Every year Swindon Borough Council pays back to central government £5m from the money it makes from rent as repayment for the £150m debt it had to take on in 2012, as social housing was made to be self-financing.
That debt is now down to £99m. The borough council’s cabinet member for housing told colleagues: “At the current rate, if there is no need for further borrowing, the debt could be entirely paid off by 2040-41. That is completely unlikely.”
Coun Martyn said lower than inflation rents set by central government have left an increasing gap between what the council receives in rent from its 10,000 properties and its costs.
She said debt caps had been removed by government so the council could borrow more but “the council has not increased any of its debt, choosing instead to use existing reserves, right-to-buy receipts and grant income to fund its new build programme. Any increase in debt would require the HRA to finance the additional debt payments from existing resources.”
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