Decision details

1.         To agree one off revenue funding of up to £1.254m (over a period of 36 months) to support a targeted reduction in Council Tax and Business Rates arrears, to be funded from the income generated via release of bad debt provision where more debt in arrears is collected, noting potential GLA contribution of up to 30% of request (to be confirmed)

2.         To note and agree the proposed approach to income recovery and enforcement.

1.         The current levels of arrears (for the Collection Fund as a whole) for Council Tax and Business Rates are significant at a combined total of £93.5m (£29.3m for Council Tax and £64.2m for Business Rates as at 31 Dec 2023). There has been a significant increase over the past 3 years due to reduced recovery action during the Covid-19 pandemic and cost of living crisis.

2.         Increasing income collection will allow for a reduction in the Council’s bad debt provisions for both Council Tax and Business Rates, providing the Council with one-off income which will vary from year to year depending on the actual amount collected, but is estimated to be £5.5m for the first 36 months of the enhanced collection scheme.

As described in the report.