Council writes off Â£1.2m in lost rates
More than Â£1million has been written off by North Tyneside Council in business rates.
Cabinet members at the council agreed at their meeting on Monday to write off £1.2million from 13 ventures that have ceased trading or gone into liquidation.
A report to the meeting said the debt would have to be taken off the authority’s books as there are no avenues left to recover the cash from the businesses involved.
The report added that £300million in business rates was collected during the period involved, while last year the authority achieved a collection rate of 98.5 per cent and longer-term collection rates were more than 99 per cent.
The council, which offers support and advice to any struggling business, had set aside a bad debt provision for business rates.
Among the £1.275m debt written off from companies which were liquidated was £109,195 from the Rex Hotel Limited in Whitley Bay; £157,981 from Cooler Recycling Solutions Limited, on Benton Business Park; and £134,615 from Blue Buck Limited, Rotary Way, North Shields.
There was also £148,885 from Newcastle Storage Company Ltd, on North Tyne Industrial Estate in Benton; £101,660 from Cairn Duff Developments, Bellway Industrial Estate, Longbenton; £95,591 from Guardian Global Ltd, Cobalt 3.1; £120,460 from Willowhay Finance Limited, Cobalt 3.1; and £59,728 from Newcastle Business Village Ltd, North Tyne Industrial Estate – all after the companies were dissolved.
Other debts written off were: Dark Peak Trading Ltd, New York Industrial Park, £54,990; Longbenton Foods Ltd, Benton Lane, West Moor, £65,995; Mr M Wallsend, Coast Road, Wallsend, £58,576; SLP Engineering Limited, Hadrian Road, Wallsend, £71,411; and Tynebreck Limited, Kingfisher Way, Silverlink Business Park, £96,787.