Blackpool Council reveals latest debt write-offs

The sum, which covers the period from September 2021 to August 2022, includes £99,000 of unpaid business rates which is substantially less than previous years.

During the same time last year more than £470,000 of unpaid business rates which was owed by 22 businesses was written off.

This year’s total also include £84,000 in housing benefit overpayments, £45,000 due to bankruptcy, £17,000 of unrecoverable social care and benefits payments and £11,000 of unpaid council tax.

Provision for bad debt is made by the council as part of collection regimes and debts are only written off when there is no chance of recovering the money.

While the council says it is good practice to write off legitimate debt when there is no prospect of receiving the money, a report setting out the amount owed says “any debt written off can be reinstated at a later date should there be an unforeseen opportunity to recover part or all of the debt.”

Coun Tony Williams, leader of the Conservative opposition group on the council, said it was vital as much money as possible was collected in order to avoid service cuts.

He said: “The council has warned us all that cuts to services and potential staff reductions are more than likely to happen if the government don’t give Blackpool more funding, laying the blame firmly at the feet of those in Parliament.

“This latest debt write off clearly shows that Blackpool Council needs to raise their game in collecting unpaid debts and outstanding invoices.

“A quarter of a million pounds could fund a great deal of support to families who are struggling to cope. Our finance team do a great job but they can’t control debts created by other departments.”

Council leader Coun Lynn Williams has warned the own hall faces an overspend of around £11m on this year’s budget – with cutbacks of £35m forecast for next year.

Higher costs for looking after children in care and to provide adult social care are among the demands creating more pressure on services provided by the council.