Council’s external debt is highest in Scotland
A financial warning has been given to East Lothian Council which has the highest level of net external debt burden out of all Scottish local authorities.
An independent auditor report, produced by KPMG, stated that this was the equivalent of £3,500 for very person in the county, “placing significant pressures on future available revenue funding.”
The Audit Scotland benchmark, taken from analysis of the unaudited financial statements of the country’s 32 local authorities, showed that East Lothian had the highest level of net external debt when taken as a proportion of revenue expenditure and per head of population.
Borrowing rose in 2011-12 by £38.9 million - 15 per cent - compared to a 26 per cent increase in capital expenditure.
The report, which highlighted a “significant risk,” advised: “The level of external debt needs to be considered in the context of the medium to long-term financial position of the council to ensure that a sustainable long-term financial position is achieved over the medium to long-term.”
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