SIC’s written off debt rises to nearly £330k
THE VALUE of debt written off by Shetland Islands Council (SIC) from the last financial year increased to nearly £330,000.
However, this represented only 0.32 per cent of the £103.9 million the SIC invoiced for in 2025/26, in areas such as housing rent, council tax, sales ledger invoices and non-domestic rates.
Lerwick South councillor John Fraser said given the very low percentage, the write off was “exceptional”.
A report presented to the SIC’s policy and resources committee at the end of June said a total of £329,988 was written off in 2025/26.
The figure for 2024/25 was nearly £280,000, or 0.27 per cent.
Around £135,000 was written off in non-domestic rates, roughly £120,500 in housing rent and around £40,000 in council tax and Scottish water rates.
A report to councillors explained: “The debts identified for write-off in this report relate primarily to cases where all reasonable recovery actions have been fully exhausted and the likelihood of successful recovery is considered negligible or nil.”
Speaking at the meeting, finance manager Paul Fraser said written-off debt could be five or six years old in some cases.
The decision to write off debt is “carefully considered”, he added, and a “judgement call” is made regarding whether a small debt is actually worth pursuing.
Fraser also said the term “irrecoverable” debt was perhaps misleading as all debts remain valid and will be collected if possible.
Lerwick South councillor John Fraser praised SIC staff and said it was an “exceptional effort” to achieve a relatively low level of written off debt.
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