CLAIMS local residents are being denied the full truth about a £57 million-a-year black hole facing Warrington Borough Council, have been refuted by the council’s finance portfolio holder.
Following last week’s Full council meeting, Independent Cllr. Graham Gowland issued a statement saying key financial questions were left unanswered, meaning taxpayers still have not been told the true 20-year cost of emergency borrowing now being locked in, which he estimatesd will leave a “£57m back hole”.
He said: “People deserve the truth, not half the story. We were given short-term figures at the meeting, but nothing on the long-term damage. That is not transparency. That is hiding the bill until after it is too late.”
He says the figures Warrington residents haven’t been shown has government approval in principle to borrow £87.029m for 2025/26 and £92.047m for 2026/27 through Exceptional Financial Support, a total of £179.076m. EFS is a loan that must be repaid over 20 years with interest from the council’s day-to-day budget.
Based on officer briefings and budget assumptions, Cllr Gowland says the real damage comes in two crushing blows: more than £35 million a year will vanish on loan repayments once the borrowing is fully drawn down, and on top of that, up to £22 million a year in investment income will be lost following the sale of council assets. Put together, that is a potential £57 million stripped from Warrington’s spending power every single year – money that will not be there for social care, potholes, bin collections or housing support.
“If that isn’t damage, what is?” said Cllr. Gowland.
He says problems will gets worse, not better. The council has already submitted an amended EFS request of £354 million over five years to 2029/30 and admits to a £178.9 million budget gap to the end of the decade. Its commercial portfolio has fallen in value by £275 million despite generating £166m since 2009.
Government envoys are now overseeing Warrington’s finances. “We’re telling the next council elected in 2028 that they’ll start day one with massive debts they didn’t create,” said Gowland. “Residents in 2030 will still be paying for decisions taken today. They should at least know the size of the bill.
“I’m not against borrowing if there’s no other choice,” he said. “I am against signing Warrington up to 20 years of payments without telling taxpayers what it costs in pounds and pence.”
Cllr Gowland has now submitted a formal request for the full financial modelling sent to Government, demanding publication of: Total borrowing planned to 2030 and Full repayment costs including interest Year-by-year impact on frontline services. “Borrowing buys time, but it doesn’t make debt disappear,” he added. “If the truth is that Warrington will have £57m less to spend every year for the next two decades, then let’s have the guts to say it. Residents can handle the truth. What they won’t forgive is being kept in the dark.”
In response Councillor Denis Matthews, Cabinet member for Finance, Assets and Investments, commented: “At the Full Council meeting on Monday 20th April Cllr. Gowland asked a question relating to the projected borrowing costs of Exceptional Financial Support. I provided a full answer to this question which any Warrington resident can view on the video recording that is available on the Council’s website.
“The details of Exceptional Financial Support, purpose, and costs were considered within the budget report at Full Council on 2nd March when the Medium Term Financial Plan was agreed.
“The £57m per year figure stated does not, to the best of my knowledge, reflect any statement or report given by myself or Warrington Borough Council.
“If any councillor is unsure of the future projected annual costs they need only ask Council officers for their assistance and, as always, they will be happy to assist”.
However it stacks up, Warrington Borough Council is facing significant financial repayments following its application for Exceptional Financial Support (EFS) to manage an estimated £1.4 billion debt. A significant portion of the council’s annual budget is dedicated to servicing existing debt, with some reports suggesting roughly £800 of every average council tax bill is currently used for these repayments.
