Decision

The Leader of the Council has decided to approve the write-off of £1,215,433 of debts over £1,000 for Council Tax, Business Rates, and Council rents during 2025/26.

Analysis

outcome: Recommendations were approved to write-off a total of £1,215,433 of debts over £1,000 for the financial year 2025/26.

summary: The decision at stake is the writing-off of debts over £1,000 that are considered to be irrecoverable for Council Tax, Business Rates, and Council rents during 2025/26.

topline: The Leader of the Council has decided to approve the write-off of £1,215,433 of debts over £1,000 for Council Tax, Business Rates, and Council rents during 2025/26.

reason_contentious: This issue may be contentious as it involves financial decisions and the potential impact on the Council's budget and financial stability.

affected_stakeholders: ["Council Tax payers", "Business owners", "Council tenants"]

contentiousness_score: 5

political_party_relevance: There are no mentions or implications of political parties or political influence on the decision.

URL: https://democracy.darlington.gov.uk/ieDecisionDetails.aspx?ID=2017

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: The Leader of the Council introduced the report (previously circulated) of the Executive Director of Resources and Governance providing Members with an update on the collection of Council Tax, Business Rates and Council rents during 2025/26 and requesting that consideration be given to the writing-off of debts over £1,000 that are considered to be irrecoverable.   The submitted report stated that the collection of Council Tax, Business Rates and Council rents during 2025/26 had continued to be a significant challenge due to the current economic climate; despite the challenges, a total of £150.56M had been collected in 2025/26; and that approval was being sought to write-off a total of £1,215,433 of debts in respect of individual cases exceeding £1,000 for the financial year 2025/26, where it had become apparent that no further steps could be taken to recover the sums due.   RESOLVED - It is recommended that Cabinet:   (a)    Consider the contents of the report, and   (b)   Approve the write-off of £1,215,433 for debts over £1,000, subject to further steps for recovery being taken, wherever possible, if and when contact with the debtor is made.   REASON - The recommendations are supported by the following reasons: (a)    The collection of Council Tax, Business Rates and Council rents underpins the Council’s MTFP. (b)   The write-off of irrecoverable debts enables the Council’s accounts to be maintained in accordance with Financial Procedure Rules.  

Date of Decision: July 13, 2026