Local authority's level of debt rises to £679m

West Northamptonshire Council's debt rose to £679m by the end of the 2024-25 financial year

A local authority's level of debt has risen sharply, with new figures showing a jump of more than £90m over the past year.

West Northamptonshire Council's debt stood at £585m at the end of the 2023-24 financial year.

By April 2025 this had climbed to £679m, equivalent to £1,564 per resident, according to government figures.

The Reform-led council told the Local Democracy Reporting Service it abides by strict borrowing limits and that debt "never runs ahead of what [it] can manage".

Across the UK, councils owe a combined £122.2bn, up 7% in a year, with about half of authorities increasing their debt levels.

West Northamptonshire Council said that borrowing allows continued investment in infrastructure, schools, housing and community facilities, "while ensuring that the cost is spread fairly across the generations".

The recent rise in council debt is partly driven by a near tripling of short-term central government loans, some of which are being used to cover revenue shortfalls rather than to fund investments.

The increase in debt at West Northamptonshire Council came under the previous Conservative-led administration, with Reform UK taking control of the council in the May local elections.

Opposition and Conservative leader Daniel Lister said borrowing was part of the approved Capital Programme and used for long-term improvements like housing, highways, and children's services.

He added that despite national financial pressures, the council "balanced the budget" annually, while maintaining responsible borrowing for resident-focused projects.

Neighbouring North Northamptonshire Council, which was also formerly led by the Conservatives, slightly reduced its debt to £443m, leaving a per-resident debt of £1,204.

Jonathan Carr-West, chief executive of the Local Government Information Unit, said spiralling council debt was "extremely worrying" and compared some short-term loans to "payday loans for local governments".