Decision Maker: Assistant Director of Customers, Digital and ICT
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
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The YPO framework has been replaced by framework 000953 and by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.
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.
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: