Blackpool Council's £211m debt revealed - but without it key regeneration projects such as Holiday Inn and the Backlot Cinema would not have gone ahead

New research shows Blackpool Council currently has debt totalling nearly £211m – but council chiefs say the borrowing is vital to fund the town’s ambitious regeneration plans.An investigation by the BBC has found Blackpool Council’s debt amounted to £210,886,000 as of September 2023. This equates to £1,496 per resident.

Shared Data Unit analysis of data by the Department for Levelling Up shows UK councils owe a combined £97.8bn to lenders, equivalent to £1,455 per resident.It comes as six councils have now declared themselves effectively bankrupt due to spending pressures – Croydon, Slough, Thurrock, Birmingham, Woking and Nottingham.

Blackpool Council leader Coun Lynn Williams said the town’s debt was not propping up services but was to pay for capital schemes.

She said: “The debt referenced in this report is planned borrowing as agreed in our treasury management strategy.Appropriate low-cost borrowing is used in order to finance the requirements of our capital strategy whilst attempting to ensure interest rate risk is mitigated. It is not used to fund council services.

“The regeneration schemes that are underway across the town wouldn’t be possible without borrowing money in this way. We determine our borrowing limits taking into account our financial situation, long-term plans and in particular what we think is affordable now and sustainable in the future. It is regularly monitored and reported publicly.”

Key regeneration schemes the council has borrowed money for include –

• Holiday Inn Hotel (including tram terminal) on Talbot Road –  £29.1m with costs due to be met from hotel revenue.
• Civil Service offices being built on King Street – the £100m total cost includes £82m from council borrowing which will be recouped in rent throughout the 25-year lease, with the DWP putting the remainder of the money in.
• Phase two of the Houndshill Shopping Centre including the Backlot Cinema and Diner – The council has borrowed £22.5m towards the scheme and expects to receive £630,000 in annual rent from the phase two development.
• Houndshill Centre – bought in November 2019 by the council for £48m using borrowing which is being paid back through rents received.
• Blackpool Tower maintenance and steelwork renewal – Funding for the project of £11m will come from prudential borrowing, with the overall cost forecast to be around £16.7m over the loan period of up to 24 years. Revenue from the attraction will fund the repayments.
• Multiversity on Cookson Street – The council has borrowed £16m towards the overall £65m cost which will be repaid by Blackpool and the Fylde College, which will operate the Multiversity.