Council writes off £1.6m debt - report

Blackpool Council has been forced to write off almost £1.6m of debt with about half of that due to unpaid business rates.

Companies going into administration, including guest houses, shops and pubs, make up the bulk of the 31 operators which owed almost £868,000 to the authority.

Many of the other debts relate to social care, unpaid council tax and housing benefit payments, with some debts dating back more than 10 years, a council report has revealed.

In many cases the person owing the money has died leaving no estate, while others cannot be traced, it said.

The council only writes off debt after it has pursued all avenues to try and collect it with the report saying the figures relate to situations “where there is no prospect of recovery or recovery of the debt".

However, there is provision for losses in the council’s budget.

Director of resources Steve Thompson wrote in the report: “It is good practice for the council to write off legitimate council tax debt.

"However, 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.”

Debts written off this time around include social care at £164,6371; direct payments of £14,820; economic development costs of £7,510; leisure assets of £6,000; housing benefit overpayments of £139,537; council tax debt of £385,071 and business rates debt of £867,968.

The council regularly reports on debts it has written off, with £500,000 of business rates written off in January 2021 and £250,000 worth of debt written off in December 2022.

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