Thomas Bridge 19 March 2015

Scottish councils urged to better control borrowing

Scottish councillors must improve scrutiny over borrowing if local authorities are to manage their near £15bn of debt – auditors have warned.

A report from the Accounts Commission has today urged town halls to improve training and oversight of long-term borrowing, which has become a key tool for funding key services and roads.

While total debt from borrowing at Scotland’s 32 councils has remained relatively constant at £12.1bn, over half of town halls have increased borrowing levels over the past 10 years.

However total debt levels are thought to reach £14.8bn owing to the impact of Public Private Partnerships.

Auditors warned councils needed to make better use of information to highlight the long-term impact of borrowing, shed jargon in reports and ensure solid governance.

Douglas Sinclair, chair of the Accounts Commission, said: ‘This is a highly complex technical area. Councillors don't need to know every detail but they do need to know enough to ask the right questions.

‘This is a critical part of council business which requires close and effective scrutiny, particularly in times like this when budgets are so tight.’

Cllr Kevin Keenan, finance spokesman at representative body COSLA, said councils were managing their borrowing ‘prudently’ to ‘ensure investment in the vital services provided by them to local communities’.

‘Councils undertake borrowing for many reasons and the fact that they borrow to invest in infrastructure should not automatically be seen as a bad thing,’ he added.

‘Councils are operating under increasing financial pressures as funding continues to fall behind demand for local services. On top of this, it is also worth mentioning that the general economic climate in recent years has been challenging and one of the big impacts locally has been in councils' ability to use capital receipts from sales of land and property as a source of funding.’

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Corporate Development

Devon & Cornwall Police
Starts at £75,201 rising by yearly increments to a maximum of £84,534 per annum
We are welcoming applications for the role of Head of Corporate Development with Devon & Cornwall Police based at Exeter Devon
Recuriter: Devon & Cornwall Police

Payroll Project Specialist

Essex County Council
Up to £148.8800 per day
Payroll Project Specialist x2£148.88 PAYE / £193.782 Umbrella daily rate Up To 6-Month Fixed Term (with potential extension) Essex County Council - England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Business Development Officer (MaaS)

Essex County Council
£36341.0000 - £42754.0000 per annum
Senior Business Development Officer (MaaS)Fixed Term, 2-year contract with potential for extension Full Time, 37 hours per week£36,341 to £42,754 per England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Finance BP - Epping Forest District Council

Essex County Council
Up to £55307.0000 per annum
Senior Finance Business Partner - Epping Forest District CouncilFull-Time, Permanent 37 Hours per Week £55,307 + £10,000 Market Supplement Closing Dat England, Essex
Recuriter: Essex County Council

Mechanical Design Engineer

Durham County Council
Career Grade 9 to 12 (G9 £35,412 - £39,152) (G10 £38,220 - £41,771) (G11 £40,777 - £45,091) (G12 £44,075 - £48,226) per annum
The Construction Consultancy Services (CCS) team provide client-side construction consultancy services across a range of professional disciplines to d Durham
Recuriter: Durham County Council
Linkedin Banner