Sundry Debt Recovery

Given the reduction in Central Government grants to local authorities of 49.1% between 2010-11 and 2017-18, and the recent National Audit Office prediction in March 2018 that 10% of councils will have used the entirety of their cash reserves within the next three years, it is essential that local government maximise revenue via the collection of monies due.

Ian Ferguson, Head of Revenues and Benefits at Durham County Council, identified at the IRRV conference in 2015 that the spotlight should be directed to other sources of council income rather than just council tax and business rates.

Revenue from miscellaneous income accounted for £10.2bn in England and Wales dating back to 2011-2012.

Given the gap in central government funding, councils are having to be ever more innovative in developing revenue streams from businesses and individuals alike in an environment of cutbacks and reduced staffing levels to recover arrears.

Many debt recovery and enforcement companies focus on the recovery of council tax and business rates as rewards are far greater than those available from sundry debt recovery. Having provided commercial debt recovery services for many years, DSL is well placed to help local authorities bolster falling revenues.

DSL’s recent pilot project success with the London Borough of Southwark backs up this opinion with a case clearance rate of over 50%, for sundry debt dating back 6 years.

‘We have been impressed with the results achieved by DSL, diligently tracing debtors and professionally recovering debt with the provision of excellent customer service. I have always found DSL to be a company that takes an interest in and cares about getting a result for their customer’

Dominic Cain
Director of Exchequer
London Borough of Southwark

Sundry and historical debt covers a wide spectrum which may date back over several years.

Including, but not limited to:

• • Nursing home over-payments

• • Council staff salary over-payments

• • Alcohol licencing

• • Waste management

• • Building permit and service charge arrears

• • Traffic diversion under-payments

• • Builder skip licencing

• Business licencing

In many cases, debts date back over a number of years and this is when tracing becomes a problem for local authorities. Companies usually archive records and it is often difficult to identify the department or person dealing with that particular debt.

Most local authorities have endured funding and staff reductions over the last few years and It’s hardly surprising therefore that aged sundry debt loses focus, simply because of the amount of time and effort it takes to resolve these cases.

How we can help

• • Dedicated resource solely focussed on recovering historical council debt

• • Experienced credit control and debt recovery collectors

• • An independent third party to resolve historical disputes, queries and payments that may not have been successfully reconciled

• • Successfully tracing companies, registered offices and trading locations

• • Identifying the correct department and contact relating to historical arrears

• • Providing regular progress reports

• • Using the latest technology in order to facilitate early payment

• • Reducing long-term historical collectable debt

• Providing accurate information and advising on next course of action

DSL – Working with Councils to improve revenues and services