London Borough of Enfield has appointed ICT supplier Agilisys to collect council tax debt previously considered uncollectable.
The council says that it already collects 98% of council tax it is owed, putting it in the top ten performing boroughs for tax collection.
Agilisys will focus on debts which have previously been returned to the council by debt enforcement agencies as uncollectable. The firm will be paid by results and earn a proportion of the income collected.
Agilisys will undertake all the recovery work but, unlike if the council sold the debt, under this scheme the council will still maintain control of the collection process and can stop further action such as prosecutions if necessary.
Councillor Andrew Stafford, cabinet member for finance said: “Agilisys is an established company who will use fair recovery methods and who will be closely monitored by the council.”
The company claims that it has already achieved an uplift of council tax collections of 1.2% in another London Borough.
In February, Enfield councillors voted in favour of extending the council’s current ICT support services contract with provider Serco after officers renegotiated the scope of the deal.