Green perspectives on Stockwood and Bristol. Mostly.

Thursday, 12 January 2012

Imprudential borrowing

It's barely credible that these days, such things as providing school places and 'extra-care' provision for the elderly should not be a routine part of a council's budget.

Not in Bristol, though.  Not in today's climate, under today's government.   It seems that the only way to provide such things is by borrowing.  What kind of sustainable economics is that?

Still, there is one part of the proposal to borrow an extra £50 million that is easily explained.  A £10 million chunk of the £83 million-plus local contribution towards completing a South Bristol Ring Road and an under-used loss-making rapid transit.  It's the first cut in the plan to raise cash from a city-centre workplace parking charge.

Take a look round the back of the Bristol Evening Paste, and you can see one good reason.

1 comment:

between-the-lines said...

More borrowing - and at 4% in a time when you can't envisage interest rates going up for years, especially given they saw negative rates during Japan's Lost Decade.

Why doesn't BCC think a bit more - creatively - their fave word?

After all, the City of Bristol is so wealthy that central government suspended aid to poor areas arguing, quite reasonably imv, that the funds should be provided instead by the rich burghers. But have they squeezed out anything of substance in this now Big Society?

Could the Council raise funds by issuing bonds, for example? Good citizens should surely be happy with a, say, 3% rate in this low interest environment, as well as acting in a good cause, and thereby we'd have a saving to taxpayers, combined with a feel-good factor for the worthy pillars of the community in that the city is becoming more self-reliant.