Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: November 12, 2025

Purpose:   1.1       Under 4.23 of the financial procedure rules, the Assistant Director – Finance has the delegated authority to approve individual debt write-offs up to the value of £5,000. Individual debts in excess of £5,000 require the approval of the Cabinet in order to be written off.   1.2       This report sets out the total debts written off thus far in 2025/26 and debts individually up to the value of £5,000 that have been written off by the Assistant Director – Finance under delegated authority during 2025/26 to date.   1.3       This report recommends that the Cabinet approve the write off of individual debts in excess of £5,000 that collectively total £246,315.   1.4       Whilst the Cabinet are requested to approve write-offs amounting to £246,315, it should be noted that the financial impact to Hertsmere for its share of these write-offs is £65,813 due to other parties’ interest in the debt holding. It should also be noted that these write offs will be fully funded from the Bad Debt Provisions, which have been set up for this purpose and within which full provision has been made for these debts. As such there is no direct impact on the revenue budget.   1.5       The total debt amounts to be written off are summarised below and are detailed in section 6 of this report and confidential appendix 1 on part 2 of this agenda:-         Total debt   Hertsmere BC Share of debt Table 2 Business Rates £140,166   £56,068 Table 3 Council Tax £106,149   £9,745   Total £246,315   £65,813  

Content: RESOLVED that the Cabinet 1.     Noted the write-offs year to date for 2025/26, individually less than £5,000 and amounting to £340,899 in total, written off by the Assistant Director, Finance under delegated authority, table 2, paragraph 5.14. 2.     Approved the write-off of bad debts, individually in excess of £5,000 and amounting to £246,315 in total as summarised at paragraph 5.20, set out in section 6 and detailed in confidential appendix 1 (on part 2 of this agenda). 3.     Noted that the financial impact to Hertsmere of the write-offs in ii) above, based on its share of those bad debts, amounted to £65,813. 4.     Noted that the write-offs in i) and ii) above were to be funded from the bad debt provisions, which had been set aside for that purpose   Reasons for decision 1.     It is considered prudent financial management to ensure that debts that are no longer collectable are written off. This is so that the Financial Statements reflect the Council’s true financial position and do not overstate the expected income receivable. It was a continued recommendation of internal audit that the Council should write off debts that had been irrecoverable for a number of years with little or no prospect for recovery. 2.     The Council had taken all reasonable steps to recover the debts detailed in this report and the possibility of recovery was now considered to be extremely remote. However, if circumstances changed and the Council became able to collect these debts, then they would be written back on.   Alternative Options Considered The Cabinet could decide not to write off the debts presented in this report. However as there was little or no chance of recovery, the Council’s financial statements would show an overstated debt position.