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Another year older and deeper in debt

February 13, 2013 1:33 PM

Wiltshire Council is borrowing more and more money to finance its capital programme. A report to the WC cabinet explains that the council will borrow an additional £69.9million between now and the end of the 2015 - 16 financial year. This brings the gross borrowing figure up to £315.1million.

Money from the failed Icelandic banks in which WC had gambled £12million continues to trickle in, with £10.5million currently recovered and an expectation of another million to come, resulting in a loss on the capital of just half a million. However this doesn't take into account the interest lost over the years the saga has lasted plus the cost of the work required to get the money back - overall the debacle has cost Wiltshire taxpayers several million.

For the future Wiltshire Council is considering unconventional methods of raising cash such as issuing bonds. The costs of issuance and the necessity to maintain a good credit rating mean this isn't yet being done.

For the full treasury management report see item 10 of the cabinet agenda