MALVERN Hills District Council collected 98.7 per cent of council tax and nearly all the business rates owed by firms in its area last year.

This was an improvement over last year's figures when it collected 98.53 per cent of council tax and 99.42 per cent of business rates.

Jean Mann, the council's revenue and benefits manager, has praised the debt chasing staff in a report to the executive committee.

"The council in recent years has had an excellent record in the collection of council tax and the national non-domestic rate and compares favourably with other local council. The 2006/07 results are excellent," she said.

"The council staff who undertake the difficult area of debt chasing and collection are to be congratulated on their continued efforts when set against a national backdrop of increased personal indebtedness of householders and increasing numbers of companies going out of business and bankruptcies.

The report also focuses on the council's write-off policy so that time and resources are not wasted chasing unrecoverable debts.

The committee is being recommended to amend the council's write-off policy. The new policy would authorise the revenue and benefits manager to write off debts of up to £2,000, while the head of service, in consultation with the portfolio holder for revenues and benefits, can write off debts of more than £2,000.

The report said the council revisited some old debts and by using bailiffs, a national tracing agency and the treat of punishment, this produced significant repayments.