The levels of debt at local councils across the country have been revealed.
At the end of the last financial year Lincolnshire County Council had a total debt of £449,525,000 and South Holland District Council £67,456,000 according to figures collated by the Local Democracy Reporting Service (LDR).
The county council’s figures is actually £8.4m lower than it was at the same point in the previous financial year.
It equates to a total debt of £574.25 per person throughout the county’s population.
The district council debt has not budged in the last financial year.
It equates to £688.92 per resident.
Both ‘per person’ debt figures are below the average for the UK.
The LDR states that analysis of data from the Ministry of Housing, Communities and Local Government (MHCLG) shows UK councils owe a combined £122.2bn to lenders, equivalent to £1,791 per resident, as of April 2025.
Both the county council and district council debt not increasing bucks the national trend with the debt nationwide having risen by seven per cent.
There are 30 councils which have also been given additional government funds.
Councils can borrow funds to invest in projects such as schools, leisure centres and theatres – they can also borrow to invest in property that will bring in an income over and above repayments on the debt.
Concerns over local government funding are part of the reason why reorganisation has been proposed, and councils are currently bidding to create new ‘unitary authorities’ taking on the roles of both county and district councils.
The Voice asked both Lincolnshire County Council and South Holland District Council for a comment but neither had sent one at the time of going to press.
After going to press, the county council did provide the following:
Michelle Grady, assistant director for finance, said: “Like all councils, we occasionally borrow money to invest in our services. This will be used to fund major improvements such as new roads, new schools and new fire engines. This is a bit like taking out a mortgage.
“However, we are careful to ensure any loans are affordable, and that our borrowing costs don’t exceed 10 percent of our net funding. This is closely monitored by external auditors.
“Following the election earlier this year, the council’s new administration has said it is committed to reducing the council’s level of historic debt moving forward.”
Leader of Lincolnshire County Council, Coun Sean Matthews, said: “Since we took leadership of the council in May, we’ve been carefully looking at all of the finances to make sure residents get good value for money from every penny of council spending.
“We have been concerned about the historic level of debt the council has built up, and taxpayers have been funding at least £23,850 in repayments every single day.
“Residents will rightly want to know what this borrowing funds and if there are ways to reduce this burden.”
