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CASH STRAPPED SALFORD CITY COUNCIL PAYS £17.5MILLION INTEREST ON ITS LOANS
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Star date: 8th October 2018
INTEREST PAYMENTS ON £624MILLION BORROWING COMES FROM SERVICES BUDGET This week, a full meeting of Salford Council will consider its Treasury Management Annual Report, which includes details of its huge £624million total borrowing. What the report doesn't state is the interest payable on these loans but this is contained elsewhere in the Council's Revenue Estimates for the year and gives a figure of £17.5million – which comes out of the revenue account for cash-strapped public services... Full details here...
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Every year, Salford City Council borrows bucket loads of money which, as well as going towards schools and stuff, also goes towards prestige projects like the £200million Greengate and New Bailey office blocks and the £19million RHS Garden in Worsley. This Wednesday, a full meeting of the Council is due to consider (or nod through with no debate) its Treasury Management Annual Report which shows a total debt of £624.1million. In the past, when residents have picked up the Council for spending vast amounts of money on prestige projects, councillors and mayors have responded that the money comes out of the 'capital budget' for one offs, as opposed to the 'revenue' budget which pays for services. The Salford Star has always maintained that the interest on this huge debt is paid from the revenue account, although the actual figure is usually swept under the carpet somewhere. However, the Council's Revenue Estimates for this financial year 2018-19 has a section titled Interest on Borrowing which shows total interest payments of £17.546million for 'Stock, Market Loans, Temporary Loans, Other Loans, Debt' and 'Financial Instrument'. £17.5million in interest is a sizeable chunk of the Council's total revenue spending this year of just over £200million. It's also more than the total Council cuts this year of £11.2million...
The Salford Star would have asked how much the actual interest is on the RHS Garden, New Bailey and Greengate office blocks etc but Salford Council does not respond to enquiries from this publication.
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Rayofsunshine wrote
at 15:01:48 on 13 October 2018 |
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| Bob,the regular,if you have your eye on the ball,you will know that "the promise" of new council
borrowing powers will not kick in until 2022! Are you proposing that tower blòck residents have to wait another four years before the cladding is made safe? |
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Bob the regular wrote
at 19:42:20 on 10 October 2018 |
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| In response to Paul Gerrard, the way I see it, when the new rules Tess talks about come into effect , councils can borrow as much as they like to build council houses. Most do not have land, or where they do it is not very valuable land. Salford here are very fortunate, the land they got for nothing under pathfinder is now worth a lot. Just borrowing against this alone ,they could build a house on each and every piece of land they own, because the houses would be worth a lot more than they cost to build. So come on down Deprive and show us what youre made of |
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Mary ferrer wrote
at 06:50:06 on 10 October 2018 |
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| The council have no money for front line services,yet They borrow money for a very large park in worsley.They can't look after the parks we have.Borrow money to build offices,must be some kind of investment,because there are lots of empty office space across the city. Bit worried about investments and salford labour run council they haven't a good track record. Remember the white elephant known as the stadium. And lastly,what is the problem with answering questions from Salford Star.after all they are questions WE all would like answers to. |
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Rayofsunshine wrote
at 16:23:13 on 09 October 2018 |
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| Felse,what about your darling Tory Government which has doubled the National Debt ovèr the last eight years? P.S are you going to spit your dummy
out if you fail to sècùre Tory nomination for mayor? |
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Paul Gerrard wrote
at 16:21:57 on 09 October 2018 |
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| Felsey is a potential Tory mayor with delusions, rather than vision, I think. Bob the regular raises the point about the lifting of the cap on borrowing to build social housing. I'd like to hear from Mayor Dennett or Charlie Winstanley what the implications of this are? Does Salford still have any social housing stock to borrow against? Salix and City West now administer most so is it only the Pendleton Together PFI? We need to be told.... |
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Felsey Michael J wrote
at 09:08:11 on 09 October 2018 |
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| Our Mayor vision of “sensible socialism” is impossible with such debt policies I say. It is possible to manage the big debt and turn Salford into a magnificent incubator of social profit. 6,200 in new social properties is possible within 6 years but the up change is going to take a Tory Mayor with vision. I am so ready for the job. |
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Bob the regular wrote
at 09:07:38 on 09 October 2018 |
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| I presume councils are like people and companies with regards as to how much cash they can borrow from banks. old tess has just abolished the borrowing limit on councils for building houses. if they had not borrowed the cash for the office blocks, they could have borrowed more for houses which we are told we have a need for. you could have built 2200 dwellings with that cash. Building office blocks is not what councils are geared up for. I have to hand it to Merry though, after all his failures, he still gets up and has another go at this building lark, its just that when it goes tits up, its our cash down the shitter. His apprentice Dennett seems to have the same ideas as well. |
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