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

Team Manager

Durham County Council
Grade 14 - £50,269 - £54,495
Are you an experienced, motivated leader with a passion for improving outcomes for children and young people? We’re looking for someone who can inspir Durham
Recuriter: Durham County Council

Social Worker, Connecting Families Team

Durham County Council
Grade 9 £35,412 - £39,152 (Pre-Progression) / Grade 11 £44,075 - £48,226 (Post-Progression)
Connecting families are a team within the Children in Care service in Durham. The team support families of children who are subject to a Section 31 Ca Durham
Recuriter: Durham County Council

Human Resources Officer Advice and Support

Durham County Council
£35,412 to £39,152 p.a. (Grade 9)
  Do you want a new challenge?  An opportunity to develop your career in HR or try something new? If so, come and join our team. The post is full tim Spennymoor
Recuriter: Durham County Council

Support Officer

Durham County Council
Grade 6 £28,142 - £31,022
WHAT IS INVOLVED?   Do you want a role where your organisation skills make a real difference in local communities? Join our Newly remodelled Local Net Durham
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £4,800 (approx.) £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council
Linkedin Banner