Councils in North East owe more than £4.3bn to lenders

AVERAGE £2.5K PER RESIDENT

- By DANIEL HOLLAND

RISING levels of debt owed by North East councils now total more than £4.3bn.

New data shows that the amount owed to lenders by the seven local authorities in Northumberland, Tyne and Wear, and County Durham jumped by almost £200m in the 12 months to April 2025 and is equivalent to more than £2,500 per resident on average.

Analysis carried out by the BBC’s Shared Data Unit found that the combined debts of all councils in the UK is now £122.2bn, an increase of £7.8bn in a year.

Councils can borrow to put money into improvements to schools, leisure centres and other critical infrastructure, as well as investing in commercial ventures, such as shopping centres or energy companies, with the aim of generating income that can help make up the gap left by Government grant cuts over the last 15 years.

Experts say that debt is not inherently bad for councils and borrowing has “largely worked” at a time when authorities are grappling with escalating demand and rising costs for social care and special educational needs and disabilities services.