Debt ridden councils - who would have thought it would end like this?

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SirGalahad

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www.bbc.co.uk

Councils in crisis: Town Hall debt levels staggering, MPs warn

The Public Accounts Committee warns of an "extreme and long-lasting effect" on public services.
www.bbc.co.uk

Councils in crisis: Town Hall debt levels staggering, MPs warn​


The debt mountain at UK councils has reached staggering levels, posing a risk to local services, the Public Accounts Committee has said.
BBC analysis shows UK councils owe a combined £97.8bn to lenders, equivalent to around £1,400 per person.
Committee chair Meg Hillier warned of an "extreme and long-lasting effect" if more councils go bust.

Council leaders say years of under-funding have forced them to invest in commercial ventures.

The 2012 report - 50 ways to save: Examples of sensible savings in local government, signed by then Communities secretary Eric Pickles, encouraged town hall chiefs to pursue investments in order to stave off cuts.

Most of the borrowing for investment comes from the Public Works Loan Board (PWLB), an arm of the Treasury, which uses public money to hand out long-term loans at a low rate of interest.
Some councils have millions of pounds worth of debt related to a legislation change in 2012 that allowed them to effectively buy out the social housing stock in their area.
But it is commercial investments, assets bought solely for the purpose of returning an income, that have proved the most controversial use of the loan money.
Jonathan Carr West, chief executive of the Local Government Information Unit (LGiU), said such investments were not always "reckless" in intention.
"Many people have accused councils of gambling with public money," he said.
"It's certainly true we've seen some high-profile failures, the most obvious being Woking.
 
It seems in broken Britain the only game in Town is debt, great for the bankers.
 
Only £97.8bn in debt?

'Tis nothing...

"Brexit is set to leave Britain’s economy £311bn worse off by the middle of the next decade, a damning new report by top economists has found"

"The scathing study by Cambridge Econometrics found that the decision to leave the EU had already cost the UK £140bn"
 
gant said:
What are they doing in Germany they seem to be up sh*t creek.
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They're just adjusting to the energy problem and finding other markets for their goods given that broken britain can't afford to pay the going rate...

Thing is they have an open market of 30 other nations to turn to...

Unlike britain - the 'sick man of Europe' yet again!
 
ellal said:
They're just adjusting to the energy problem and finding other markets for their goods given that broken britain can't afford to pay the going rate...

Thing is they have an open market of 30 other nations to turn to...

Unlike britain - the 'sick man of Europe' yet again!
Click to expand...
Bit of a bummer though when you have so many poor EU countries hanging onto your coat tails.
 
They need to stop getting involved in things that do not concern them, in Exeter they have blocked off so many streets to traffic, the residents don't
want it businesses don't want it but they pig headedly plough on, it has now forced traffic onto other roads and made getting through the city a nightmate, so people are avoiding going in and bussineses are suffering, its cost thousands to impliment, its things like this iw where a lot of money is wasted.
 
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