00:00Councils across the Liverpool City region have reported a £220 million increase in debt over the last financial year.
00:08According to analysis of data from the Ministry of Housing, Communities and Local Governments, UK councils owe a combined £122 billion to lenders.
00:19The data shows an increase in debt among five of the six local authorities of the Liverpool City region,
00:24with St Helens booking that trend, with its debt actually decreasing by 0.01%.
00:31Liverpool Council's debt increased by 3.33%, Nosley's increased by 9.7% and Hultons by 12%.
00:41Second highest in the region's Wirral Council, which reported a debt increase of 25.5%.
00:46However, the highest debt increase in the region was posted by Sefton Council.
00:51A spokesperson for Sefton Council said, while the council's overall debt has gone up in 2024-25,
00:58it's important to note that the figure for the previous year was only provisional.
01:02The final audited figure shows that debt actually rose by £66 million, not £81 million, as reported.
01:09Councils can borrow funds to invest in projects such as schools, leisure centres and theatres.
01:13They can also borrow to invest in property that will bring in an income over and above repayments on the debt.
01:19The money's borrowed largely from an arm of the Treasury.
01:23Many council leaders say they had no choice but to invest in order to fill the gap in income
01:27they used to receive from the government under the Revenue Support Grant.
01:32Though that grant has increased in the years since the pandemic,
01:35core spending power for local authorities is down around 18% per person compared to 2010,
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