Council writes off £1.6 million unrecoverable debt

A TOTAL of £1,644,192 has been written off by Warrington Borough Council as unrecoverable debt.
The debt is made up of £27,494.93 housing benefit over payments and £245,395.35 in miscellaneous income for the period covering April-September this year and £1,371,301.76 in council tax debts for the period of 2004-2009 as part of a review of age-old council debts.
During this period more than 99 per cent of council tax was collected, equating to £344m.
In many cases debt was written off because the debtor had died or left the area with no trace.
The council’s audit and corporate governance committee will receive a report detailing the debt which has been written off on Thursday (November 19).
Writing off unrecoverable debts is used as a last option by the council when all other methods of collection have been exhausted.
As an annual income the council collects £92m in council tax, £109m in business rates, £54m in miscellaneous income and £2m in housing benefit overpayments.
Director of finance and information services Lynton Green said: “The council maintains a fantastic record of collecting a high proportion of council tax and other incomes but  it is inevitable that occasionally we have to write off some debts.
“Residents should be reassured the council takes every action available before writing off debts which it is no longer economical to pursue.”