Wolverhampton Council’s debt increased by £100 million in the last 12 months

The level of debt at Wolverhampton Council has spiralled to £879,153,000 – a rise of £103m on the same time last year.

The authority’s total debt stood at £776,153,000 in March 2024 and increased by more than 13 per cent in 12 months according to new figures provided by the BBC Shared Data Unit.

The huge debt means Wolverhampton is 28th among all UK councils for total debt with Birmingham City Council leading the way at £3.35bn – despite cutting £147m in the last 12 months.

However, the total debt per person in Wolverhampton is £3,227 – higher than its bankrupt neighbours in Birmingham and the other Black Country authorities including Dudley, Walsall and Sandwell.

Wolverhampton was also among the local authorities to see the largest increases in debt across the year – with the council’s £103m increase making it the 30th biggest in the UK.

Wolverhampton Council said the majority of its ‘prudential borrowing’ in 2024/5 was used to build new council houses and repair old ones.

The council added that its external auditors Grant Thornton had not found any issues with its level of borrowing, its uses, or its ability to repay.

A spokesperson for Wolverhampton Council said: “The council undertakes prudential borrowing to support both the General Fund and Housing Revenue Account (HRA) capital programmes.

“Any borrowing undertaken must comply with the CIPFA’s Prudential Code for Capital Finance, meaning that borrowing has to be within prudential and sustainable levels and can only be used to invest in local priorities and services that deliver benefits for the city and residents.

“The council operates within its overall approved prudential limits.

“It is important to note that, unlike many other councils, Wolverhampton still owns and maintains its own portfolio of council housing stock.

“Prudential borrowing also supports investments in the regeneration of the city, which provide both a financial and, equally importantly, an economic return, for example the Interchange commercial district, the Lockworks Cinema and the i54 business park, as well as investing in vital services for our residents such as schools, roads, parks and open spaces, and leisure facilities.”