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Thousands and thousands of kilos of unpaid council tax debt has been written off by an authority, it has been revealed.
A Liverpool Metropolis Council report mentioned about £42m of money owed, which was principally uncollected council tax courting again to 1997, was now “clearly irrecoverable”.
The Labour-run authority mentioned “common assessment and write-off of debt” was a “customary monetary observe”.
The council’s Liberal Democrat opposition mentioned it was a “smack within the face” to ratepayers throughout town.
A report into the native authority’s funds can be mentioned by the cupboard subsequent week, the Native Democracy Reporting Service mentioned.
Some £25m is uncollected council tax, together with cash which enforcement brokers couldn’t get well.
‘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 yr 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, yr after yr, actively searching for to settle their debt to town – in some instances repaying tens of 1000’s of kilos”.
She mentioned the £42m was “both irrecoverable” or “not financially viable to proceed to pursue”, and that writing it off would permit assets to be targeted on cash that could possibly be collected.
Lib Dem opposition chief Carl Cashman mentioned he felt the ruling Labour Get together had been “taking the folks of Liverpool for fools”.
He mentioned “Town council will make cuts of round £50m this yr, most of them affecting essentially the most weak in our metropolis.
“But Labour are writing off money owed price over £39m. This primarily implies that onerous working and typically weak Liverpool residents will undergo the implications.”
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