COUNCIL TO BEGIN CHARGING INTEREST ON DEBTS- Headley

Bedford Borough Council has announced plans to begin charging interest on overdue commercial debts. This follows increasing concerns in recent months of the impact on Council finances due to delays in payment of invoices.

In line with other local authorities, the Council has to find efficiencies and savings due to significant funding cuts from central Government while also working towards a council tax freeze. Alongside these challenges, the Council is currently owed millions of pounds by other organisations that have delayed paying invoices for services the Council has provided.

Councillor Michael Headley, Portfolio Holder for Finance and Asset Management, said: "We have a duty to ensure our limited resources are being used as efficiently as possible. It is completely unacceptable for organisations to withhold or delay payment of monies that are rightfully due to the Council. We are being forced into introducing this measure to protect our own resources and to ensure that our Council Taxpayers do not subsidise other organisations.

"This is not aimed at increasing revenue, instead, we hope this measure will encourage other organisations to repay their debts more quickly and allow us to budget more accurately regarding the repayment of debts.

"While it is important that all invoices are paid promptly we will be focusing this measure on large debts only, so that small businesses are not affected.

"Local taxpayers have a right to expect we will do whatever is necessary to protect their money as we work towards a council tax freeze in 2011."