• Home
  • About
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

Trafford predicts £278m debt increase

0
  • by Editor
  • in 151 News · Funding
  • — 21 Feb, 2019

Trafford 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.”

Get the Room 151 Newsletter

Room151 Conferences & Events

Share

You may also like...

  • Brunel launches emerging markets sub-fund Brunel launches emerging markets sub-fund 14 Nov, 2019
  • LEPs to get a further £25m LEPs to get a further £25m 20 Sep, 2012
  • Appeals barrier to Scottish business rate reform emerges Appeals barrier to Scottish business rate reform emerges 27 Feb, 2019
  • Councils anticipate cutting services to ‘legal minimum’ Councils anticipate cutting services to ‘legal minimum’ 9 Aug, 2018
  • Register to become a Room151 user

  • Latest tweets

    Room151 17 hours ago

    What role will climate change have on the pricing of government bonds?: Sponsored article: Kerry Duffain finds that “vulnerability and resilience to climate change” have a significant impact on the cost of government borrowing. Ardea Investment… dlvr.it/RtNKv7 pic.twitter.com/wDjT31x4Yt

    Room151 1 day ago

    ESGenius: Slashing emissions will fuel green growth for decades: Sponsored article: Velislava Dimitrova argues that a big enough investment could mean transition to a low, or no, carbon economy can become a reality. The world needs to slash carbon[...] dlvr.it/RtKZJp pic.twitter.com/cd8S3ijERl

    Room151 1 day ago

    Prudential code: “Not perfect, but its heart is in the right place”: The new Prudential Code offers revised rules for borrowing. Nikki Bishop is sceptical it will work while Gary Fielding offers his support. Nikki Bishop I have been asked to give[...] dlvr.it/RtKZFh pic.twitter.com/OriN28lXcb

    Room151 2 days ago

    Tremendous report from @MarkSandford3 citing @room_151 no fewer than six times (despite what the @lgcplus fact checking/counting dept might tell you) #localgov commonslibrary.parliament.uk/research-brief… 1/5

    Room151 1 week ago

    Dan Bates: Capitalisation directions are not the only tool for rebuilding finances: Dan Bates argues deep seated problems are contributing to a rush for capitalisation directions. For some time now we have been reading that a number of councils are in… dlvr.it/RspKff pic.twitter.com/xRRsgVim9u

    Room151 2 weeks ago

    Is local government funding “broken”?: Andrew Hardingham looks at the underlying issues that caused more than a third of respondents in the Room151/CCLA treasury survey to say that the funding system for local govenrment is[...] dlvr.it/RsYhsg pic.twitter.com/plNp7Ayys6

    Room151 2 weeks ago

    GameStop: A lesson for LGPS in the risks of short selling: Day traders coordinating their efforts through the social media platform Reddit have not only boosted the stock of US GameStop, but also badly hurt hedge funds engaged in huge bets[...] dlvr.it/RsGdVV pic.twitter.com/NTMC3j6J2u

    Room151 2 weeks ago

    Room151 panel backs unitary councils and devolution: Bigger isn’t always better when it comes to local government, according to Sir Bob Kerslake, chair of the Peabody Trust, but “ …we need to move to unitary government and[...] dlvr.it/RsFPNv pic.twitter.com/lT4eCi0TmV

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story Select committee calls for change to business rates
  • Next story Spending on children seeking asylum doubles

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.