Cabinet Member for Finance

Cabinet considered the report of the Head of Housing and the above Cabinet Member which sought Members consideration of a shared debt recovery service for the collection of unpaid council tax, business rates and parking fines.  The service would recover debts on behalf of the Borough instead of sending them to external enforcement agents.

The Cabinet Member for Finance advised that there was an error in Table 1 of the report, also included as Table 6 in Appendix I, which related to Profit and Loss.  The amended Table had been emailed to Members and was also tabled.

In response to a query from a Member, the Assistant Revenues and Benefits Manager explained that officers had studied in depth the cost implications of collecting for type of case and the volume of each type of case.  It was considered that for the first year at least it was simpler to divide the costs by three as they were likely to even out.  She advised that this could be reviewed after the first year.

Discussions ensued about reviewing the service, and Members agreed that Recommendation (3) be amended to include the following wording to reflect that the Collaboration Agreement should include a three yearly review in addition to the proposed one year initial review ‘shared debt recovery service for the collection of unpaid council tax, business rates and parking fines, this will include a review of the service after one year as part of the implementation of the service and that a three yearly review be incorporated into the proposed Collaboration Agreement’.

RESOLVED:

(1)   That, subject to the agreement of Maidstone and Tunbridge Wells Borough Councils, the creation of an in-house debt recovery service for the collection of unpaid council tax, business rates and parking fines be approved.

(2)  That the Revenues and Benefits Manager Financial and Technical be delegated authority to make the necessary implementation arrangements as set out in the report.

(3)  That the Director of Corporate Services in consultation with the Cabinet Member for Finance, be delegated authority to negotiate the terms of and enter into a collaboration agreement with Maidstone and Tunbridge Wells Borough Councils for the delivery of a shared debt recovery service for the collection of unpaid council tax, business rates and parking fines, be reviewed after one year as part of the implementation of the service and that a three yearly review be incorporated into the proposed Collaboration Agreement.