Imagine a world where local councils are free from the crushing burden of aged debt, able to allocate resources more effectively to essential community services.
Now, picture the stark reality: recent data published in LocalGov’s Daily Bulletin revealed a staggering £48.2m in unpaid council tax bills from April 2021 – 2024. This isn’t just a number – it’s a crisis.
Despite active efforts to recover these debts, significant amounts remain outstanding, forcing local authorities to make painful cutbacks to vital services. The human cost is immense: reduced funding in schools, healthcare, and social services, with this particularly affecting the most vulnerable in our communities. It’s becoming more urgent to address this so we can prevent future harm and support better outcomes for everyone.
Finding the right support
Managing aged debt can be a complex and resource-intensive task for local authorities. With mounting bills and the need to allocate resources efficiently, outsourcing debt management emerges as a strategic solution. By partnering with professional debt management services, councils can leverage proven expertise and technologies to enhance recovery rates, optimise resource allocation, and ultimately achieve greater financial stability.
For example, Capita helped Lambeth Council generate an additional £500,000 in revenue, significantly contributing to their financial stability. This demonstrates the tangible benefits that expert debt management can bring to local authorities, ensuring more resources are available for essential community services.
Benefits of outsourcing debt management
Expertise and efficiency: Professional debt management services bring specialised knowledge and tools to efficiently pursue and recover outstanding debts.
Resource optimisation: Outsourcing allows councils to focus on core services while experts handle the complexities of debt recovery.
Improved recovery rates: With dedicated strategies and technologies, outsourcing services can significantly enhance recovery rates, reducing the financial burden on local authorities.
Addressing potential concerns
Cost: While there is an initial investment, the long-term financial benefits of improved debt recovery and resource optimisation often outweigh the costs.
Loss of control: Councils can establish clear guidelines and oversight mechanisms to ensure they retain control over the debt recovery process.
Impact on reputation: Partnering with reputable and ethical debt management services can enhance a council’s reputation by demonstrating a commitment to financial responsibility and community welfare.
Trusting an external partner: The best professional debt management partners have a proven track record and can provide references and case studies to build trust and confidence.
By leveraging the expertise of professional debt management services, local authorities can transform debt challenges into financial stability, ensuring more resources are available for essential community services.
Contact us today to discover how our tailored debt management solutions can help your council achieve financial stability:
Judith Keech
Business Development Director
Judith holds a strategic role within Capita Local Government Services, overseeing business development across Revenues and Benefits contracts. She excels in aligning strategic partnerships with operational delivery. With over 30 years of experience in local government operations and a strong Customer Services background, Judith has been pivotal in driving success and fostering strong sector relationships.
