Homes plans trigger £4 million rise in West Norfolk Council borrowing need, report reveals

Borough Council of King's Lynn and West Norfolk Councillors ENGANL00120130108124214
Borough Council of King's Lynn and West Norfolk Councillors ENGANL00120130108124214
0
Have your say

Work on major housing developments around Lynn raised West Norfolk Council’s borrowing requirements by almost £4 million during the last financial year, it has emerged.

The figures were revealed in a treasury report delivered to the authority’s ruling cabinet on Tuesday.

But officials maintain that more money will be generated as the new properties on sites such as the Nar Ouse Regeneration Area (NORA) are bought.

The increased figure relates to what is known as the council’s capital financing requirement (CFR), which measures its underlying borrowing need for capital projects, such as housing schemes.

Officers’ report explained that relates to both past and future expenditure which has not yet been financed.

The document shows that, while the council’s actual borrowings fell by more than £3 million during the year to the end of March to £13.4 million, its CFR figure rose by nearly £4 million to £18.6 million over the same period.

But much of that figure, around £2.9 million has been put down to work on major housing projects.

And deputy leader Alistair Beales said: “There should be a significant capital receipt. Not only will the coffers be replenished but be healthier than they were before.”

The report also said the council had complied with prudent borrowing guidelines.