Southwark (Parliament Politics Magazine) – Southwark Council has approved the write-off of more than £659,000 in commercial rent debt after cabinet approval, easing pressure on local businesses.
The write-off of £659,432.56 for five outstanding debts held in the Commercial Property Holding Account, the Housing Revenue Account, Parks & Natural Environment, and Corporate Facilities Management was agreed by the cabinet of Southwark Council.
The council deemed the write-offs “irrecoverable” because they resulted from nonpayment of commercial rent.
Funds raised from the council’s commercially held properties can be reinvested in the Housing Revenue Account (HRA) and other services including social care and park maintenance.
John Batteson, Cabinet Member for Climate Emergency, Jobs & Business at Southwark Council, said:
“We have increased the revenue that we get from our commercial property estate over the last few years which is good because it goes back into vital services that the council has to deliver, but we do have an amount of debt that we need to take different actions on in order to collect.
Some of that is through the legal route, some of that is through payment plans and some of it is unrecoverable and that’s why this paper is coming forward.”
Cllr Batteson reassured the cabinet that the write-offs are all contained within the department debt provisions and there won’t be any costs to the council.
Cabinet members were informed by the council’s assistant director of property that the debts are part of “historical housekeeping” and have been there for “many, many years.” If they are not paid off, the council’s debt provision will be impacted.
There was a confidential cabinet meeting where each of the write-offs was explained in further detail. As far as the Local Democracy Reporting Service (LDRS) is aware, the write-off of the commercial rent debt was approved by the cabinet during the private session.
How can residents see detailed breakdown of the write-off amounts?
Write-offs are typically agreed to in formal meetings of councils or cabinet meetings, and the written reports or minutes from these meetings are available on the Southwark Council website. These reports usually categorize the write-offs, such as commercial rent arrears.
Annual audited financial statements and budget reports from Southwark Council also indicate identifications of significant write-offs as part of its accounts management and debt recovery activities. Residents may contact the council’s finance or housing department directly with questions or to discuss in person the council’s debt recovery and write-off practices.
Residents can submit FOI requests for more detailed information on specific write-offs if there is not sufficient information in the previously mentioned reports.