Rotherham Council borrowing rises by £40m in a year

Figures from the BBC Shared Data Unit show the council’s overall borrowing stood at £677m at the end of 2024/25, up from £637m the previous year - a 6.3 per cent rise. That equates to £2,497 per resident, an increase of around £147 in twelve months.

Rob Mahon, Rotherham Council’s assistant director for financial services, said the rise was linked to major capital schemes.

He said: “The council’s increased borrowing reflects the delivery of our approved capital programme and the financing of historic debt from previous years. This includes major regeneration schemes such as Forge Island, the Markets and Libraries redevelopment, and investment in the borough’s roads, schools, and housing.

“Residents should not be concerned by the rise in borrowing. It is part of a long-term financial strategy that enables us to invest in essential infrastructure and regeneration projects across the borough, with careful planning to ensure costs are covered responsibly.

“These investments are already helping to revitalise our town centre, boost footfall, support local businesses, and contribute to the borough’s wider economic growth.”

Across the UK, council debt climbed by £7.8bn in the past year, rising to £122.2bn by April 2025 – equivalent to £1,791 per person. Experts have described the national picture as “extremely worrying”, with some authorities relying on short-term loans to cover day-to-day spending. Several, including Croydon, Birmingham and Woking, have already issued section 114 notices effectively declaring themselves bankrupt.

In South Yorkshire, Rotherham’s rise contrasts with Sheffield and Barnsley, which both managed to reduce their borrowing over the past year.