reduction in income from Housing Benefit overpayments meant that less claimants had been overpaid resulting in less income to reclaim, which was seen as a positive rather than a reduction in income.

Reference was made to Table 2 in the report regarding arrears, which had increased in 2021/22 for NNDR, Council Tax and Sundry Debtors.  During 2021/22, there had been less relief provided by the Government for businesses and individuals to mitigate the financial implications of Covid, compared to 2020/21.  The current levels of arrears for NNDR and Council Tax were the highest they had been in recent years and were almost certainly as a consequence of the pandemic.

Table 3 in the report provided details of Bad Debt Provisions which had been slightly increased.  It was noted that although arrears levels for some sources were higher than normal, the provision pots built up over the last two years meant only a small increase was required this year.

Pre-Covid debt collection processes had been carried out for most of 2021/22 and it was clear that the pandemic had effected businesses and individuals’ ability to pay.  The current ‘cost of living’ crisis may exacerbate this, but efforts would continue to provide the payment plan facility for debtors to help wherever possible and carry out recovery action as necessary.

A Member referred to Council Tax and queried whether the Government provided any financial support to the Authority for residents struggling with the cost of living.  The Treasurer advised that currently there was no financial support, however, the Council offered payment plans to residents to help them continue to pay their Council Tax and hopefully stop them falling into arrears.

In response to a question from the Coopted Member, the Treasurer advised Committee that dependent on communication being held with a customer regarding their Council Tax arrears it would be in the region of three/four months before they were referred to court for non-payment.  However, every effort was made to support customers in making payments as the Authority was unable to remove their liability for the debt and had a responsibility for the collection of Council Tax and NNDR to the major preceptors.

In response to a Member’s question, the Treasurer confirmed that external agencies acted on behalf of some customers who were experiencing problems with debt.  The Portfolio Holder for Finance stressed the importance of local Councillors signposting customers to any relevant agencies for assistance.

The Treasurer highlighted that the £150 Council Tax Rebate Grant had now been paid to all eligible customers, however, only 80% had been collected to date.  Revenues staff were currently contacting customers who had not collected the grant and  ...  view the full minutes text for item 17