Issue - meetings

The Leader’s Portfolio

To consider report FIN/610 of the Chief Executive and Chief Accountant (s151 officer), which was referred to the meeting of the Overview and Scrutiny Commission on 30 January 2023.

RESOLVED

That the Cabinet:

a)         approves the Corporate Debt Policy (Appendix A of report FIN/610) for adoption and subsequent publication.

b)         delegates authority to the Head of Corporate Finance, in consultation with the Leader, to review and make amendments to the Corporate Debt Policy as further changes to legislation and statutory guidance are introduced.

(Generic Delegation 7 will be used to enact this recommendation).

Reasons for the Recommendations

The council has a duty to ensure that it collects income and recovers debt efficiently and effectively to ensure it fulfils its financial responsibilities to its citizens and maximises its capacity to provide local services.

The Council must meet legislative requirements in respect of income collection and has an obligation to collect on behalf of other organisations.

The Leader presented report FIN/610 of the Chief Executive and Chief Accountant (s151 officer). The report proposes the adoption of a new Corporate Debt Policy. The policy details that the Council had a duty to ensure that it collects income and recovers debt efficiently and effectively to ensure it fulfils its financial responsibilities to its citizens and maximises its capacity to provide local services.  It also details that the Council where possible would be proactively trying to prevent residents’ Council relate debts arising or escalating. The Cabinet were informed to enable the Council to be able to this it uses a new software system called “Lateral” to enable it to have a shared view of debt across the Council. This system identifies people that were vulnerable and be able to point them to get debt advice to help avoid them getting into further debt.

Councillor T Belben presented the Overview and Scrutiny Commission’s comments on the report OSC/308 to the Cabinet following consideration of the matter at its meeting on 30 January 2023, which included their support for proposed centralised approach to debt management and the support the Council was proposing to provide to its residents.

Councillors S Mullins, and Jhans spoke as part of the discussion and in support of the report.

RESOLVED

That the Cabinet:

a)         approves the Corporate Debt Policy (Appendix A of report FIN/610) for adoption and subsequent publication.

b)         delegates authority to the Head of Corporate Finance, in consultation with the Leader, to review and make amendments to the Corporate Debt Policy as further changes to legislation and statutory guidance are introduced.

(Generic Delegation 7 will be used to enact this recommendation).

Reasons for the Recommendations

The council has a duty to ensure that it collects income and recovers debt efficiently and effectively to ensure it fulfils its financial responsibilities to its citizens and maximises its capacity to provide local services.

The Council must meet legislative requirements in respect of income collection and has an obligation to collect on behalf of other organisations.

To consider report FIN/610 of the Chief Executive and Chief Accountant (s151 officer).

The Commission considered report FIN/610 along with Appendix A and Appendix B with the Leader of the Council, Chief Accountant (s151 officer) and Accounts Receivable Manager.  A review was carried out in 2022 and a new Corporate Debt Policy had been drafted to meet the Council’s requirements.

During the discussion, Councillors made the following comments:

·         Acknowledgement that the Council took its responsibilities to protect the public purse seriously and was committed to the highest standards of accountability in order to ensure the proper use of its approach to income collection and debt recovery.

·         Recognition that the recent review of Council’s processes in 2022 had resulted in a Corporate Debt Policy being compiled to meet the Council’s requirements.  The Council had recently rolled out “Lateral” software to enable it to have a shared view of debt across the Council. The system identified people that were vulnerable and was able to point them to get debt advice to help avoid getting into further debt. 

·         There was support that staff had regular training on debt recovery and how to support people in debt such as referring them to Breathing Space or Access Crawley.

·         Acknowledgement that where possible, the Council aimed to proactively prevent debt arising or escalating and would seek to keep citizens informed so that they were fully aware of their obligations to the council and were in a position to make good decisions that avoid additional costs and pressures. However, ultimately the council would, where appropriate, escalate recovery actions to recover hard to collect debt. When doing so, it would maintain its fairness principles while applying the correct legal options.

·         It was noted that in collecting income and recovering debt, the council was committed to adhering to good practice. This included the recognition of fairness principles and that collection arrangements should be manageable and sustainable in the context of both the council’s duty to collect and a household’s individual circumstances.

·         Recognition that there were multiple payment methods available for individuals which was reassuring that circumstances were assessed.

·         Confirmation obtained as to the situations whereby a debt was irrecoverable.  After 6 years the debt is statute-barred and cannot be collected.

RESOLVED

That the Commission noted the report and requested that the views expressed during the debate, were fed back to the Cabinet through the Commission’s Comment sheet.