Cheshire East Council is owed more than £7 million by residents and companies who have unpaid debts after being invoiced more than six months ago, writes Belinda Ryan.
Figures in a report to next week’s meeting of the finance sub-committee reveal the majority of this – £5.7m – relates to adult social care sundry debt.
The balance is for other sundry debt, which includes unpaid market and farm rents, or invoices which have been sent for highways damage and remain unpaid after six months.
A report to the committee states: “The value of all sundry debt over six months old as at January 16, 2023, stands at £7,061,847.
“Collection rates for other sundry debt are particularly good and have been maintained in excess of 99% over the past three years.
“Recovery of adult social care sundry debt is increasingly challenging and debt recovery levels have fallen in recent years but remain well above 90%.”
According to the report, the £5,686,149 outstanding for more than six months for adult social care relates to 5,546 unpaid or partially paid invoices.
It says a large percentage of the debt is due to lengthy legal processes restricting a customer’s ability to pay their invoices.
Processes such as probate applications and property sales result in debt accruing for several months before payment is made.
With regard to other sundry debt over six months old as at January 16, the total figure is £1,375,698 and relates to 417 unpaid or partially paid invoices.
Over 60% of this relates to highways, market rents and farm rents.
In the case of highways, the amount outstanding is £498,703.
The report states: “The primary source of this debt relates to incidents on the highway where damage has occurred and has had to be remedied by the council.
“Unpaid invoices are ultimately referred to the council’s contracted debt collector.
“Where appropriate, and with authorisation from the highways service, they are passed to our internal legal teams.”
Market rent owed for more than six months was £199,105.
The report states: “This relates to unpaid rent at Macclesfield Indoor Market.
“Historically this has not been an easy debt to collect, there have been, and still are, a number of factors that have led to this large debt.
“Uncertainty about the future of the market led to an apathy towards payment for a number of tenants.
“There is also a balance between a yearly income target from market rental income and ensuring the market is a viable asset.”
It adds this debt is now reducing.
The total debt for county farms is £165,664.
The report states: “Invoices are raised for a number of services but primarily relate to rent. Similar to the situation with markets, there is a balance sought between managing this debt, supporting farmers and maintaining the farms as viable assets.”
The matter will be discussed at Wednesday’s (March 8) meeting of the finance sub-committee which takes place at Westfields in Sandbach.
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