Herts County Council owed over £100m in debt as councillor slams 'bureaucratic system'

At the beginning of the 2025/26 financial year, in April, data shows that the council was owed £75.4m in outstanding debts. But by the end of September, that level had increased by £24.7m, to £100.1m. And of that £100.1m, almost half – around £47m – was reported to be a ‘debt over 92 days’.

The debt levels were highlighted at the latest meeting of the council’s resources and performance cabinet panel, as part of a review of the budget over the past six months. And outlining the latest position, a report presented to councillors said: “The total amount of debt held by the council at the end of September 2025 is just over £100m.

“Since the start of the financial year, invoices of £282m have been raised, £1m written off, and £256m collected.

“This has led to an increase in debt of £24.7m; however, £22.4m of this increase is held with health partners and has only recently been invoiced and is not yet due. Aged debt over nine months old has increased by £6m over the six-month period.”

In total, over the six-month period, between April and September, it was reported that the county council had invoiced for £281.7m and collected £256.1m. And it had, according to the report, recorded a collection rate of just under 91% – with £1m written off.

At the meeting, councillors put the greatest focus on the NHS, for which the council provides some services. According to the data presented to councillors, at the start of the financial year, the NHS owed the council £13.2m.

Since then, the council has invoiced for £199.1m and collected £176.1m. A total of £36.2m is outstanding, as of September, although at least £22.4m of that was not yet due for payment.

Nevertheless, deputy executive member for resources and performance, Cllr Tim Williams, said that the NHS could be bureaucratic. And he pointed to the need to get money into the council’s account, rather than remaining in others.

“The NHS, I think I can be fair to describe this, is a very bureaucratic organisation,” he said. “There’s no doubt about that – and yet we have to provide the service for the individual on behalf of the NHS.

“And, being that bureaucratic service, the purchase orders are not raised as quickly as we would like. It’s the purchase order that needs to be put on the invoice for the payment to be made, through that bureaucratic system. So […] even within our organisation, we need to be aware of the bureaucratic process and get those purchase orders to be put on those invoices to be paid quickly.

“And, yes, we need to raise awareness throughout the organisation to get the money into our account rather than sitting in the other person’s account. And that’s crucial for the organisation.”

Following the meeting, a spokesperson for the Herts and West Essex ICB stressed that at the end of September, 99% of ICB invoices had been paid within 30 days. And they pointed to the council’s own report that showed that many of the NHS invoices were not yet due for payment.

“The ICB follows the Better Payment Practice Code (BPPC), which requires all NHS organisations to pay 95% of invoices within 30 working days of receiving a valid invoice,” said the spokesperson. “We are responsible for ensuring that invoices are checked and verified before payments are made.

“At the end of September 2025, our ICB reported that 99% of invoices received were paid within 30 days, both in terms of value and volume. On some occasions, payments are held while supporting information is requested.

“We work closely with Hertfordshire County Council, and an established finance-to-finance working group between the ICB and HCC reviews any outstanding invoices and works collaboratively to ensure they are checked and paid promptly.

“When an organisation such as Hertfordshire County Council (HCC) bills on a monthly basis, these invoices can show as debts when services have yet to be received, or the invoice payable date has not yet been reached.”