Research Note 136 | 26th June 2014
Council liabilities Public sector debt is forecast by the Office for Budgetary Responsibility to exceed £1.3 trillion in 2014-15.1 However, as explained by previous TaxPayers’ Alliance research2, this number does not include a range of expensive commitments such as unfunded pension liabilities. This research looks at the indebtedness of local authorities in the UK. It has found large disparities in the size of councils’ liabilities and the amount they are borrowing, even among similar authorities in the same region of the country. Much of the long-term liabilities are related to the partially funded Local Government Pension Scheme, but 40 per cent take the form of long-term borrowing. This borrowing is mostly from the Public Works Loan Board (PWLB) and market lenders such as commercial banks. The key findings of this research are:
1 2 3
Local authorities in the UK owed more than £180 billion in long-term liabilities on 31st March 2013 – an increase of 8.7 per cent on the previous year.
This is almost seven times the amount raised in Council Tax in 2012-13.3
The long-term liabilities added up to £2,828 per person in the UK on 31st March 2013.
Long-term borrowing made up almost £72 billion of the liabilities.
Long-term liabilities were 66 per cent of long-term assets on 31st March 2013, up from 60 per cent in the previous year.
38 councils had long-term liabilities of more than £4,000 per resident, 11 of more than £5,000 and 4 of more than £6,000.
105 councils increased their long-term borrowing during 2012-13 whilst 214 decreased it.
73 councils had no long-term borrowing. 66 of these were district councils, three were London boroughs and four were unitary authorities or metropolitan boroughs.
http://cdn.budgetresponsibility.org.uk/37839-OBR-Cm-8820-accessible-web-v2.pdf#page=166 http://www.taxpayersalliance.com/realdebt.pdf
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293759/37630_Budget_201 4_Web_Accessible.pdf#page=107
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Birmingham City Council, the UK’s largest local authority, had by far the biggest long-term liabilities at almost £6 billion. Just under £2.8 billion of this is made up of long-term borrowing. Birmingham’s liabilities are equal to £5,500 per resident – the 8th highest in the country.
Scottish councils have by far the biggest liabilities relative to their size, with average long-term liabilities of almost £4,200 per resident.
Commhairle nan Eilean Siar had the biggest long-term liabilities per resident in the UK with £8,174. In England South Tyneside Council had the biggest £6,125. In Wales Blaenau Gwent had the biggest - £7,789
In the East Midlands:
Nottingham City Council had the biggest long-term liabilities at £1.34 billion – a five per cent increase on the previous year.
Nottingham also had the biggest liabilities per resident - £4,353.
10 councils had long-term liabilities equal to or more than the value of their longterm assets, including Nottinghamshire County Council.
In the East of England:
Essex County Council had the biggest long-term liabilities at £1.48 billion – a four per cent increase on the previous year.
Harlow District Council had the biggest liabilities per resident - £3,808.
Three councils had long-term liabilities equal to or more than the value of their long-term assets: Broadland District Council, Fenland District Council and East Cambridgeshire District Council.
In London:
Croydon had the biggest long-term liabilities at £1.36 billion – a 16 per cent increase on the previous year.
Islington had the biggest liabilities per resident - £4,777.
Brent’s long-term liabilities were equal to 93 per cent of the value of its long-term assets.
In the North East:
Durham County Council had the biggest long-term liabilities at £1.48 billion – an eight per cent increase on the previous year.
South Tyneside council had the biggest long-term liabilities per resident - £6,125.
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Three councils had long-term liabilities equal to or more than the value of their long-term assets: Redcar and Cleveland Borough Council, Darlington Borough Council and North Tyneside Council.
In the North West:
Lancashire County Council had the biggest long-term liabilities at £2.03 billion – a 10 per cent increase on the previous year.
The Metropolitan Borough of Knowsley had the biggest long-term liabilities per resident - £3,886.
10 councils had long-term liabilities equal to or more than the value of their longterm assets including Liverpool City Council.
In Northern Ireland:
Belfast City Council had the biggest long-term liabilities at £146 million – a seven per cent increase on the previous year.
Coleraine Borough Council had the biggest long-term liabilities per resident - £807.
Limavady Borough Council’s long-term liabilities were equal to 102 per cent of the value of their long-term assets.
In Scotland:
Glasgow City Council had the biggest long-term liabilities at £2.78 billion – a 10 per cent increase on the previous year.
Comhairle nan Eilean Siar had the biggest liabilities per resident in the UK - £8,174.
Two councils had long-term liabilities equal to or more than the value of their longterm assets – Fife and Dumfries & Galloway.
In the South East:
Kent County Council had the biggest long-term liabilities at £2.25 billion – a one per cent increase on the previous year.
Portsmouth City Council had the biggest long-term liabilities per resident - £3,965.
Five councils had long-term liabilities equal to or more than the value of their longterm assets, including Surrey County Council and Kent County Council.
In the South West:
Cornwall Council had the biggest long-term liabilities at £1.42 billion – an 11 per cent increase on the previous year.
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Bristol City Council had the biggest liabilities per resident - £3,113.
12 councils had long-term liabilities equal to or more than the value of their longterm assets, including Devon County Council and Somerset County Council.
In Wales:
Cardiff City Council had the biggest long-term liabilities at £1.21 billion – a six per cent increase on the previous year.
Blaenau Gwent had the biggest long-term liabilities per resident - £7,789.
Two councils had long-term liabilities equal to or more than the value of their longterm assets – Torfaen and Merthyr Tydfil.
In the West Midlands:
Birmingham City Council had the biggest long-term liabilities at £5.96 billion – a 15 per cent increase on the previous year.
Birmingham also had the biggest liabilities per resident - £5,494.
Nine councils had long-term liabilities equal to or more than the value of their longterm assets, including Birmingham City Council, Warwickshire County Council and Walsall Metropolitan Borough Council.
In Yorkshire and the Humber:
Leeds City Council had the biggest long-term liabilities at £3.09 billion – a six per cent increase on the previous year.
Barnsley Metropolitan Borough Council had the biggest liabilities per resident £4,795.
Five councils had long-term liabilities equal to or more than the value of their longterm assets, including Bradford City Council.
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Guide to tables: 1. Local authority long-term liabilities by region 2. Local authorities where long-term liabilities exceed long-term assets 3. Local authorities with the biggest long-term liabilities 4. Local authorities with the biggest long-term liabilities per resident 5. Local authorities with biggest percentage increase in long-term liabilities 6. Local authorities with biggest cash increase in long-term liabilities 7. Local authorities with the highest long-term borrowing 8. Local authorities with the biggest percentage increase in long-term borrowing 9. Local authorities with the biggest cash increase in long-term borrowing To see the complete data set click here
To discuss the research, please contact: Alex Wild Policy Analyst, TaxPayers' Alliance alex.wild@taxpayersalliance.com 07776 205 823
Financial support for this research paper was provided by the Politics and Economics Research Trust (charity number 1121849). Any views expressed in this paper are those of the author and not those of the research trust or of its trustees.
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1. Local Authority long-term liabilities by region Region
Long-term liabilities on 31st March 2013 (£,000)
Long-term liabilities on 31st March 20012 (£,000)
East Midlands
11,943,014
11,121,644
East of England
14,337,071
London
Long-term liabilities as a percentage of assets on 31st March 2013 (%)
Long-term liabilities per resident on 31st March 2013 (£)
7
72
2,615
13,372,070
7
57
2,427
27,750,497
24,658,949
11
56
3,340
North East
9,280,448
8,721,198
6
83
3,566
North West
17,127,979
15,262,586
11
72
2,418
859,574
811,851
6
50
471
Scotland
22,091,676
20,630,478
7
57
4,183
South East
18,596,704
18,156,200
2
57
2,131
South West
12,391,352
11,623,869
6
71
2,321
Wales
10,191,154
9,270,496
9
67
3,315
West Midlands
19,140,838
17,061,828
11
87
3,392
Yorkshire and the Humber
16,330,283
14,896,259
9
80
3,072
180,040,590
165,587,428
9
66
2,828
Northern Ireland
Total
Increase (%)
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2. Local authorities where long-term liabilities exceed long-term assets Local authority
Sevenoaks Forest of Dean Tewkesbury Hart Weymouth and Portland Walsall Ryedale Purbeck West Lindsey Broadland Redcar and Cleveland Gedling Fenland Dumfries and Galloway Teignbridge South Staffordshire Hyndburn Chorley Fylde North Dorset East Staffordshire Stafford South Somerset Amber Valley South Lakeland Rossendale Devon Oldham Birmingham Mendip Merthyr Tydfil Blaby Bradford Nottinghamshire North Tyneside Surrey Craven Malvern Hills
Long-term liabilities on 31st March 2013 (£,000)
Long-term liabilities on 31st March 20012 (£,000)
Long-term liabilities as a percentage of long-term assets on 31st March 2013 (%)
53,247 33,023 29,111 32,038
21,090 17,596 16,717 19,590
252 188 174 164
81,289 758,116 26,899 16,068 26,120 22,114
51,431 488,720 18,017 11,040 18,099 15,712
158 155 149 146 144 141
388,627 41,730 52,470
279,320 30,224 38,484
139 138 136
936,207 68,447 27,086 57,114 48,819 30,668 17,651 57,684 49,554 71,424 63,546 54,296 33,497 1,354,324 689,019 5,963,700 30,107 256,433 26,551 1,459,331 1,329,542 901,716 1,387,483 34,542 28,245
689,256 51,480 20,828 44,653 38,173 24,647 14,617 47,828 41,786 60,576 54,712 46,990 29,545 1,196,488 609,399 5,305,500 26,956 234,699 24,377 1,340,267 1,223,370 837,278 1,295,587 32,313 26,436
136 133 130 128 128 124 121 121 119 118 116 116 113 113 113 112 112 109 109 109 109 108 107 107 107
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Local authority
Warwickshire Kent North East Lincolnshire South Northamptonshire Knowsley East Cambridgeshire Rushcliffe Torridge Liverpool Fife Wyre Forest Somerset Newcastle-underLyme West Somerset Northamptonshire Ribble Valley Darlington Wakefield Wirral Erewash Limavady Isle of Wight
Long-term liabilities on 31st March 2013 (£,000)
Long-term liabilities on 31st March 20012 (£,000)
Long-term liabilities as a percentage of long-term assets on 31st March 2013 (%)
1,064,800 2,247,670
997,900 2,108,485
107 107
318,465
300,338
106
34,406 567,065
32,537 537,721
106 105
18,528 40,053 31,689 1,314,214 2,290,478 56,489 994,475
17,634 38,176 30,266 1,256,808 2,199,548 54,328 957,388
105 105 105 105 104 104 104
64,592 18,980 1,103,229 16,665 271,592 813,203 750,584 35,834 24,060 360,025
62,310 18,344 1,066,363 16,152 263,622 790,541 732,001 35,150 23,653 354,619
104 103 103 103 103 103 103 102 102 102
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3. Local authorities with the biggest long-term liabilities Local authority Birmingham Leeds Glasgow Fife Kent Edinburgh Lancashire Sheffield Durham Essex Manchester South Lanarkshire Bradford Norfolk Cornwall
Long-term liabilities on 31st March 2013 (£,000) 5,963,700 3,092,489 2,779,907 2,290,478 2,247,670 2,084,090 2,032,200 1,785,502 1,483,169 1,482,753 1,467,406 1,461,691 1,459,331 1,436,251 1,422,593
Long-term liabilities on 31st March 2012 (£,000) 5,185,800 2,929,350 2,524,213 1,999,953 2,218,625 2,000,058 1,841,800 1,482,990 1,369,098 1,428,518 1,336,332 1,377,388 1,420,891 1,303,130 1,287,820
4. Local authorities with the biggest long-term liabilities per resident Local authority Eilean Siar Blaenau Gwent Dumfries and Galloway Fife South Tyneside Shetland Islands Gateshead Birmingham Dundee Inverclyde Highland Newcastle upon Tyne Barnsley Islington West Dunbartonshire
Long-term liabilities on 31st March 2013, per resident (£)
Population 26,196 69,822 148,295 369,197 148,428 22,625 200,153 1,085,417 145,453 78,915 225,110 282,442 233,671 211,047 90,324
8,174 7,789 6,313 6,204 6,125 5,926 5,534 5,494 5,303 5,228 4,931 4,837 4,795 4,777 4,775
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5. Local authorities with biggest percentage increase in long-term liabilities Local authority
Long-term liabilities on 31st March 2013 (£,000)
Long-term liabilities on 31st March 2012 (£,000)
Increase (%)
since 2012
Chichester Blackburn with Darwen Cookstown Eden Blackpool Shetland Islands Halton Derbyshire Dales South Staffordshire Midlothian Broadland Oldham South Norfolk Hambleton Camden
12,850
8,674
48
448,872 9,426 10,279 429,512 134,071 194,289 30,545
339,067 7,205 7,884 332,401 104,524 152,903 24,093
32 31 30 29 28 27 27
27,086 322,205 22,114 689,019 34,573 24,661 983,805
21,628 257,339 17,711 555,174 27,886 20,034 800,114
25 25 25 24 24 23 23
6. Local authorities with biggest cash increase in long-term liabilities Local authority Birmingham Sheffield Fife Glasgow Newcastle upon Tyne Hull Lancashire Croydon Camden Wolverhampton Leeds Barnsley Liverpool Lewisham Southwark
Long-term liabilities on 31st March 2013 (£,000)
Long-term liabilities on 31st March 2012 (£,000)
Increase (£)
since 2012
5,963,700 1,785,502 2,290,478 2,779,907
5,185,800 1,482,990 1,999,953 2,524,213
777,900 302,512 290,525 255,694
1,366,220 1,201,564 2,032,200 1,356,012 983,805 1,140,000 3,092,489 1,120,551 1,314,214 952,997 1,344,153
1,171,504 1,008,317 1,841,800 1,171,830 800,114 975,500 2,929,350 957,414 1,154,660 793,643 1,185,849
194,716 193,247 190,400 184,182 183,691 164,500 163,139 163,137 159,554 159,354 158,304
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7. Highest long-term borrowing Local authority
Long-term borrowing 2012-13 (£,000)
Long-term (£,000)
borrowing
2011-12
Birmingham
2,787,200
2,617,600
Glasgow
1,440,782
1,351,708
Edinburgh
1,431,317
1,408,752
Leeds
1,292,039
1,260,256
Kent
1,023,575
1,025,805
Croydon
801,585
696,245
South Lanarkshire
793,008
789,963
Dudley
719,578
733,504
Nottingham
701,322
637,713
Highland
652,179
625,695
Sheffield
651,000
539,889
Cornwall
629,547
628,575
Fife
601,551
584,378
Southwark
554,955
462,455
North Lanarkshire
546,246
550,373
8. Biggest percentage increase in long-term borrowing Local authority
Long-term borrowing 2012-13 (£,000)
Increase on 2011-12 (%)
Wyre Forest
3,027
11,111
Stafford
2,000
910
Elmbridge
4,820
221
60,429
49
3,542
39
197,993
38
7,859
34
47,664
34
153,387
33
34,691
32
536,233
30
92,360
26
Sheffield
651,000
21
Southwark
554,955
20
Camden
387,537
17
Halton* Amber Valley Midlothian* Pendle North Down Peterborough Eastbourne Newcastle upon Tyne* Blaenau Gwent*
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9. Local authorities with biggest cash increase in long-term borrowing Local authority Birmingham
Long-term borrowing 2012-13 (£,000)
Increase on 2011-12 (£,000)
2,787,200
169,600
Newcastle upon Tyne*
536,233
122,194
Sheffield
651,000
111,111
Croydon
801,585
105,340
Southwark
554,955
92,500
1,440,782
89,074
Nottingham*
701,322
63,609
Camden
387,537
57,296
Midlothian*
197,993
54,973
Northumberland*
499,760
48,543
Peterborough
153,387
38,000
Dundee
393,261
32,283
1,292,039
31,783
Nottinghamshire
309,040
29,200
Highland
652,179
26,484
Glasgow
Leeds
*Councils marked with an asterisk reduced their short-term borrowing by more than half of the amount by which they increased their long-term borrowing.
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Sources and methodology
4 5 6
The figures for long-term liabilities, long-term borrowing and long-term assets were all taken from the balance sheets from each local authority’s 2012-13 statement of accounts.
The figures only include liabilities and assets from council balance sheets. Figures from “group” balance sheets have been excluded as there was too much inconsistency in the accounts to make meaningful comparisons.
Population estimates for 2012 based on the 2011 census figures were taken from: ONS4, the General Register Officer for Scotland5 and the Northern Ireland Statistics and Research Agency6. The figures are available in the full data tables available through the link on page 5.
Population figures for lower tier authorities have been excluded from regional totals to avoid double-counting.
In some instances, local authorities reported a large increase in their long-term borrowing and a large decrease in their short term borrowing. This was possibly the result of borrowing classified as long-term in 2011-12 coming due in 2012-13 and being refinanced with further long-term borrowing. Instances where short-term borrowing decreased by more than half of the amount by which they long-term borrowing increased have been marked with an asterisk.
The City of London and the Greater London Authority were excluded from the tables showing the councils with the highest long-term liabilities and long-term borrowing due to their unique natures
http://www.ons.gov.uk/ons/publications/re-reference-tables.html?edition=tcm%3A77-319259 http://www.gro-scotland.gov.uk/statistics/theme/population/projections/sub-national/2010-based/tables.html http://www.nisra.gov.uk/archive/demography/population/midyear/MYE_2012_Report.pdf
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