Row erupts over Wolverhampton Council's borrowing levels

Conservative councillor Jonathon Yardley said an audit report of the city's finances showed the Labour-run council's "irresponsible" levels of debt and borrowing.

But councillor Louise Miles said excerpts of the report had been quoted out of context to fit "his party's political narrative".

A report presented to the Audit and Risk Committee last week showed the council will borrow £166.1 million during 2019/2020, with external auditors advising the council to "monitor its borrowing levels".

It comes as debt in the city is expected to soar above £1 billion by 2020/2021.

The report also showed the auditors were "satisfied", however, by the council's budget for 2019/2020.

But councillor Yardley, vice-chair of the Audit and Risk Committee, said: "This audit report lays bare the Labour Party’s irresponsible levels of debt and borrowing at the city council.

"It is clear to me, and has been for some time, that Labour just cannot manage ratepayers’ money effectively and efficiently.

"The £38 million Civic Halls shambles is a classic example of this."

Councillor Miles, Wolverhampton Council's cabinet member for resources, said councillor Yardley had used the report to "fit his party's political narrative".

She said: "Councillor Yardley has quoted the external auditor’s report out of context and used selective extracts from it to conveniently fit his party’s political narrative.

"The auditors conclude that they are 'satisfied that the council has proper arrangements in place for managing and utilising assets effectively to support the delivery of strategic priorities'.

"Furthermore, the auditors stated they were satisfied that the council has put in place proper arrangements for securing economy, efficiency and effectiveness in its use of resources.

"All councils borrow to fund capital projects, our borrowing is within permitted levels and our reserves are sufficient to cope with any unforeseen circumstances.

"We borrow to invest in assets which generate returns for the good of the city such as better housing, schools, roads and regeneration projects."