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Tens of millions of kilos of unpaid council tax debt has been written off by an authority, it has been revealed.
A Liverpool Metropolis Council report stated about £42m of money owed, which was principally uncollected council tax relationship again to 1997, was now “clearly irrecoverable”.
The Labour-run authority stated “common overview and write-off of debt” was a “normal monetary follow”.
The council’s Liberal Democrat opposition stated it was a “smack within the face” to ratepayers throughout the town.
A report into the native authority’s funds can be mentioned by the cupboard subsequent week, the Native Democracy Reporting Service stated.
Some £25m is uncollected council tax, together with cash which enforcement brokers couldn’t recuperate.
‘Not viable’
A complete of £14m in enterprise charges can be anticipated to be forgiven, together with £1.3m in housing profit overpayments.
Earlier this 12 months the council estimated it was owed about £230m in dangerous debt it by no means actually anticipated to recoup.
Deputy chief and cupboard member for finance Ruth Bennett pointed to current debt restoration successes, saying the council had seen “individuals who have ignored letter after letter, 12 months after 12 months, actively in search of to settle their debt to the town – in some circumstances repaying tens of hundreds of kilos”.
She stated the £42m was “both irrecoverable” or “not financially viable to proceed to pursue”, and that writing it off would enable sources to be targeted on cash that could possibly be collected.
Lib Dem opposition chief Carl Cashman stated he felt the ruling Labour Celebration had been “taking the folks of Liverpool for fools”.
He stated “Town council will make cuts of round £50m this 12 months, most of them affecting probably the most weak in our metropolis.
“But Labour are writing off money owed value over £39m. This primarily signifies that onerous working and generally weak Liverpool residents will endure the implications.”
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