02.07.18
Bournemouth council cites ‘careful fiscal management’ in defence of £72m loans
A major southern council has defended its borrowing of as much as £72m from the Public Works Loan Board, claiming the borrowing is appropriate compared to other areas.
In a Cabinet meeting for Bournemouth Borough Council, a Conservative-run unitary authority that represents 18 wards, members said its borrowing rates were in the lowest 10% when assessed against other unitary councils around the UK.
The authority is in the middle of a massive ongoing legal battle over a potential merger in the area. At the end of last month, the merger – which included the joining-up of Bournemouth, Christchurch and Poole into one larger authority – was greenlit by Parliament in an attempt to create savings of £100m by merging council services in the area.
Now, however, after being questioned by former councillor Roger West, Bournemouth council has claimed that the Conservatives’ “careful fiscal management” of the area over the last 12 years is the reason for its low borrowing rates from the loans board.
Cabinet member for economic growth Philip Broadbent said: “Why is our borrowing position so low compared to many other authorities?
“It is clear to me that it is the careful fiscal management of this Conservative council over the last 12 years, with a focus on management of the resources portfolio and budget planning. The figures speak for themselves.”
Other loan totals in the area include a massive £710m in Woking, £262m in Torbay (whose chief executive has recently claimed “there is no money left”), and £188m in Brighton.
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Image credit: mrtom-uk