Council borrowing slashed by £25m

FINANCE officers have reduced Oldham Council’s net borrowing by more than £25 million.

The reduced expenditure brought some good news amidst the economic gloom for the cash-strapped council, which could axe up to 800 jobs to save £45 million over two years.

Cabinet members were given a report on the work of the council’s Treasury team, which is responsible for investments and borrowing.

Officers obtain funding for long and short-term projects and use money held in reserve to earn interest to help support services.

They had a successful 2009/10 when they earned five times the target rate of return — based on market rates — and reduced the council’s net borrowings by £15 million bringing the overall reduction to £25 million.

Councillor Lynne Thompson, cabinet member for performance and value for public money, said: “The treasury team is one of the council’s hidden gems. It makes a significant contribution to ensure the public’s money works harder to support services and I would like to thank them all for their hard work.”

Elsewhere, the cabinet was told the council currently has a £357,000 overspend but this will be fully resolved during the year.