Tamworth Council Writes Off £650,000 in Unpaid Debt as Leader Admits 'Tried Everything'
Tamworth Borough Council has written off more than £650,000 in outstanding debt over a nine-month period, with new figures revealing a sharp increase compared to the previous year. The council leader has emphasised that this action was taken only after exhausting all possible recovery efforts.
Significant Rise in Written-Off Debt
The latest data, covering the period from 1 April to 31 December 2025, shows that Tamworth Borough Council agreed to write off £651,352. This represents a substantial increase of £433,674 when measured against the same timeframe from 1 April 2024 to 31 December 2024.
Business rates constituted the largest category of written-off debt, totalling £433,940, followed by housing debt at £114,476. As a result of this write-off, total unpaid business rates have decreased from £891,509.88 to £457,569.04.
Council's Stance on Debt Recovery
Council officers determine the outstanding figure by reviewing all unpaid business rates to assess the likelihood of collection. The authority maintains that writing off debt is a last resort, taken only after every reasonable effort to recover the money has been exhausted.
Furthermore, the council is unable to pursue debt from individuals declared bankrupt, dissolved companies, statute-barred sums, or debts belonging to deceased persons who left no estate.
Breakdown of Written-Off Debt Categories
Debt has been written off across five distinct categories:
- Council tax: £39,330.97
- Business rates: £433,940.84
- Sundry income: £39,608.89
- Housing benefit overpayments: £23,995.31
- Housing: £114,476.89
Council Leader's Explanation
At a recent cabinet meeting where the write-off was sanctioned, council leader Carol Dean explained the decision. She stated: "These items come through because our officers have tried everything possible and it is now the best option to write those amounts off because there is no chance of us actually getting that money back."
The council's approach underscores the challenging financial landscape faced by local authorities, where difficult decisions must be made when debt recovery becomes impossible despite exhaustive efforts.
