Cumbria Councils millions of pounds in debt
New data has been released today
Westmorland and Furness Council has a total debt of nearly £200 million – figures have revealed.
Research shows the council has a total amassed debt of £192.3 million, the equivalent of £853 per resident, as of September 2023.
The authority says it has not taken out any new loans since forming on April 1 2023 and the external borrowing was carried out by the previous district councils and Cumbria County Council.
The data reveals across the UK councils owe a combined £97.8bn to lenders, equivalent to £1,141 per resident, with Cumberland Council having a total debt of £254 million.
A spokesperson for Westmorland and Furness Council said:
“Westmorland and Furness Council has not drawn down any new loans since its inception on 1 April 2023. No new borrowing is expected during the remainder of 2023/24 and after natural loan maturities the external borrowing at 31 March 2024 is forecast to reduce to £186m.
“The use of borrowing as a financing option is subject to consideration of affordability as part of project business cases. Such borrowing is monitored through ‘prudential indicators’ which ensure local authorities are prudent in their activities. The prudential indicators are published in the annual treasury management strategy.”
At Cumberland Council, the debt figure is much higher - standing at over £250 million pounds.
A spokesperson for them said;
"Cumberland Council inherited the debt from the previous district councils and Cumbria County Council. Councils can only borrow or use capital receipts to pay for capital funding such as new roads, schools and leisure centres. The debt inherited by Cumberland Council stretches back many years and was used to pay for these community infrastructure investments which provide economic and other benefits to our residents and businesses.
"Any borrowing is carried out in compliance with the prudential code and ensures that our capital expenditure and investment plans are affordable and proportionate and that all external borrowing (and other long term liabilities) are within prudent and sustainable levels.
"Our approach to borrowing also ensures that risks are proportionate."
The government say they have made available a funding package for councils worth over £64 billion for the year ahead, an above inflation increase of 6.5 per cent.
A spokesperson for the Department for Levelling Up, Housing and Communities said:
“Councils are ultimately responsible for their own finances, but we are very clear they should not put taxpayers’ money at risk by taking on excessive debt.
“The Levelling Up and Regeneration Act provides new powers for central government to step in when councils take excessive risk with borrowing and investment. We have also established the Office for Local Government to further improve accountability across the sector, which will help detect emerging risks and support councils to continue delivering key public services.”