Cornwall Council’s Debt Surpasses £1 Billion Mark Amid Financial Struggles
Cornwall Council’s debt has reached over £1 billion, raising concerns about its financial health and future services.
Cornwall, UK, Debt, Council, Finance
Cornwall: Cornwall Council is one of the UK’s most indebted councils. It owes over £1.3 billion, according to the Ministry of Housing. This makes it the fifth largest local authority in England.
In fact, Cornwall ranks as the 12th most indebted council in the UK. The top 20 councils owe more than £30 billion combined. Last year, all local authorities had a total debt exceeding £140 billion.
Some councils have declared bankruptcy. Birmingham City Council leads with £3.4 billion in debt. Leeds City Council follows with £2.5 billion, and Woking owes £2.1 billion.
Since 2021, Cornwall’s Conservative administration has struggled with funding from the central government. This has made it hard to balance budgets for essential services like social care and school transport.
For the third year in a row, taxpayers may face a 4.99% rise in council tax. This increase aims to support a net revenue budget of £828.866 million for 2025/26.
The council’s financial issues have led to plans for 100 job cuts and selling off 2,000 land and building assets. They also plan to hand over some free car parks to a private company and close adult education centers.
A council spokesperson stated that Cornwall is the fifth largest local authority. They are working to find savings to maintain a balanced budget for essential services.
The council’s borrowing is meant for public services like housing and local infrastructure. By December 31, 2024, their net borrowing will be £904 million after accounting for investments.
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