Wiltshire Council leader addresses debt concerns
It comes amid fears of local authorities across the UK going bust
Last updated 16th Jan 2024
There's growing fears that local councils across the country good go under as a result of excessive borrowing during the past decade.
And with a total national debt of £97.8 billion, according to the Public Accounts Committee, there are fears there will be more high-profile failures in the coming months.
But Wiltshire Council leader Richard Clewer has told Greatest Hits Radio that, despite the authority amassing £396 million of debt, not all debt is bad.
"Council's build up debt for all sorts of reasons and some of them a very good," Cllr Clewer said.
He said the he has "absolutely no problem" with the mortgages on council housings, saying: "We know that there's a need, we know we need to provide as much council housing as we can.
"And borrowing to do that, I think, is the kind of role the council should be taking."
Cllr Clewer told us that other authorities have accrued debt for other reasons, such as through the purchase of commercial property, but are now unable to pay the interest on that debt.
He said Wiltshire Council's debts have been built up over many years and primarily design around the delivery of capital projects.
Cllr Clewer said its important for authorities to stick to their business plans and not get carried away:
"It's very easy to look at council debt and think it's terrible.
"When you're looking at debt that isn't really focussed on the business plan of a council, on what it is we are here to deliver, that's where things go wrong.
"That is not what Wiltshire have done or will do in the future."
Strong financial position means investment is possible
The Council leader was able to reassure us that critical, local services won't be impacted, but that he would, in fact, be able to invest more in things such as the highways.
And ahead of the council announcing it's budget plans for the medium term financial strategy (MTFS) for the next two to three years, there are no cuts to public funding that are expected.
"There a no cuts that the public should notice over the next two years.
"In fact, our financial position is so strong, we really are unique as a council in this regard, I'm about to announce we are going to be spending an extra million pounds a year."
Cllr Clewer told us this would tackle gully and grip cleaning to help the water run-off from our roads, as well as reactive and preventative work on potholes to ensure the county's roads are in top condition.