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

Key Worker - Young Carers

Essex County Council
Up to £28621.00 per annum
Key Worker - Young CarersPermanent, Full Time£28,621 per annumLocation
Recuriter: Essex County Council

Head of Service - Highways and Transportation

North East Lincolnshire Council
£77,899
We are seeking an exceptional leader to take on the role of Head of Service – Highways & Transportation North East Lincolnshire
Recuriter: North East Lincolnshire Council

Director of Education

Birmingham City Council
£135,398 to £175,519 (3 days per week on site)
Leading Collaboration. Strengthening Trust. Improving Outcomes Birmingham, West Midlands
Recuriter: Birmingham City Council

Executive Director of Prosperity and Place

East Riding of Yorkshire Council
£148,775 - £159,480
We are seeking an exceptional Executive Director of Prosperity and Place East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Social Worker

Durham County Council
Grade 9 £35,412 - £39,152(Pre-Progression) / Grade 11 £40,777 - £45,091(Post-Progression)
This is an exciting opportunity to join the Next Steps Team in Durham, a developing and ambitious service that prepares young people in care for indep Durham
Recuriter: Durham County Council
Linkedin Banner