Agenda item

The Strategic Director of Finance and Section 151 Officer presented the report to the Committee.

Table 1 of the report detailed the sources of income for the Council as at 31^st March 2026 (and 2025 for comparison).  The figures showed an increase in income billed in the year for Business Rates, Council Tax, and housing rents (as would be expected with an annual increase usually applied to these sources of income).

The small reduction in income from housing benefit overpayments was good news (less claimants had received too much benefit, resulting in less income to reclaim).  The decrease in the sundry debtor income was due mainly to the reduction in the Dragonfly Companies’ invoices raised in Quarter 4 2025/26 (staff and services were brought into the Council).

Table 2 of the report detailed the level of Council Tax debt as at 31^st March 2026 (and 2025 for comparison).  The figures showed a decrease for all income sources apart from Council Tax (individuals were still struggling to pay, depending on their individual circumstances – as always, payment plans had been agreed to help debtors not get into Council tax debt if possible).

The current levels of Council Tax  debt were at their highest in recent years.

Table 3 of the report detailed the provision for impairment for each class of debtor at 31^st March 2026 for the previous 2 financial years – the Council had been able to reduce the impairment provision for all but Council Tax in 2025/26 (the reductions would be transferred to the Council’s revenue accounts as part of calculating the outturn).

Table 4 of the report detailed for 2025/26 the movement since the previous financial year in the value of each source of income, the amount that was outstanding as debt, and the impairment allowance which related to that source of income – in 2025/26 the Council had raised £0.103m (net) more in income, debts had decreased £0.905m, and the impairment allowances reduced £0.418m (net).

Table 5 of the report detailed the value of bad debts written off over 2025/26 – it was noted that in all cases every attempt was made to collect the outstanding debt before any write-off was proposed.

Compared to 2024/25, the Council had written off £0.101m more in 2025/26 – mainly for Council Tax debt and sundry debtors.

A Member expressed concern on the provision of warning letters to residents regarding debts – it was unknown if a limited lack of prior warning was down to Council systems or Royal Mail’s ongoing performance issues in delivering letters, but material evidence was on hand to prove the lack of prior warning.  The Strategic Director of Finance and Section 151 Officer informed the Council’s systems generated all tasks automatically and that it was unknown if there were any issues present.

However, it was stated The Arc, Clowne’s postcode appeared to have issues as did other postal areas within the District.  A Member concurred, noting Council agendas were not being delivered even before meetings (a Planning Committee agenda, sent by 1^st Class Stamp, was dated 26^th June 2026 but was not received until 14^th July 2026 – it was recommended Members inform the Governance and Civic Team if they experienced the same issues).

It was agreed the lack of prior warning letters being sent could be discussed further after the meeting.

A Member noted good work had been achieved in 2025/26, with £103,000 additional income raised, arrears decreasing by £905,134, and the impairment allowance being reduced by £417,563.

Moved by Councillor Duncan McGregor and seconded by Councillor Janet Tait

RESOLVED that Finance and Corporate Overview Scrutiny Committee note the report concerning the Council’s Corporate Debt as at 31^st March 2026.