by Tristan Stewart-Robertson

A REPORT has revealed that West Dunbartonshire Council is in debt to the tune of £408 million.

The report, which is due to go before members of West Dunbartonshire Council’s Audit and Performance Review Committee today, (Wednesday) reveals the local authority’s gross debt stood at £408.255m by March 31 this year.

The report also reveals how external borrowing on behalf of WDC increased from the beginning of the last financial year (2015/2016) by £32m from £289.867m to £321.958m.

And, in a further bombshell, the local authority’s anticipated Capital Funding Requirements in March 31, 2018 could stand at an eye-watering £558.427m.

That’s more than £6,000 for every man, woman and child in the entire authority - and enough to pay for three hospitals, 14,500 nurses or 4000 heart surgeons.

The report states: “External borrowing has increased from £289.867m at the beginning of the year to £321.958m at the end of the (financial) year.

“This is due to new borrowing required to fund the capital programmes.

“Maturing debt has been renewed and overall there was a reduction in the average interest rate from 3.96 per cent to 3.64 per cent.”

Three years ago the local authority hit the headlines when it was revealed that the level of debt owed by West Dunbartonshire Council was the third highest in Scotland.

A then report by auditors on the finances of the local authority revealed the shock statistic and confirmed council borrowing sat at a whopping £317.1m.

Three years on the level of debt has risen by almost £100m.

Critics have claimed the rising debt will overshadow future generations, as paying for debt will be a priority for the authority.

And the fact that there are pockets of deprivation all over West Dunbartonshire, against a backdrop of ‘massive’ borrowing by the local authority, some people are questioning if the money is going to the areas that need investment the most.

But Labour and SNP politicians broadly agreed the investment was necessary and was being carefully monitored.

Also in the report the local authority’s total capital expenditure – the amount spent to improve a long-term assets such as equipment or buildings – this year was £47.041m down from the estimated £57.543m.

Councillor Jim Bollan said: “In principle I have nothing against investment to create sustainable services and jobs which increases people’s purchasing power.

“Unfortunately the vast majority of the Labour council capital spending is in bricks and mortar and is I believe, unsustainable.

“The classic example of this is the PPP schools project which costs £14m per year- £14m that comes out of the education budget leading to cuts in services.”

SNP MSP for Clydebank Gil Paterson told the Post: “This is an astronomical debt forecast. Once again, incompetent Labour - the SNP had to pick up the mess the last time the Labour Party lost West Dunbartonshire Council. This may be the case next time round.”

The report states the council is borrowing “prudently”. But it says borrowing must only be for capital purposes over the medium term in order to ensure levels remain prudent.

It continues: “Gross borrowing should not therefore, except in the short term, exceed the total of the capital financing requirement in the preceding year (2015/16) plus the estimates of any additional capital financing requirement for the current (2016/17) and next two financial years.”

This essentially means that the council is not borrowing to support revenue expenditure.

The report also states: “The council has complied with all relevant statutory and regulatory requirements which require the council to identify and, where possible, quantify the levels of risk associated with its treasury management activities.

“In particular its adoption and implementation of both the Prudential Code and the Code of Practice for Treasury Management means both that its capital expenditure is prudent, affordable and sustainable, and its treasury practices demonstrate a low risk approach.”

A spokesperson for West Dunbartonshire Council defended the figures and said borrowing was necessary to ensure the continued investment into schools, housing and infrastructure projects.

The spokesperson said: “In the same way an individual takes out a mortgage to purchase a house, the council has borrowed money to invest in schools, care homes, housing, roads and lighting improvements, new offices and sports facilities.

“These projects will improve West Dunbartonshire and the lives of the people who live here for generations to come.

“The council’s long-term financial plan fully supports the repayments required and the arrangements.”

Council Leader Martin Rooney said “chronic underinvestment” in council assets was obvious in 2012 and needed corrected.

He said: “This was a false economy as the running costs and the inflexibility meant that the costs of delivering quality services in West Dunbartonshire for local people was much higher that other Councils. It was clear that we needed to invest and to introduce a longer term planning and investment approach.

“In 2013 we introduced our first Ten-Year Capital Programme which allowed us to plan and prioritise our investments and to maximise the regenerative effect of these. We also created a Regeneration Fund to help draw in external investment and to grow our economy.

“This approach has led to a sustainable investment programme that will attract people and investment to our area including our massive investment in community sports and play.

“I was delighted when opposition councillors in West Dunbartonshire were able to give their full support to our refreshed Ten Year Capital Investment Plan in February this year.”

SNP group leader Jonathan McColl said: “The SNP are not in opposition for opposition’s sake and we’ve delivered capital projects across the council area while ensuring proper scrutiny at all stages.

“As the financial situation changes, we may need to revisit our current strategy.”