SKDC writes off more than £108,000 in unpaid business rates
Unpaid business rates exceeding £100,000 have been written off by South Kesteven District Council as they are "uncollectable".
They include £35,229.06 from the New Era Italian and Continental Restaurant of Westgate, Grantham - a debt which was blamed on changes to its business rates.
A council report said the company initially had a manageable liability based upon a rateable value entitling it to small business rate relief, which was paid by direct debit without any apparent issues.
It continued: “Subsequent retrospective amendments by the Valuation Office Agency (going back to April 2017) saw the rateable value more than treble, which resulted in a backdated liability.
“Whilst a liability order was obtained before Lincolnshire Magistrates’ Court on March 21, 2018, officers from the revenues team worked with company directors to ensure the continuance of trade whilst they appealed the revised assessment. An interim payment arrangement was agreed in the meantime.
“The company directors decided not to pursue this appeal and instead they vacated the property and ceased to trade. With no assets and no money to pay the debt it is considered irrecoverable.”
Genus (UK) Ltd of the Isaac Newton Shopping Centre owed the council £43,112.46.
A council report said Genus - which owns women's clothing store Select in the centre - had proposed a company voluntary arrangement (CVA) which was approved by 75 per cent of its creditors, which made “this debt irrecoverable”.
A third business, the Ashley PaulPub Co Ltd, of Baston, owed SKDC £30,285.24.