Get involved! Send your photos, video, news & views by texting MG NEWS to 80360 or e-mail us
Councils lend to hard-up Herefordshire Council
2:00pm Saturday 2nd February 2013 in News
CASH-strapped Herefordshire Council borrowed about £8.5 million from other authorities in November last year alone to make ends meet.
One loan was £1m from cost-cutting West Mercia Police, to be repaid this month with £567 of interest.
Other short-term loans over November included £1.5m from Leicester City Council to be paid back in December with £425 of interest.
Two million pounds was also loaned from Merseyside Transport to be paid back by July this year with £4,909 of interest, while the same amount was borrowed from South Yorkshire Council to be paid back by August this year with £5,868 of interest.
Each interest sum includes brokers’ commission.
The council says it is good practice to use short term loans to provide “additional liquidity” when balances were relatively low. Much of the council’s more recent borrowing has been to fund capital spending.
Figures for December are not yet available but further borrowing was being anticipated.