Trafford predicts £278m debt increase
0Trafford Council has warned its debt could increase as the economy becomes more uncertain.
The Manchester council set out a new financial strategy that forecast the debt it holds will increase by almost £278m between 2018/19 and 2019/20.
The council also predicted £119.5m could be borrowed the year after and 11.9m in 2020/21 with £100m needed in 2021/22.
In recent years, the council has used its own cash balances instead of borrowing to finance regeneration and take on other financial responsibilities.
The strategy had been used because interest rates were lower for cash in the bank than the interest on loans.
Among its commitments is a loan previously taken out by a borough council relating to Manchester Airport.
A report to councillors explained the strategy is likely to change: “The council may not be able to avoid new borrowing to finance capital expenditure and/or the refinancing of maturing debt.”
It added the borrowing could generate returns from assets such as property: “During 2017/18 the council introduced a programme to acquire suitable assets which will deliver significant economic development and regeneration benefits for the area and/or increase the council’s income generating capacity thereby enabling it to maintain the provision of services in future years.”
