Council's loan to balance books comes at a big price

HALTON Council could wind up repaying nearly double what it borrows from the Government in order to stay afloat.

- BY MARK SMITH, LOCAL DEMOCRACY REPORTER

The Local Democracy Reporting Service (LDRS) reported earlier this year the council was one of 30 around the country to be granted exceptional financial support (EFS) in order to stabilise its finances.

EFS is not a bailout, but a loan from the Government's Public Works Loans Board (PWLB), which will have to be paid back over the next 20 years.

The LDRS understands the council will pay a £10 million loan back at a rate of £500k a year over 20 years. But it will also be required to pay interest on that £10m.

The PWLB’s current rate of interest is 4.5%, which on a loan of £10m equates to £450k a year in interest, totalling £9m in interest payments over the next 20 years.