Agenda item

To agree proposed changes/updates to the Corporate Debt Policy. 

Sian Warren, Deputy Chief Accountant, presented the report to members.

Members asked the following questions:

·         Councillor Christy asked how the Council intends to balance the strict debt recovery actions, while giving support to vulnerable residents who struggle to make payments and how does the Council intend to track and report on the success of the updated debt recovery approach over time? Sian Warren stated that within the policy it details all of the different places that people can go if they are vulnerable but they can contact the Council first and advice and guidance will be given and then it will be passed onto the service area manager to look at the different debt to gain an understanding of what is behind it and then signpost them to the most suitable agency who can provide them help. She explained that over the last year all of the outstanding debt has been reviewed, and steps have been taken to reduce that debt down which has proved to be successful. Sian Warren added that now work is underway to ensure that those processes are in place and are regularly reviewed monthly as well as on a quarterly basis with the service areas to ensure that the monies are being collected along with all of the income as well as raising it appropriately.

·         Councillor Booth stated that he used to work in financial services, and he was provided with guidance and advice on how to deal with vulnerable customers. He added that he does have concerns with an element of the policy as it appears that the independent advice is listed right at the back of the document and it does not indicate how you would work with those organisations. Councillor Booth stated that an agency like Step Change would be an advocate for someone who is vulnerable or in a debt situation and they could be worked with to ascertain how the customer could improve their finances and repay their debts. He expressed the view that a lot of the organisations can be worked with in order to get a debt repayment plan put in place and, in his opinion, the policy is not clear enough and does not place enough emphasis on that especially when considering particular vulnerable customers. Councillor Booth added that although it is not an exhaustive list there needs to be an assurance that people do not get pigeonholed by thinking that they are only vulnerable if they match one of the categories in the policy. He expressed the opinion that the policy needs to be made clearer so that it explains that the Council will work with independent agencies to help customers when dealing with their finance issues and concerns. Sian Warren explained that she welcomes the feedback and will revisit that element of the policy.

·         Councillor Booth referred to the section of the policy which relates to removing goods and shows a limit of £1,350 for tools, questioning where that figure has come from? He made the point that someone may work in a specialist trade and their tools could be very expensive and by removing those tools it could stop the individual from working and earning an income and, therefore, means they are unable to pay the debt back. Councillor Booth added that as a result of those actions it could result in a vicious cycle and, in his view, it needs to be a bit broader so that it states that the essential tools are not being removed.

·         Councillor Mrs French asked how quickly invoices are raised as in her experience she has had to repeatedly had to request for invoices to be raised. Sian Warren explained that it is down to the service area who are responsible for raising the invoices and once the Finance Team receive the request it is actioned within a week.

·         Councillor Mrs French stated that she sits as the Council’s representative on the Anglia Revenues Partnership and she referred to the single person’s discount for Council Tax which is abused by many people who make fraudulent claims.

·         Councillor Booth stated that he believes that there are also invoices outstanding for a Parish Council from the last set of main elections. Councillor Mrs French stated that Parish and Town Councils are not responsible for the General Election. Councillor Booth agreed but added that they are responsible for their own election or paying the invoice for it.

Members AGREED to:

·         approve the updated Council Debt Policy; and

·         delegate authority to the Chief Finance Officer to make minor amendments, in consultation with the relevant Portfolio Holder, to allow for the Policy to be updated and to take any service improvements or changes into account in the future and to consider the feedback given by members of the committee when the policy is reviewed.