Council writes of hundreds of thousands in debt

At a meeting of the council's executive board this month it was agreed that a total of £466,004.66 of debt from the 2014/15 financial year would be scrapped.

This comes during a time of austerity for the council, which is trying to make savings, including sharing senior roles with neighbouring authority Malvern Hills District Council amounting to more than £100,000 worth of savings.

This financial year's debt stems from 324 occasions of unpaid council tax, amounting to £93,146.11 for the year, £332,227.29 in unpaid business rates from 56 sources and £40,631.26 from 129 sundry debtors, including housing benefit debt.

While the amount is only 0.4 per cent of the total income raised by the council each year it is more than double the amount written off in the last financial year.

In fact 2013/14 there was £220,676.23 written off, with the main difference being the amount of business rates being written off.

This rise is largely to do with a significant amount of business rates write-offs made in the first half of 2014/15.

However in comparison to earlier years the amounts do not seem so extraordinary. In 2012/13 £470,257.52 was written off, but the amount when down again to £240,979.77 in 2011/12.

Before it writes off the debt Wychavon reports that it carries out a process of writing to the debtor three time before issuing a court summons. Following this they do attempt to recoup the money via a bailiff and failing that the council makes an application to the court to punish the debtor.

Vic Allison, deputy managing director at Wychavon, said: "Like any other business managing its finances, we reluctantly have to agree to write off some debts that have proved to be uncollectable.

"The total amount of debts written off in the financial year 2014/15 is £466,004. To put this amount in perspective it is just under 0.4 per cent of the total income raised from business rates, council tax and fees and charges in the year."