by Alex Claridge

aclaridge@thekmgroup.co.uk

THE CITY council has written off debts of more than a quarter of a million pounds which it regards as “not collectable”.
It comes from business rates owed it for the financial year 20/11 from firms which folded or where directors cannot be traced.
Canterbury City Council’s executive met last Thursday night to formally approve writing off £265,432 owed. That is up on the 2009/10 figure of £232,453.
Cllr Peter Lee, the member for finance of the Conservative-controlled authority, told the meeting: “This is money which is not collectable so that is why we are resolving to write it off.
“This is the result of companies being dissolved, going bankrupt or people absconding. There is very little we can do about it.”
A report before the executive stated that the reasons for the rates not being collected included businesses going into liquidation, administration and insolvency.
One company was dissolved owing £50,133 while another went bankrupt owing £22,649 and a third debt of £10,729 is simply described as “irrecoverable”.
The report which went before the executive stated: “With business rates once a company ceases trading and is dissolved it is very difficult to recover any money from them.
“The directors will claim that the company has no funds or assets left from the company. We cannot go after individuals as the liability is in the company name.
“From year to year it is not possible to predict the level of write-offs.
“What is possible is to ensure that procedures are in place to deal with these accounts properly; that proper claims are made in respect of bankruptcy and liquidation cases, executors are informed of liabilities and that all tracing enquiries are made in respect of absconded cases.”
The Gazette asked the city council for details of the firms which owed it money, but did not receive a response.

See this week's Gazette for full report and reaction.