CLACKS COUNCIL has written off more than £1.3million in debt as part of its annual review of debtors. 

It is standard procedure for local authorities to write off a certain amount of debt each year.

However, the amount for the current year in Clacks is nearly double that of 2021-22. 

A report to councillors reported: “There has been an increase in the value of proposed debt for write-off across Council Tax, non domestic rates (NDR) and sundry debt both in number of accounts and in value.

“The reasons can be attributed to both the pandemic and the current cost of living crisis affecting both businesses and individuals.

"The economic climate has also had an impact on businesses with higher levels of debt being identified for write-off due to the business or sole trader going out of business and no longer trading.” 

More than £402,000 in Council Tax debt was dismissed for 1,045 accounts last Thursday alongside more than £206,000 in business rates (non-domestic rates) for 21 accounts.

“The proposed write off for Council Tax compared with 2021-22 has increased by 56.9 per cent,” the report to council continued. 

“Half of the Council Tax accounts being proposed for write-off are due to people being sequestrated [bankrupt]. This increase can more than likely be attributed to the cost of living crisis.” 

Likewise, there has been a 112 per cent increase in the total value of proposed business rate write-offs, and the majority have been dismissed due to liquidation or bankruptcy. 

The council also dismissed £14,489 in outstanding income for school meals going back to 2018-19. 

A breakdown of school meal debt revealed that Alloa’s Park PS has the highest total of outstanding school meal debt (£4,784) followed by Deerpark PS and Tullibody’s Abercromby PS with approximately £1,800 in debt each. 

However, sundry debts, an umbrella category for all chargeable council services, represented the largest portion of debt write-offs. The council dismissed £625,719 for more than 2,000 people on Thursday. 

The council’s chief finance officer explained that debts can be written off for a number of reasons including death, bankruptcy, small debts which are not deemed cost effective to pursue; time lapse; and other reasons. 

Council leader Ellen Forson said many of the write offs are “outwith council control” and suggested a healthy dose of empathy for community members struggling to make ends meet – particularly where school meal debt is concerned.

After some discussion, the council agreed unanimously to follow the chief finance officer’s recommendations and wrote off the £1.3m in outstanding debt.