Grenfell Tower council borrowing balloons by £67m

The dismantling of Grenfell Tower will begin this month

Kensington and Chelsea Council borrowed an extra £67m last financial year to pay Grenfell Tower survivors and victims, data shows.

The cash, which was 41% of the total money it borrowed over 12 months, went towards resolving claims lodged since the tragedy and to contribute towards the restorative justice support programme, according to the council.

The interest on this debt is being paid using reserves specifically set aside for this purpose and has no impact on council taxpayers, the Local Democracy Reporting Service understands.

The council plans to repay these loans when it receives reimbursements from other companies responsible for the fire.

'Balance the books'

Last month, it was revealed the government had not paid its share of the Global Settlement Agreement (GSA) or said when it will.

The GSA provides millions of pounds of support for bereaved family members and survivors regardless of where they live.

It comes as analysis by the BBC's Shared Data Unit of government data found Kensington and Chelsea Council's total debt at the end of the last financial year jumped by £161.5m to £503.5m.

Cem Kemahli, lead member for finance, digital and efficiency, said: "This council has consistently balanced the books and it is normal for councils to borrow as part of a responsible approach to financial management.

"It helps us to invest in our borough with projects such as buying new waste collection vehicles, highways upgrades and investing in temporary accommodation and our new homes programme.

"It is not borrowing that puts council services at risk, but the new fair funding formula from government, which could see this council alone losing £80m from our budget over the next three years, so we are urging government to rethink the formula and extend the timeline for councils to adapt to the changes."