Tamworth Borough Council has agreed to write off more than £57,000 in bad debt from Ankerside Shopping Centre after council leaders confirmed that all reasonable recovery options had been exhausted.
The decision, approved by cabinet members, involves writing off a total of £57,101.38, with the vast majority — £54,078.20 — relating to unpaid rent. Additional sums include £1,954.59 for insurance and £1,068.59 for service charges.
Background to the Debt
The council assumed full control of Ankerside Shopping Centre in November 2024. According to managing agent Knight Frank, a small number of tenants had ceased trading and accrued the debt. As these companies are no longer trading, there is no realistic prospect of recovering the monies owed.
Council leader and portfolio holder for infrastructure and local economy, Councillor Nova Arkney, stated: "We never want to see debt written off and we recognise that residents rightly expect us to do everything we can to recover money owed to the council. However, the cases before cabinet today are those where officers have exhausted all reasonable recovery options and there is no practical or cost effective route to recovering the outstanding sums."
Recovery Efforts Undertaken
Before agreeing to the write-off, the council pursued several recovery avenues. These included issuing a seven-day final demand letter, initiating Commercial Rent Arrears Recovery (CRAR) proceedings, and confiscating and selling stock to recover arrears. For high-value debts, a statutory demand can also be issued. Despite these measures, the debts remained unrecovered.
A report to council leaders explained: "The council is committed to ensuring that debt write-offs are kept to a minimum by taking all reasonable steps to collect monies due. There will be situations where the debt recovery process fails to recover some or all of the debt and will need to be considered for write off in accordance with the schemes of delegation prescribed in the corporate credit policy."
Council Policy on Write-Offs
Before writing off any debt, the council must satisfy itself that all reasonable steps have been taken to collect it and that no further recovery action is possible or practicable. Factors considered include the age, size, and type of debt, alongside any other relevant circumstances. The council views write-offs as exceptions rather than routine practice.
Councillor Arkney added: "It is of course unfortunate but it is important that we take a realistic approach and ensure that our accounts accurately reflect that position." The write-off is seen as a necessary step to maintain accurate financial records, even as the council remains committed to minimising future bad debt.
