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We need to borrow millions
Corby Council may have to borrow more than £40m in the next financial year.
The recession and the slow housing market has meant the authority has had to make a provision to borrow cash to balance its books.
Up to 19m is needed to compensate for capital receipts not yet secured from land sales in various parts of the borough.
The council will potentially borrow as much as 10m to help complete the Kingswood regeneration project, which consists of 147 new homes.
Another 3m may be needed to cover a shortfall in the cost of the Corby Cube scheme and a separate 5m has been set aside for other projects.
The authority is already borrowing 1.64m to pay for legal costs in the toxic waste litigation case and could need another 5m in 2010-11 for any payouts to the families involved in the legal action.
Council chief executive Chris Mallender said most of the money would be borrowed temporarily from the Public Works Loans Board or from other authorities.
He said: "We don't expect to have to borrow to the limit but we are required as a council to make provision for any potential liabilities and that's what we've done."
Mr Mallender added that the money for the Kingswood development would be repaid by cash from rent on council owned properties.
Head of financial services, Adrian Sibley, said: "Current economic conditions have resulted in the council moving from a net investor to a net borrower, at least in the short-term."
Danesholme resident Andy Hill, 46, said: "Despite this, I don't think the council is doing too bad. They seem to be putting a lot of effort into the town centre."
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Sunday 27 May 2012
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