Fife COUNCIL has written off more than £4million owed to them in 2013-14 as bad debts.

The cash they have “no realistic hope” of recovering is from council tax, sundry debtors and non domestic rates. The total figure is down slightly from last year and less than half of the 2011-12 figure, which was £8.5m.

Les Robertson, revenue services manager, said, “The council actively pursues the collection of debt, however, debt write-off is unavoidable and occurs when individuals and businesses cannot pay their debts.” His report to last Tuesday’s executive committee shows the money outstanding is made up of £1.12m in council tax, £1.37m in debtors and £1.56m in non domestic rates.

Almost half of the total was explained as ‘sequestration/liquidation’ with more than £375,000 uncollected due to death.

Mr Robertson wrote, “Debt is pursued proactively by the council and a variety of action will have been exhausted before write-off is considered.

“Collection staff work closely with colleagues in legal services and external debt collection agencies to ensure that all options are pursued.

“Write-off will only be considered where there is no realistic hope of recovery or it is not economic to pursue further.

“Debt which has been written off will still be pursued should a debtor’s circumstances change in the future.

“This means that the fact that a debt has been written off does not necessarily mean that the collection process ends.” The net amount billed by the council for 2013-14 was £416m – made up of £185.4m in council tax, £166.9m in non domestic rates and £63.7m in sundry debtors – which means the amount written off was less than one per cent.

More than 95 per cent of council tax and non domestic rates were collected and the report said that the “council’s performance in collecting debt has in the whole improved or remained constant despite the challenges faced by the economic climate and welfare reforms”.

Mr Robertson added, “The current economic difficulties are continuing to impact on the level of debt that can be collected.

“The aim within collection of debt is to identify those customers who are deemed as can’t pay from those who, for a variety of reasons, choose not to pay.

“Support is provided to those who are genuinely struggling to pay their debts whereas a more robust process of recovery is taken against those who refuse to pay or engage.”