Moray Council’s Audit and Scrutiny Committee has reviewed the recovery process of Non-Domestic Rates arrears from St Giles Shopping Centre Holdings Ltd.
An internal audit was requested by the Interim Chief Executive to examine the circumstances surrounding the arrears and recovery efforts, allowing scrutiny of the council’s actions and any procedural issues.
Non-domestic rates (NDR) are property-based taxes levied by the council, which is responsible for billing and recovery.
The amount charged is based on the rateable value set by the Assessor and the Scottish Government’s rate per pound.
The council is obliged to pursue debt recovery effectively while considering wider economic implications.
Committee Chair, Cllr Scott Lawrence, stated that the report was discussed in a private session due to the potential for external investigation.
He confirmed that the report outlined the debt recovery process, including communications between senior officers from 2022 regarding the arrears and financial concerns about the shopping centre.
The audit trail showed that senior officers acknowledged the economic and social significance of St Giles Shopping Centre and balanced this against debt recovery actions.
Extensive discussions took place in 2022 between the council and the Centre’s management company, Uplands, regarding repayment options.
A repayment plan was agreed upon but was not upheld, leading to enforcement proceedings.
These were temporarily paused to allow redevelopment discussions, but when these did not materialise, enforcement continued.
The committee agreed that concerns about the Centre’s financial stability should have been raised with the full council earlier.
Recommendations were made to improve record-keeping and early monitoring of similar cases.
Formalisation of recording processes is now in place, and Cllr Lawrence will discuss the recommendations with the incoming Chief Executive next month.
The council has committed to providing any required information should an external investigation take place.
