Northumberland County Council's cabinet member for finance has defended spending at the local authority amid concerns over the level of debt accumulated. The council's current debt stood at £898.4 million as of the start of the financial year - up from £830.8 million in April 2025.
Debt Level Raises Concerns
The Conservative administration has repeatedly insisted this debt is manageable and within the council's limits. However, at Wednesday's meeting of the audit and standards committee, Independent councillor Patrick Lambert said he was concerned at the amount the council now owed.
He said: "I am interested in the direction of travel as to where the council is going over a period of time. I'm quite a simple person - I look at where the borrowing is in the council and I listen to the leader saying we're way within our limits, everything is rosy - we're doing really well and our treasury management is brilliant.
"However, the point I would make is for the residents of Northumberland - there are 162,000 dwellings in Northumberland, of which two thirds are owner occupied. What we're doing as a council is borrowing £5,500 in every one of those houses, regardless of whether they own it or not."They're going to be liable for it. If something goes wrong, it is the council tax payers who will have to pick up the pieces."That is the way I look at it. How are we going to service that debt going forward?"
Cabinet Member Responds
The council borrows money to pay for capital projects rather than using reserves. Significant investment has been undertaken in recent years, including on the Northumberland Line railway project and on various new school builds. The council's borrowing limit currently stands at around £1.6 billion.
Cabinet member for finance Coun Nick Oliver defended the council's position and suggested the point being made was "political". He said: "It's about choices and affordability.
"We believe the calls we have made are affordable and in the best interests of the residents of Northumberland. If we hadn't made those decisions, our schools wouldn't be as good; our roads wouldn't, our economy wouldn't; unemployment would be higher."Every decision on the capital programme is scrutinised, and we all vote on the budget. I understand and share some of your concerns about debt levels, but it's not a fair comparison to make with a business - it isn't a business, it's local Government, it doesn't share the same risk profiles that most businesses do."
