Concerns raised over council merger and Blackpool’s huge debt

Fylde MP Andrew Snowden has raised fears that taxpayers could be forced to pick up the bill for Blackpool Council’s massive £500 million debt after local authorities merge.

Conservative MP Mr Snowden confronted Local Government Minister Alison McGovern directly in Parliament, demanding to know whether the Government expects Fylde and Wyre residents to shoulder the financial burden.

However, his comments were blasted by Cllr Lynn Williams, the Leader of Blackpool Council, who said many of her council’s financial challenges could be laid at the door of previous Conservative governments who implemented savage funding cutbacks to the council over several years.

Labour ministers are pressing ahead with the controversial plans to abolish Lancashire’s existing councils to form new merged “super councils”.

All five options currently under consideration would see Fylde and Wyre merged with Blackpool Council.

But the two smaller authorities, which are both Conservative-led, say they are debt-free and have been clear that they don’t support a merger with Labour-led Blackpool, which is looking to make £12.5m savings in the 2026/7 financial year and has massive overall debts.

Mr Snowden demanded to know whether Ministers have budgeted for massive council debts like Blackpool’s and whether that debt would be cleared before any merger or simply transferred to the new authority, leaving Fylde and Wyre residents exposed.

Mr Snowden was unhappy after being told by the Minister that decisions would be taken on a “case by case basis”.

Cllr Williams said Blackpool’s borrowing has not been reckless spending but has been strategic investment which will have long-term benefits.

What Mr Snowden says

Speaking after the exchange, Andrew Snowden MP said: “I am 100% opposed to these mergers and this should set alarm bells ringing for every resident in Fylde and Wyre.

“Our councils have been responsibly run. They have no historic debt. Blackpool has racked up £500 million.

“People here are rightly asking one simple question. Why should they pay for someone else’s financial mess? The Minister’s failure to give a clear answer was deeply concerning and suggests the Government simply hasn’t thought this through.”

He said residents deserved clarity before any merger is forced upon them and added: “I will fight every step of the way to ensure Fylde and Wyre taxpayers are not treated like a cash machine to bail out failing councils.”

The Government is expected to make a final decision on Lancashire’s council reorganisation later this year.

Blackpool Leader’s response

Cllr Lynn Williams said: “It is disappointing, though perhaps not surprising, to see Andrew Snowden MP attempting to generate alarm rather than engage in an honest discussion about local government reform. From his comments I’m not sure the MP for Fylde understands how councils work.

“People in Fylde are paying for debt at Lancashire County Council, whose debt is considerably larger than Blackpool’s, and covers services as far away as Lancaster and Burnley.

“Blackpool Council is a unitary authority where Fylde is a district council. Quite simply, upper tier authorities like Blackpool have more debt because we have far more responsibilities

“The financial pressures facing councils across the country did not appear overnight. They are the direct consequence of 14 years of Conservative Government — 14 years in which Mr Snowden’s party failed to reform social care, despite repeatedly promising to do so, and instead imposed devastating austerity on communities like Blackpool.

“Under Conservative austerity policies, Blackpool lost approximately £1.8 billion in funding. That is £1.8 billion taken away from one of the most deprived communities in the country.

“Those cuts increased demand for services, hollowed out local government finances, and left councils across England under immense strain. Its a bit rich for a Conservative politician to now complain about financial pressures when their own Government created them.

“On the issue of debt it’s important to understand that Blackpool’s borrowing has not been reckless spending — it has been strategic investment.

“The debt is invested in real assets: bricks, mortar and concrete. Our assets are worth approximately twice the value of the borrowing. That investment has funded regeneration, created jobs, housing, improved infrastructure, and laid the foundations for long-term economic growth in our town.

“The suggestion that Blackpool is some kind of financial burden ignores the reality that investment benefits the wider Fylde Coast economy. A thriving Blackpool supports jobs, tourism, supply chains and prosperity in Fylde and across Lancashire.

“Rather than attempting to divide communities, we should be working together to secure a stronger future for the whole of Lancashire.”