Tories warn global instability is risk to town hall debt of £570m

Blackpool’s Tories are warning global instability could put pressure on town hall debt currently running into hundreds of millions of pounds.

Conservative councillor Paul Wilshaw says the Labour-run council has failed to take into account the economic impact of the Ukraine war and Donald Trump’s trade policies in its 2025/26 budget.

He warns rising defence spending, inflation, and interest rates—driven by war and trade tensions—have been ‘dangerously overlooked’ during calculations which saw the council agree its budget on February 24.

Council tax was increased by almost five per cent, and council leader Coun Lynn Williams told the Budget Meeting the council now had cumulative debt of around £570m.

Speaking following the meeting Coun Wilshaw said: “The war in Ukraine has driven up inflation, increased borrowing costs, and forced governments to prioritise defence spending.

“Yet, Labour’s budget leaves Blackpool highly vulnerable, with £371m in short-term borrowing and no clear plan for how to respond if financial pressures escalate. Short term borrowings for example are much more vulnerable to market volatility, yet the majority of the council’s borrowings are short term loans.”

He added policies by US president Donald Trump “to shake global markets” could lead to costs rising.

Coun Williams, in her Budget speech, maintained the council was continuing to deliver sound financial management with borrowing required to drive forward the town’s ambitious regeneration programme.

She said: “Such transformational investment requires risk and an appetite to borrow to invest where the private sector would not at such an early stage of the masterplan.”

Coun Williams said the council’s cumulative debt was around £570m “but we have plenty to show for it” while the council’s long term assets are valued at more than £1.1bn.

She added: “This Labour council year after year has delivered sound financial management while making sensible investments in the town’s future.”