Barnsley Council total debt calculated at £836million

Members of the Audit and Governance Committee were told that Barnsley Council’s debt totalled £836million at the end of the last financial year, down from £877million the previous year.

The authorised limit – as stated in the Local Government Act – for external debts is set at £1billion for local authorities.

A report from finance director Neil Copley to the committee this week said: “There was a £32.7million decrease in total external debt during the year, with the final balance as at March 31, 2023 being £651.5million (£684.2million as at 31/03/22).

“During 2022/23, the Council has followed advice from our Treasury Management Advisors, Link Group, and focused on a policy of internal and temporary borrowing, utilising cash balances and reserves in lieu of long-term external borrowing.

“This borrowing strategy is being continually reviewed to avoid incurring higher costs in the future when the authority may not be able to avoid new borrowing to finance capital expenditure and/or the refinancing of maturing debt.”

The report concluded that the Council’s total borrowing requirement by the end of the next financial year would be in the region of £144.8M, based on capital expenditure and usable reserves estimates as on March 31, this year.

This, the £144.8million, was added up by taking £55million in planned capital investments and £105million in maturing loans with almost £16million saved to repay debts.