Summary
Councils in the UK are selling public buildings, like schools and sports clubs, to pay off debts that have reached £122 billion. The government is working on reforms to help fix the funding problems causing these high debts. Many councils are even given special permission to sell properties to cover everyday expenses.
Key Facts
- UK councils have accumulated £122 billion in debt.
- Public buildings, including schools and sports clubs, are being sold to reduce these debts.
- The Public Works Loans Board provided most of the low-interest borrowing for councils.
- 30 councils received special permissions in 2023 to sell assets to fund daily operations.
- Croydon council's debt is at £1.5 billion, even after selling £210 million worth of property.
- Councils can borrow to fund improvements or make income-generating investments.
- Since 2010, councils have invested in shopping centers and solar farms using borrowed funds.
- Government acknowledges the current funding system for councils is broken and is planning reforms.
