Swindon Council to Borrow More Due to Housing Improvement Costs

In 2012, tenants voted to keep Swindon Council as their landlord. The government then put a £138 million debt on the council, making their total housing debt £150 million.

Swindon paid £5 million yearly, lowering the debt to £86.5 million. The debt will now increase significantly, though. The council plans to borrow £150 million for housing upgrades.

Kevin Small said repairs would have reduced this borrowing. By 2037, the council’s housing debt will reach £273 million. Repayments will begin then, aiming for zero debt by 2055. Janine Howarth said the money funds needed housing improvements and they must bring homes up to an acceptable standard.

Kevin Small thinks past payments were not ideal. He said housing improvements are now more costly, suggesting earlier repairs could have reduced the current bill.

Howarth stated the £86 million debt has 3.32 percent fixed interest. Additional borrowing interest averages around 2.25 percent.

Conservatives said the debt could end by 2040/41 with past payments, assuming no extra debt, according to the 2021 briefing document. They noted an £80 million investment shortfall existed within housing. From 2012 to 2021, the yearly interest dropped from £5 million to £3.45 million.