Local Authority Borrowing Is On The Rise – But Cameron Says We Are Borrowing Less – What Is The Real #Truth

The latest local authority borrowing and investments statistics produced by the Department for Communities and Local Government were released on Wednesday 18 September 2013.

Key points from the latest release are:

total gross borrowing of the local government sector in the UK rose by 2.9%, from £81.8 billion to £84.2 billion in the year to the end of 2012 to 2013; of this £2.4 billion national increase, £1.5 billion was due to increased borrowing by the Greater London Authority (GLA) and Transport for London (TfL)
total local authority borrowing has increased by £22.8 billion (37%), from £61.4 billion to £84.2 billion, since March 2007; however, excluding the one-off housing revenue account (HRA) settlement in March 2012 (£8.1 billion) and the increased borrowing by the 2 big all-London authorities mentioned above (£8.6 billion), borrowing by the rest of the local authority sector has increased by only £6.1 billion (10%) from £60.0 billion to £66.1 billion over these 6 years
total investments rose 13.8% from £26.1 billion to £29.7 billion in the year to the end of 2012 to 2013; of this £3.6 billion national increase, £1.9 billion was due to increased investments by the GLA and TfL
within investments, there was a £537 million decrease in resources invested in money market funds, of which £422 million was from TfL alone; similarly, £1.6 billion of the £2.3 billion increase in other securities was from TfL
https://www.gov.uk/government/publications/local-authority-borrowing-and-investments-2012-to-2013

#acedebtnews, #gla, #local-government-association

Local Councils Are Running Low On Funds

Vince Cable & Sir Merrick Cockell

Vince Cable & Sir Merrick Cockell (Photo credit: CentreforCities)

A reader writes into respond to Merrick Cockell’s warning from last week that spending cuts will bleed councils dry. She says that the cuts are already having a crippling effect on councils, with many dipping into their reserves. Additionally, she notes that many local authorities are at risk of having no money left to tackle unexpected events such as flooding, fire or cyber crime. The reader concludes that council’s need to keep a firm grasp on long-term events.

#andrew-lansley, #david-cameron, #government, #local-government-association, #merrick-cockell, #national-pensioners-convention, #social-work, #white-paper