Issue details

Debt enforcement contract award

To approve the award of the debtor enforcement contracts following a procurement exercise. The contract award is to replace the existing contracts on their expiry. 

Herefordshire council bills approximately 85,000 dwellings for council tax and approximately 8,000 businesses for business rates.

When payment is overdue the council is committed to using the most effective debt recovery methods available whilst ensuring that all debtors, taxpayers and ratepayers are treated fairly, appropriate support is identified, debtor circumstances are taken into consideration and any action that is taken is fair and open.

The continued use of debt enforcement agency services, following the exhaustion of all other debt collection opportunities and where considered appropriate, is recommended to ensure the council continues to effectively collect monies owed. This is because the council has both a legal duty and a responsibility to its citizens to ensure that income due is paid

The total amount of overdue debt sent to the council's current enforcement agent in the last twelve months was 2,983 council tax cases with an overdue balance of £2.0m and 91 business rates cases with an overdue balance of £0.4m. In addition 1,242 traffic management enforcement warrants with unpaid debt from Penalty Charge Notices totalling approximately £0.1m.

The council uses debt enforcement agencies to collect overdue debtor balances in line with the council's debt recovery policy (http://councillors.herefordshire.gov.uk/documents/s50035301/Appx%20A%20Debt%20Recovery%20Policy.pdf ).

A competitive re-procurement exercise has been completed via a YPO framework agreement (Agency Enforcement) to determine the award of a contract to provide the debt recovery enforcement service at a nil cost to the council. Enforcement Agent fees or charges are to be paid by the debtor and are to be levied in accordance with the Taking Control of Goods (Fees) Regulations 2014.

Decision type: Non-key

Decision status: Recommendations Approved

Wards affected: (All Wards);

Notice of proposed decision first published: 27/08/2019

Decision due: 14 November 2019 by Chief finance officer

Lead member: Cabinet member finance and corporate services

Lead director: Chief finance officer

Department: Corporate Support Centre

Contact: Josie Rushgrove, Head of corporate finance Email: jrushgrove@herefordshire.gov.uk Tel: 01432 261867.

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