South Lanarkshire Council writes off £500,000 of unpaid council tax and business rate debts

Almost £500,000 in unpaid council tax and business rates debts were recently written off by South Lanarkshire Council.

The staggering amount was scrubbed because much of the debt was deemed impossible to recover because those who owed it have died, gone bankrupt or ceased trading.

The write-offs, approved by councillors at the council’s finance and corporate resources committee on July 1, cover £163,191.27 in council tax and £331,194.75 in non-domestic rates – a combined total of £494,386.02.

The debts span different time periods, with council tax accounts dating as far back as 1993/94, while business rates debts relate to more recent years.

Council officer Steven Smith McKnight told the committee that the council tax write-offs relate mainly to prescribed debt, sequestrations and the estates of deceased individuals. The non-domestic rates debts have been written off because businesses are in liquidation, have ceased trading or have been sequestrated.

On top of those two figures, the committee also approved a further series of write-offs, including £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.

Mr Smith McKnight presented the write-offs alongside the council’s overall revenue collection performance for the financial year to May 31, 2026.

He said: “Council tax collections are broadly in line with target – we’re marginally behind by 0.05%. Non-domestic rates and sundry debt are both slightly ahead of target.”

On arrears collection, he told the committee: “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 nine per cent is running 0.2% ahead of its 98% annual target.

Sundry debt collection of 97.9% is marginally ahead of its 97.8 per cent target.

The committee also noted the council’s position under the Non-Domestic Rates Incentivisation Scheme (NDRIS), a Scottish Government initiative that allows councils to retain 50 per cent 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 the first quarter performance due to be reported to the committee in September.

Mr Smith McKnight told councillors: “Performance against the NDRIS target will be reported to committee on a quarterly basis. Buoyancy for quarter one up to June 30 cannot be reported at this stage as the relevant data is not yet available and will be reported to committee on September 30, 2026.”