Scottish Daily Mail

COUNCILS SINK £22BN INTO THE RED

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DEBT-RIDDEN Scots local authoritie­s are more than £22billion in the red – the equivalent of £11,000 for every council tax payer.

The amount owed increased by 7 per cent last year, and is the highest of any UK region outside London, according to figures from the TaxPayers’ Alliance.

UK councils’ overall debt is a staggering £180billion – almost seven times the amount raised through council tax in 2012/13. Most of the debt is run up trying to pay generous public sector pensions, however 40 per cent is down to borrowing for capital spending.

Tory finance spokesman Gavin Brown said: ‘The Scottish Government needs to look at this issue very carefully, because many local authoritie­s are in very worrying financial situations.’

Glasgow, Fife and Edinburgh councils are all more than £2billion in the red.

The Western Isles has the highest longterm debt per person in the UK, at £8,174.

Jonathan Isaby, of the TaxPayers’ Alliance, said: ‘Local authoritie­s can no longer avoid tough choices by putting the bill on taxpayers’ credit card.’

Councils’ umbrella group Cosla said taking on debt had been necessary to build new homes. A spokesman added: ‘To an extent this is opportunis­tic council bashing as everyone, individual­s and business, take on debt. It’s not an unusual financial practice.’

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