Barnsley Council may need to borrow £90m over next three years

The borrowing will ensure that sufficient cash is available to fund services, and the plans included in the Capital Strategy.

Finance bosses propose to finance the loans via long-term, fixed rate funding from banks, insurance companies and pension funds, as well as utilising bonds and borrowing from other local authorities.

The council is recommended to borrow in ‘small tranches to spread refinancing risk and to allow officers to invest the cash safely whilst it becomes required to meet the council’s spending commitments’.

A finance report states that without the loan, BMBC risks not having cash available ‘when needed to meet the council’s spending commitments, causing reputational damage, compromise service objectives and potentially lead to additional unbudgeted costs.’

The report adds: “It is anticipated that the Council will need around £90M of fixed rate borrowing over the period to 2025/26 .

“The remainder could be funded through temporary borrowing or internal cash resources.”

Barnsley Council has proposed to raise council tax by 3.9 per cent this year, which will be debated by full council next week.

Residents in a Band D property will pay an extra £64 per year, bringing their annual council tax bill to £1,705.57.

BMBC's budget proposal states that the council has had to raise council tax , due to austerity measures, and "the impact of the 10 years of significant reductions in Government funding that followed".

The council is also set to use £5.5m of its reserves to ‘further mitigate the pressures’ in areas such as social care, energy costs, school transport and waste services.