East Lothian Council writes off £800,000 in bad debt as businesses go bust

The biggest impact on debt recovery for the local authority was businesses going bust while owing it money and it saw the amount written off over 2024/25 in total rise to over £1.7million.

During October last year to March the council said it wrote off £812, 991 in bad debt, compared to £370,930 during the same period in the previous year.

It added to more than £962,000 written off in the first half of last year.

The amount of bad debt written off by East Lothian Council more than doubled in the last six months of the last year

The latest report revealed more than £180,000 in unpaid council tax was among the bad debt but the biggest area owed money was classed as sundries including VAT and involved £288,286.

More than £145,000 in unpaid business rates was also written off alongside £140,000 in unpaid rent.

The report, which has been lodged in the Members Library Service, said: “Across all areas, £152,679.99 was written off due to sequestration, £145,376.36 was written off due to company liquidation and £170,940.13 was written off as the debtor was deceased with no estate funds to cover the debt.”