South Lanarkshire Council has written off almost £500,000 in unpaid council tax and business rates debts, approved by councillors at the finance and corporate resources committee on July 1. The write-offs total £494,386.02, comprising £163,191.27 in council tax and £331,194.75 in non-domestic rates.
Reasons for Debt Write-Offs
Council officer Steven Smith McKnight explained that the debts were deemed impossible to recover because those who owed them have died, gone bankrupt, or ceased trading. Council tax accounts date back as far as 1993/94, while business rates debts relate to more recent years.
Smith McKnight told the committee that council tax write-offs relate mainly to prescribed debt, sequestrations, and estates of deceased individuals. Non-domestic rates debts have been written off because businesses are in liquidation, have ceased trading, or have been sequestrated.
Additional Write-Offs Approved
In addition to the council tax and business rates, the committee approved further write-offs: £281,465.16 in former tenant rent arrears, £33,141.70 in sundry debt, and £6,022.77 in Business Improvement District levies for Hamilton, Carluke, and Lanark.
Revenue Collection Performance
Smith McKnight presented the write-offs alongside the council's overall revenue collection performance for the financial year to May 31, 2026. He stated: "Council tax collections are broadly in line with target — we're marginally behind by 0.05 percent. Non-domestic rates and sundry debt are both slightly ahead of target."
On arrears collection, he added: "Both council tax and sundry debt are marginally behind, this early in the year, with non-domestic rates slightly ahead of target."
Council tax collection currently stands at 22.9% against an annual target of 95.6%, while non-domestic rates collection of 9% is running 0.2% ahead of its 98% annual target. Sundry debt collection of 97.9% is marginally ahead of its 97.8% target.
Non-Domestic Rates Incentivisation Scheme
The committee also noted the council's position under the Non-Domestic Rates Incentivisation Scheme (NDRIS), a Scottish Government initiative allowing councils to retain 50% of any additional rates income generated above an agreed growth target. South Lanarkshire's provisional buoyancy target for 2026/27 has been set at 0.9%, with first quarter performance due to be reported to committee in September.
Smith McKnight told councillors: "Performance against the NDRIS target will be reported to committee on a quarterly basis. Buoyancy for quarter one up to 30 June cannot be reported at this stage as the relevant data is not yet available and will be reported to committee on 30 September 2026."
