Telford & Wrekin Council's debt repayment period is extended over £70 million school

The council borrowed £70 million to build the Hadley Learning Community, which opened in 2006.

It has now entered into an agreement to repay that debt, along with other loans taken out before 2007 over a longer period of time, in order to save money.

The council says that it will not have to pay more interest on the loans under the new agreement. The debt rescheduling scheme has previously been undertaken by a number of councils across the country in the wake of Government cuts.

Nigel Newman, spokesman for Telford & Wrekin Council, said: "This covers two elements of the council's debts – older debts that the council took on before 2007 together with the PFI agreement for Hadley Learning Centre and the linked community facilities.

"Essentially we are rescheduling the repayment period of the debt so that it is repaid over a longer period of time without altering any interest rates, in line with the life of the assets funded from the loans.

"Rescheduling debt repayments to match the life of the assets that have been funded from the borrowing is normal accounting practice and has been done by many other councils."

The changes were revealed in the financial management report, presented to the council's cabinet at its meeting on January 7.

In the report it said that the revenue benefit from debt rescheduling would be within budget by £4.015m at the end of the year.

The changes to debts are one of a number of efforts the council is making to save money. It has already cut £80 million from its budget since 2010 and the government's Autumn Statement and a further £30 million will need to be cut over the next three years.

Libraries, markets, youth clubs and community centres face the axe in Telford as part of council cost-cutting measures.

Earlier this month, the council revealed that job losses were "inevitable" as it attempts to slash spending.