Blackpool Council forced to cancel £1.6m of debt for failed businesses
The council writes off debt after it has pursued all avenues to try and collect it
Blackpool Council has been forced to write off almost £1.6m of debt with around half of that due to unpaid business rates.
Companies going bust including guest houses, shops and pubs make up the bulk of the 31 operators which owed almost £868,000 in business rates.
Many of the other debts relate to social care, unpaid council tax and housing benefit payments, with some debts dating back more than 10 years. In many cases the person owing the money has died leaving no estate, while others cannot be traced.
The council only writes off debt after it has pursued all avenues to try and collect it with a report setting out what is owed saying the figures relate to situations “where there is no prospect of recovery or recovery of the debt.”
But there is provision for losses in the council’s budget with director of resources Steve Thompson saying in a report setting out the debt: “It is good practice for the council to write off legitimate council tax debt, however any debt written off can be reinstated at a later date should there be an unforeseen opportunity to recover part or all of the debt.”
Debts written off this time round are – social care £164,6371; direct payments £14,820; economic development £7,510; leisure assets £6,000; housing benefit overpayment £139,537; council tax debt £385,071 and business rates debt £867,968.
The council regularly reports on debts it has written off, with £500,000 of business rates written off in January 2021, and £250,000 worth of debt written off in December 2022.
Here are the businesses listed as owing business rates which have now been written off –
Vkuznec Limited £90,976 pub
LJA Properties LLP £66,201 two shops
Individual – name not disclosed due to data protection, £65,700 guest house
The Ratepayer £48,832 pub
Ebor Industrial Limited £48,551 pub
Pop Up Shops Limited £40,524 shop
St-Samuel Ltd £37,690 guest house
Truman Enterprise Limited £36,015 shop
Lunar Automotive Limited £34,682 warehouse
Grand Coastal Hotels Ltd £29,300 hotel
Dublin’s Temple Bar Limited £27,992 pub
Tahir Restaurant Limited £27,436 pub
SJ (Blackpool) Ltd £25,331 guesthouse
Ayup Sultan Trust (formerly the Trustees of Noor-a-Madina) £23,988 offices
Individual – name not disclosed due to data protection £21,276 shop
Four Counties Recovery (NW) Limited £20,956 vehicle repair workshop
DJ Suites Blackpool Ltd £19,200 hotel
Aroma Management Ltd £18,808 hotel
Instinct Fbza Limited £17,768 shop
Individual – name not disclosed due to data protection £14,702 shop
Discount Furniture Warehouse Ltd £14,454 shop
Mog Ltd £14,252 restaurant
Crystal Bar Ltd £13,983 pub
Individual – name not disclosed due to data protection £13,516 guesthouse
World Travel Lounge Retail Limited £13,477 shop
Lucas Confectionery Ltd £13,291 kiosk
Heartman Limited £12,710 shop
Heritage Hotels Blackpool Ltd £11,876 hotel
Luigi CC Ltd £11,412 shop
Daniel Johns Blackpool Ltd £10,645 hotel