Blackpool Council has been forced to write off almost £1.6m of debt with around half of that due to unpaid business rates.
Companies going bust including guest houses, shops and pubs make up the bulk of the 31 operators which owed almost £868,000 in business rates.
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. In many cases the person owing the money has died leaving no estate, while others cannot be traced.
The council only writes off debt after it has pursued all avenues to try and collect it with a report setting out what is owed saying the figures relate to situations “where there is no prospect of recovery or recovery of the debt.”
But there is provision for losses in the council’s budget with director of resources Steve Thompson saying in a report setting out the debt: “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 round are – social care £164,6371; direct payments £14,820; economic development £7,510; leisure assets £6,000; housing benefit overpayment £139,537; council tax debt £385,071 and business rates debt £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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