Plymouth borrowing is "sensible and affordable"

According to council's leader

Leader of Plymouth City Council Tudor Evans denies it is anywhere close to bankruptcy, and claims the authority’s level of borrowing is “sensible and affordable.”

Cllr Evans told a cabinet meeting on Monday that negative comments by opposition councillors about the state of the council’s finances from are “talking the city down.”

Conservative councillors are concerned about £702 million of borrowing, a rise of £53 million last year. By 2028 the figure is set to be around £1 billion.

Conservative and Independent members want more scrutiny to rein in projects after large overspends.

Cabinet members were presented with a provisional report for 2024/25 which shows a balanced budget without having to use ‘working balances.’

Mr Evans (Lab, Ham) said the report shows finances aere “well managed”.

Children services had a £12 million overspend last year, and adult social care, Send provision and homelessness accounted for 83 per cent of the whole budget.

But services had been protected and the council had invested in ambitious regeneration plans for the city, he claimed.

Some £109 million had been spent on the capital programme during 2024/25, with £73 million of that from external funding.

Mr Evans said the “constant drip, drip, drip of opposition councillors claiming we are close to bankruptcy is completely false, nothing could be further from the truth.

“The council is well managed, financially there is hardship, stresses and strains and priorities but we are not anywhere close to bankruptcy.”

Opposition councillors raised concerns in December about the cost of Plymouth’s new crematorium, The Park, rising from £8 million to £30 million in a few years, and Forder Valley Link Road, which opened last year, costing more than £15 million than budgeted.

Cllr Evans said the council is investing in projects and assets to drive growth.

He continued: “Most people have to borrow money to buy a house, unless they are a millionaire. This council’s borrowing is by no means an outlier. The borrowing is sensible and affordable and responsible.”

Cabinet member for finance Mark Lowry (Lab, Southway) said external funding had helped finance the Woolwell to The George road improvements, the railway station regeneration, housing projects, net zero ambitions and buses, the freeport, Armada Way regeneration, highways maintenance, central engineering projects and the national marine park.

He said business parks alone cost more than £400 million, but provided jobs, business rates and rents, and that the council’s finances are in a good position considering inflation, the cost of living crisis, increases in the national living wage and increased demand for council services.

“We have got challenges and there are challenges ahead,” he said.

Reserves of around £4 million had been used, and underspends redirected from other areas to balance the budget.

“The amount of money we spend on provision of care for children, adults and on homelessness will remain but we are working hard to provide additional support in Send, homelessness accommodation and new children’s homes,” said Cllr Lowry.