Dorset Council sees debts fall by paying off loans
The local authority's seen their external borrowing drop by £39 million
Dorset Council's external borrowing debts have dropped by £39 million during this financial year (2022 - 23).
It's partly due to some capital projects being delayed, and through the authority paying off two loans, totalling £12.6 million.
A report to the audit committee said they're also using 'internal borrowing' to help reduce the need to get money in from outside sources.
Overall, the authority says its 2021-22 requirement for borrowing went up by £10 million to £345 million at the end of March 2022.
The pandemic led to some capital projects in Dorset being pushed back, due to supply issues and labour shortages, coupled with extra safety restrictions.
It is thought that some planned schemes this year will not start, with Council departments asked to only begin one or two projects which stand a chance of being completed in time.
Treasury and investments manager for the council, David Wilkes, said that careful monitoring remains a high priority, given the fluctuations in global markets:
“The council has borrowed and invested substantial sums of money and is therefore exposed to financial risks including the loss of invested funds and the revenue effect of changing interest rates. The successful identification, monitoring and control of risk remains central to the Council’s treasury management strategy.”