Stafford Borough Council has recorded its best tax collection rate since the Covid pandemic, but senior members have agreed to write off more than £200,000 in business rate debts considered irrecoverable. In total, 97.8% of council tax and 98.6% of business rates due for 2024/25 were collected by the end of March, cabinet members heard at their meeting on Thursday, 29th May.
Both collection levels are up from last year, and the business rate total was the best the authority has recorded, a report said. It added:
“The 2019/20 (council tax) collection rate was 98.4% and whilst this may be difficult to achieve in the current economic climate, it continues to be our long term aim.”
Councillor Ralph Cooke, cabinet member for resources, said the coming year was set to be more challenging however. He added:
“Many retail, hospitality and leisure businesses are facing higher bills as Government relief for these has been reduced from 75% last year to 40% this year.
“All reasonable and lawful attempts are made to recover all amounts due with regard to business rates and council tax. Regrettably, not all of the monies owed to the council can be collected despite our best endeavours.
“It should be remembered that this money, if collected, would be used for the benefit of residents of the borough. They are the victims of non-payment.”
Cabinet members agreed to write off business rate debts deemed irrecoverable at Thursday’s meeting. The debts total £214,224.38.
Councillor Cooke and Councillor Tony Pearce both highlighted legislation constraints that affected the authority’s efforts to collect outstanding debts. Councillor Pearce, cabinet member for climate action and nature recovery, said:
“I think we ought to note the high success rate in collecting both council tax and business rates – I think it is very commendable.
“We are hampered, as are other local authorities, in recovering business rates by existing legislation. Although it seems previous governments have made assurances on this, nothing seems to be happening.
“We ought to be putting pressure on Government to act on this. For them to expect us to collect all this money, but not to take action on loopholes, is extremely remiss.”
