Erewash bucks trend as councils ‘spiral’ into red

Out of the UK’s 382 local authorities just 31 have managed to stay in the black – and Erewash is one of them.

The debts built up by councils elsewhere total £122billion – up seven per cent in the past year, according to deep analysis by the BBC Shared Data Unit.

That is equivalent to a debt of £1,700 per resident. But here in Erewash the figure is . . . NIL.

Locally only Amber Valley and Rushcliffe councils boast similar zero debt. Erewash council leader James Dawson said: “It is no secret that times have been tough for cash-strapped local authorities – but here in 

Erewash we have been laser-focussed on our priority of putting local people first.
“It has taken robust financial stewardship – plus some hard decisions – to keep the council from going into the red. But our mission to remain debt-free is now paying off after residents put their trust in us.

“Just weeks ago the council was in a position to reveal it is ploughing a massive £2million into improving the lives of people in the borough. The boost is in the form of a new Erewash Investment Fund, which we have been able to launch while other councils are struggling.”

Elsewhere the debt crisis is taking its toll, according to the BBC’s report on its analysis of data from the Ministry of Housing, Communities and Local Government. An online news bulletin said: “Communities across the UK are paying for spiralling levels of council borrowing with a fire sale of publicly owned facilities.” 

Dr Jonathan Carr-West, chief executive of the Local Government Information Unit, said he was told by one council finance officer: “It's essentially payday loans for local government."

The Government says it is pushing ahead with reforms to council funding after inheriting a “broken” system.