Telford & Wrekin Council debt increases

The figure, from May 31 is an increase of £55.9m from 2016, but the council says it has taken advantage of low interest rates and has ensured its borrowing is "safe".

The council says it plans to keep investments short term and maximise investment returns but will review investment opportunities if they arise and also review borrowing opportunities, looking to take advantage of advantageous interest rates where appropriate.

The figures have been revealed as part of the Treasury Management 2016/17 annual report and 2017/18 update, which will go to Telford & Wrekin's audit committee on Tuesday.

In the report it says: "The borrowing strategy for 2016/17 was to borrow temporarily to take advantage of low interest rates where possible and review opportunities for new longer term borrowing as appropriate.

"The net increase in net indebtness was due to capital expenditure, including on income generating schemes such as NuPlace and the property investment portfolio as well as various highways schemes which have increased the value of council assets.

"Short term borrowing was used during the year at favourable interest rates generating a significant benefit for the council’s budget."

The council has also made a saving of £4.0m against budget, which the report says is down to "active management of borrowing and the low interest rates prevailing for the year".

It comes after the leader of the local Conservative group, Councillor Andrew Eade said that since 2011, borrowing by the council has quadrupled and debt has tripled.

In the group's alternative budget that it released in January, the Tories said they could generate £107m from the sale of assets, reducing a huge chunk of council debt.

But the council has previously said the borrowing is safe and investments in projects like the NuPlace housing scheme and the solar farm at Wheat Leasows are helping to bring in money to the council.

And it says it plans to continue investing in the borough over the next two years.

In the investment programme, set out at the start of the year, it said it intends to increase growth from commercial services run by the council, like its solar farm and NuPlace housing project.

It says it will upgrade roads, bridges and footpaths, launch borough-wide regeneration schemes, undertake a new phase of the Pride in Your Community programme and invest in building capacity in the voluntary sector.

The council is also looking to continue with its growth programme, which it says has so far seen more than 1,000 jobs created.

In the papers, it says: "2017/18 and 2018/19 will see the council continue to invest in significant regeneration projects including highways and building homes and commercial property for rent as part of the approved housing investment programme."