Monday, 4 January 2010

Tories plan to increase Cornwall Council debt by £150 million.

Remember a few weeks ago when the Conservatives made a big hoo-hah about the level of debt held by Cornwall Council? Now it appears that they are proposing to increase that debt level by £150 million over the next four years (around 30%).

Council debt is like a mortgage - the authority borrows in order to buy buildings or finance services over the long term. They know that they have the income to service the debt but want the benefits now rather than having to save up the full cost of what they want.

But those debt levels have to be reasonable. It was therefore right and proper that there was some concern raised about whether the Council's debt level of £500 million was too high. Leading the charge that this was scandalous were the Conservatives.

Now it appears that those same Conservatives are planning on borrowing an additional £150 million over the next four years. By the end of that period, council debt will be £1238 for every man, woman and child in the county.

2 comments:

Jim said...

Alex - when are you going to comment on the Tories' dismantling of the localism agenda that was the central plank of the raison d'etre for the Unitary Authority? Or indeed the complete chaos the Council is in?

Alex Folkes said...

Be fair, I think I comment quite frequently on the chaos the Council is in! And I covered the hiatus in the localism agenda in several posts and will not doubt return to that theme.