Issue - meetings

Consideration was given to a report which sought approval for an updated Charging Order and Insolvency Policy.

The report set out an updated policy for the use of Charging Orders and Insolvency to recover unpaid Council Tax, Business Rates (also known as Non-Domestic Rates), Housing Benefit Overpayments and Sundry Debt.

The report advised of:

·         Legislative changes

·         Details of the process for enforced sale

·         Details of the process for determining the vulnerability of the debtor prior to taking action.

Members noted that all cases considered for Charging Order and/or Insolvency Action were subject to approval by the Debt Recovery Panel. This was a cross-service Council panel who considered and approved enforcement action for proposed cases for Insolvency, Charging Order and Enforced Sale and consisted of representatives from The Unity Partnership Ltd, Corporate Governance, Legal, and Finance.

Any action taken to enforce sale to collect debt would be recommended by the Debt Recovery Panel and agreed with the Cabinet Member for Finance and Corporate Services before proceedings were begun. The proposed policy detailed the updated procedure for Enforced Sale.

The Cabinet was informed that the enforcement actions set out in the report would only apply to a small number of cases overall. The Council’s overarching approach to debt recovery was to encourage early payment and engagement with the debtor. It was only in cases where this approach failed and the debtor had the means to pay, that the Council would enforce payment of the debt.

Options/Alternatives considered:

Option 1 - Do nothing

Option 2 – Approve the Charging Order and Insolvency Policy

RESOLVED – That the updated Charging Order and Insolvency Policy be approved.