Agenda item

The Director of Finance submitted a report to approve the Corporate Debt Management Policy.

 

The report required approval as the introduction of a Corporate Debt Management policy is part of the Council’s strategic direction, and as such requires single executive approval.

 

The report outlined that the purpose of this new policy was to provide clear guidance on the recording, reporting, recovering and monitoring of the Council’s debt and income.

 

All service areas must follow this policy to allow the Council to maximise the collection of debts and income by using a co-ordinated approach but having due regard to the customer’s ability to pay.

 

Whilst some parts of income recovery are governed by particular legislative requirements such as Council Tax, Business Rates, Adult Social Care Debt, etc, wherever possible the overall principle of recovering debt / income should be efficient and effective, always giving consideration to the financial impact on the Council when debt and income was not recovered.

 

This policy would underpin any specific recovery strategies and will be applied across all directorates.

 

This new policy will also support cross directorate cash collection / payment problem solutions where a shared customer base exists.  It is envisaged that the approach will support residents and businesses that have multiple debts, and should be considered at a corporate level to reduce multiple officer engagements across directorates with the same resident and or business base.

 

The Council has a statutory duty to collect outstanding debt and does so in accordance with the Local Government Finance Act 1992 and the Council’s Financial Procedure rules. The introduction of this policy is to support this duty but also to provide that collection approach / methods are consistent, fair and efficient across all of its services.

 

This policy was the 2^nd of 4 policies being developed which bring together a significant number of supporting arrangements which will not only compliment but enhance the Council’s social regeneration plans.

 

·         Vulnerability Policy (Executive Approval on 16.6.2020)

·         Corporate Debt Management Policy – (Seeking Approval)

·         Corporate Welfare Policy – (In Design)

·         Corporate Write Off Policy – (In Design).

 

This policy also links to the Council’s Stop the Knock approach, where the aim is to reduce the number of cases sent to the external enforcement agent by improving debt collection practices.

 

This policy also sought to address other matters such as credits and how these will be offset with other debts across the Council, pre contractual checks to ensure any monies owed to the Council are addressed, and the insertion of a new contractual provision which allows sums owed to the Council to be offset.

 

 

Options

Other potential decisions and why these have not been recommended

 

No other reasons required.

 

ORDERED

That the Corporate Debt Management Policy be approved.

 

REASON

 

The decision was supported by the following reason:

 

1.    This policy would allow Middlesbrough Council to provide a comprehensive approach that provides for flexibility based on the customer needs rather than applying a standardised offering that prevents effective collection methods. 

 

2.    It also highlights the Council’s commitment to supporting the Town’s most vulnerable when collecting debt / income