Stafford council writes off 'irrecoverable' business rates worth more than £200k despite best collection rate recorded
Stafford Borough Council has recorded its best tax collection rate since the Covid pandemic – but senior members have agreed to write off more than £200,000 business rate debts considered irrecoverable.
Watch more of our videos on ShotsTV.com
and on Freeview 262 or Freely 565
In total 97.8 per cent of council tax and 98.6 per cent of business rates due for 2024/25 were collected by the end of March, cabinet members heard at their meeting on Thursday (May 29).
Both collection levels are up from last year – and the business rate total was the best the authority has recorded, a report said. It added: “The 2019/20 (council tax) collection rate was 98.4 per cent and whilst this may be difficult to achieve in the current economic climate, it continues to be our long-term aim.”
But Councillor Ralph Cooke, cabinet member for resources, said the coming year was set to be more challenging. He added: “Many retail, hospitality and leisure businesses are facing higher bills as Government relief for these has been reduced from 75 per cent last year to 40 per cent this year.
“All reasonable and lawful attempts are made to recover all amounts due with regard to business rates and council tax. Regrettably, not all of the monies owed to the council can be collected despite our best endeavours.
“It should be remembered that this money, if collected, would be used for the benefit of residents of the borough. They are the victims of non-payment.”
Cabinet members agreed to write off business rate debts deemed irrecoverable at Thursday’s meeting. The debts total £214,224.38.
Councillor Cooke and Councillor Tony Pearce both highlighted legislation constraints that affected the authority’s efforts to collect outstanding debts. Councillor Pearce, cabinet member for climate action and nature recovery, said: “I think we ought to note the high success rate in collecting both council tax and business rates – I think it is very commendable.
“We are hampered, as are other local authorities, in recovering business rates by existing legislation. Although it seems previous governments have made assurances on this, nothing seems to be happening.
“We ought to be putting pressure on Government to act on this. For them to expect us to collect all this money, but not to take action on loopholes, is extremely remiss.”
