COLCHESTER Council is set to write off almost £100,000 in falsely claimed benefits and business rates it is owed by just four people.

The debts were accumulated by a rogue business, a failed business, a housing benefit cheat and a bankrupt fraudster who claimed council tax.

In total, the council is owed £98,237.

The decision has been criticised by opposition Conservative councillors who say the council should pursue taxpayers’ money.

Dennis Willetts, Conservative group leader, said: “At a time when the council has tried to close most public conveniences to save £12,000, this lame duck administration is happy to write off nearly £100,000 of council tax and business rates because it has failed to create effective collection strategies over the past seven years in office.

“Once again, it’s ordinary families who suffer as their own council tax payments support this waste.”

The decision to write off the debt is public, but a report detailing which businesses and individuals are responsible for the debt and howmuch each case is worth is being kept secret.

Ben Locker, Conservative group spokesman on open government, said: “Failing to collect nearly £100,000 is bad enough, but keeping the source of these debts secret is shameful.

“It makes youwonder what else this tired administration has to hide.”

The Conservatives will request a further examination of the issue.

Paul Smith, councillor responsible for finance and prospective leader of the council, said: “A variety of different cases which have led to the problem.

“The first is a business which opened and never paid any business rates and probably never intended to.

“The second was a long-established business which had been paying for many years, but its payments became sporadic and it unfortunately failed, owing some money to the council.”

Mr Smith said in the housing benefit case, the debt could still be recovered in years to come because it has been secured to the property where the claimant lives.

For the money to be released, the home will have to be sold and the council has no power to compel the owner to sell.

In the council tax benefit case, there is no chance of reclaiming the money.

Mr Smith said the council collects about £80million in council tax and business rates each year.

The council regularly writes off a small amount of debt each year, but it is rare for the figure to be as high as £100,000.