Liverpool City Council says more than £40 million owed to the authority is 'clearly irrecoverable'.
A Liverpool City Council report said about £42m of debts, which was mostly uncollected council tax dating back to 1997, was now "clearly irrecoverable".
The council's Liberal Democrat opposition said it was a "smack in the face" to ratepayers across the city.A total of £14m in business rates is also expected to be forgiven, along with £1.3m in housing benefit overpayments. Deputy leader and cabinet member for finance Ruth Bennett pointed to recent recovery successes, saying the council had seen "people who have ignored letter after letter, year after year, actively seeking to settle their debt to the city - in some cases repaying tens of thousands of pounds".
Lib Dem opposition leader Carl Cashman said he felt the ruling Labour Party were "taking the people of Liverpool for fools".
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