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Fylde Town Hall
Fylde Town Hall

Councillors are being asked to write off almost £100,000 of uncollectable business rate debts.

Three businesses have racked up the debt while in difficulties, and now leading councillors at Fylde Council are expected to approve plans to write off the debt.

One was a restaurant 
owing £25,941 between 2011 and 2012.

According to council papers, the owners were granted an Individual Voluntary Arrangement, which provides a formal repayment proposal to those in debt, as an alternative to bankruptcy in December last year.

That prevents the council from taking action against the company for the money it is owed.

The council was forced to send a bailiff to another company, which owed £44,261.

The cabinet’s agenda states the company had been struggling to pay, despite entering a number of payment arrangements with the council. It went into administration in May last year and no further recovery action could be taken by the council.

The council secured a Liability Order – a demand for full payment plus costs – against a company which owed £28,140 at court and entered into a number of payment arrangements to try and help the business continue trading.

While some payments were received, the company went into liquidation in April last year.

The total uncollectable debt to be written off by the Cabinet is £98,316.

Data Protection rules prevent the council from naming the businesses which owe the money.

Last week, Blackpool Council revealed it has had to write off £1.7m in uncollected business rates over the last six years from companies it could not retrieve the cash from.

The Cabinet meeting, chaired by council leader Coun David Eaves, will be held at Fylde Town Hall on St Annes Road West, St Annes, next Wednesday.