| Councillors have agreed to update Brighton & Hove City Council’s Corporate Debt Management Policy in line with latest research evidence and best practice to make sure it can continue to collect public debt in a fair and ethical way.
The council has a responsibility to collect income and recover debt efficiently. Each year, the council collects more than £500 million in council tax, rents and other fees and charges; these help to pay for key local services for residents, as well as police and fire services. Poor collection policies and performance can therefore have a significant impact the council’s ability to deliver these services. The Corporate Debt Management Policy outlines the council’s ethical approach to income collection and debt recovery – so that it can minimise debt and maximise collection rates. For a number of years, the council’s debt management policy has included a commitment to never use enforcement agents to pursue debt from residents who have been identified as facing financial hardship – and the updated policy aims to improve on this. Councillors agreed a series of changes to the Corporate Debt Management Policy at the Cabinet meeting on Thursday 20 March. These include:
Councillor Jacob Allen, Cabinet member for Adult Social Care, Public Health and Service Transformation, said: “I’m very proud that we’ve agreed this new policy, which not only sets out our approach to collecting public funds but also reflects our commitment to fairness and social responsibility. “A key part is to prioritise residents’ welfare and support customers facing financial difficulty, and we can improve that by better understanding household circumstances, assess the ability to repay debt and identify benefit entitlements. “As well as supporting vulnerable households, early intervention will enable us to establish sustainable repayment plans. “With this policy, Brighton & Hove is setting a high bar. We are proud that this will be one of the most progressive and ethical corporate debt policies in the country – combining robust financial management with compassion and care for our community.” The council’s Corporate Debt Management Policy is reviewed annually; the new policy will be in place from 1 April.
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