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Borrowing for Council Capital expenditure set to fall
The amount of money borrowed by the City of Edinburgh Council to fund capital expenditure is set to fall over coming years.
The Council’s Annual Treasury Strategy 2016/17, to be discussed by members of the Finance and Resources Committee on Tuesday, 2 February, aims to ensure the Council meets its funding and borrowing needs while securing new funding at the lowest rate.
The report highlights the Council’s successful approach to funding capital expenditure by reducing cash deposits. The underlying need to borrow forecast is to reduce by £140m from £1.510bn to £1.370bn between 31 March 2015 and 31 March 2021.
The reduction in borrowing is estimated to generate over £6m worth of savings by 2016/17, which have contributed towards the Council’s overall savings requirement.
Finance Convener, Councillor Alasdair Rankin, said: “Having just set the budget for 2016/17 the Annual Treasury Strategy further demonstrates our continuing commitment to manage the Council’s finances.
“With borrowing forecast to decrease over coming years we are set to save on associated costs such as interest payments allowing us to focus spend on the areas where it matters.”
Edinburgh’s 2016/17 Budget, set last week, aims to make £85.4m of savings while protecting frontline services, and has set out proposals for the following three years.