Middlesbrough Council is progressing ‘thousands more’ debt cases after stepping up efforts to recover more than £67m.
The local authority said it planned to take a ‘firm but fair’ approach.
As of March, Middlesbrough was owed £36.7m in council tax, £8.3m in business rates, £15.5m in sundry debt (money owed from ‘paid for’ council services’) and £6.7m in housing benefit overpayments.
The authority acknowledged that council tax collection would ‘remain a challenge’ due to high levels of deprivation, a high benefit caseload and low levels of income across the region.
It said its debt collection approach would be supported by its welfare strategy, with residents and businesses offered welfare advice, debt management and crisis support.
However, a report says the council will exercise its legal powers where necessary.
It says: ‘Some of these powers are significant and can lead to serious consequences such as attachment to earnings, removal of goods, forcing the sale of a property or even commitment to prison all of which are powers enshrined in law.’
The council acknowledged that its increased efforts to recover debts would lead to ‘difficult conversations’ with residents and businesses, which may result in complaints and disputes.
It said some debt may not be recoverable.
