Almost £419,000 owed to Bedford Borough Council has been written off after debtors became insolvent, died, or could not be traced.
But the authority says the losses have already been budgeted for and could still be recovered if circumstances change.
Councillor Marc Frost, the portfolio holder for finance, approved the write-off of £418,950.14 in business rates and sundry debts owed to the council by four companies and five individuals.
According to the report accompanying the executive decision, the debts are considered irrecoverable because the debtors are insolvent, dissolved companies, deceased with insufficient assets in their estates, or cannot be traced.
The largest single write-off is £81,248.23 owed by Bridges Espresso Bar Limited, linked to commercial rent and service charges at Unit 1B, Riverside Square in Bedford.
Read: Bridges Espresso Bar closes, leaving loyal customers and staff heartbroken
The company entered creditors’ voluntary liquidation in July 2025, and the council says there is little to no prospect of recovering the money, although a proof of debt claim has been submitted in the insolvency process.
Other debts approved for write-off include:
- £77,785.48 relating to residential care charges
- £75,615.76 relating to respite and residential care charges
- £42,640.77 in commercial rent and service charges at the Howard Centre
- £36,050.52 in Community Infrastructure Levy charges
- £29,409.60 owed by One Housing Group Limited trading as Baycroft
- £28,791.20 owed by District Enforcement Limited
- £22,665.35 in unpaid business rates owed by HHGL Limited, formerly Homebase Limited
Councillor Frost said: “The decision relates to a number of debts which officers have determined are no longer recoverable.
“In each case, recovery action has been pursued and the debtors are either insolvent, dissolved, deceased with insufficient estate assets, or cannot be traced.
“Writing off a debt does not mean the council has chosen not to collect it.
“It means the council is recognising the accounting reality that further recovery action is unlikely to succeed.”
“Little realistic prospect of recovery”
Cllr Frost said that many of the cases spanned several years and relate to circumstances dating back well before the write-off recommendation was brought forward.
“The report makes clear that all available recovery routes have been exhausted and that the sums involved are already provided for within the council’s bad debt provisions,” he continued.
“Some cases also highlight the importance of timely financial assessments, regular reviews of a person’s circumstances and robust debt management. Adult social care charging is governed by a national framework and individuals are assessed based on their means and ability to contribute towards the cost of their care.
“Circumstances can change over time, which is why ongoing reviews and assessments are important to ensure support remains appropriate and charges are applied correctly.
“The commercial rent and business-related debts reinforce the need for early intervention when arrears begin to emerge. Where payment difficulties become apparent, robust recovery plans should be put in place at the earliest opportunity.
“While every effort should be made to support businesses facing genuine challenges, it is not in the interests of taxpayers for debts to accumulate unchecked where there is little realistic prospect of recovery. Businesses that are no longer financially viable should not be allowed to continue operating at public expense.
“I have requested a review of open debt cases, alongside a renewed focus on stronger debt management, earlier intervention and more consistent monitoring of arrears, with the aim of reducing future write offs and protecting public funds.
“The report confirms that Bedford Borough Council continues to maintain strong collection rates, collecting 98.35 per cent of business rates due during 2025/26.
“The amount written off represents a very small proportion of the total sums billed by the council.
“The purpose of the write off is to ensure the council’s accounts accurately reflect debts that are realistically recoverable.
“Importantly, writing off a debt for accounting purposes does not remove the council’s ability to pursue recovery should circumstances change in the future, such as funds becoming available through an insolvency process.”
by John Guinn
Local Democracy Reporter
