Nine-figure borrowing by Telford and Wrekin Council is protecting frontline services from cuts and keeping threats of a merger with Shropshire at bay, a cabinet member has said.
Finance portfolio holder Lee Carter said his Labour administration’s loans, totalling a quarter of billion pounds, were protecting the “future viability of this council”.
Conservative opposition leader Andrew Eade said he and his group were also against amalgamation, and have repeatedly tabled motions opposing the idea.
They were discussing Telford and Wrekin’s medium term budget, including a 3.2% council tax rise next year, which Cllr Carter said remains the lowest in the West Midlands.
He said the council’s spending plan included £189m in capital investments, including £50m for road and transport improvements and £30m for schools.
A report for Telford and Wrekin Council’s audit committee last month showed the authority is currently borrowing £275.6m, an £18.9m increase since last year, and argued this is taking advantage of historically low interest rates.
Cllr Carter said: “I’d just like to say a few words about anyone who suggests we should somehow not borrow in a responsible and planned way to invest to generate funds for frontline services.
“Make no mistake: That is, effectively, proposing cuts for vital frontline services, and, God forbid, were those people ever in a position to enact such an irresponsible policy, it would actually represent a real danger to the future viability of this council.
“The continued financial stability of this organisation is critically important to our rebuttal of calls from Shropshire Conservative MPs in particular to merge Telford and Wrekin Council into Shropshire Council.”
Cllr Andrew Eade, who leads the Conservative group, did not discuss the financial plans in detail but said he and his colleagues were “looking forward to the budget debate at full council”.
“There’s one comment I’ll make about merging the two councils,” he said.
“As you know we are as one on this. We put forward two motions saying a merger shouldn’t and mustn’t happen, we’re two very different communities, and I’m glad you supported our motions on that.”
Telford and Wrekin Council’s cabinet approved the Service and Financial Planning Report for 2019-20 and 2021-22, presented by Cllr Carter.
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