Decision details

CR/335/10/19 - Enforcement Agency services for the recovery of unpaid Council Tax and Business Rates (Non-Domestic rates) Parking debts; former tenant rent arrears; Housing Benefit overpayments; sundry debtors and commercial rents

Decision Maker: Assistant Director of Customers, Digital and ICT

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

Since 2008, the Council has used outside agencies for the collection of a number of its debts including Council Tax, Business Rates, Sundry Debts, Parking debts and Housing Benefit over payments.
The most recent contract for these services was awarded from the 25th January 2016 for a maximum period of 4 years. The contract was procured under 000587 YPO Enforcement Agency DPS Model call off framework. The contract is due to expire on the 24th January 2020.
As central funding to local government continues to reduce, it is now more important than ever to maximise income collection. In order to recover these unpaid amounts, professional enforcement services may be required, as permitted under various legislation. This knowledge and skills is outside the existing specialisms of the Council, meaning that 3rd party organisations are required in this area. By obtaining specialist Enforcement Agency firms, the Council should be able to take the required action more effectively, potentially recovering unpaid amounts or minimising future losses.
The YPO framework has been replaced by framework 000953 and by re-procuring using the framework the Council will continue to actively pursue its debts using specialist services.

Decision:

To appoint a minimum of 3 Enforcement Agent companies for the recovery of unpaid Council Tax and Business Rates (Non-Domestic Rates); Parking debts; Former Tenant Rent Arrears; Housing Benefit over payments; sundry debts and commercial rents in order to maximise income for the Council. The contract is to begin at the expiry of the existing award on the 25th January 2020 and it will be awarded for a period of 4 years under the terms of YPO Framework 000953 Enforcement Agency Services.

Alternative options considered:

The other options available were:
1. To contract under a different framework. Another framework reference 202 - 365931 through Rotherham MBC taken out in 2016 does exist. All the same suppliers are on the framework, but we would lose out on the benefits we acquire through any YPO framework.
2. To continue with no external specialist Enforcement Agent service for debt recovery. This would risk a significant potential loss of income to the Council.
3. To create specialist internal Enforcement Agents. This would require significant investment to recruit and train the Council's own staff to perform these functions. The time and cost of this investment makes it difficult to justify.
It is believed that the work required is best conducted by specialist external service providers with experience of debt recovery in the local government area.

Publication date: 21/10/2019

Date of decision: 16/10/2019

Accompanying Documents: