Council has highest debt per-head in Wales

A local authority is carrying the highest amount of debt per head of population in Wales for the second year in a row.

Wrexham County Council has denied it is at risk of a Section 114 order – a measure that effectively declares a council bankrupt.

It stated the debt is largely connected to the authority’s significant social housing stock.

Debt

According to figures compiled by the BBC’s Shared Data Unit, at the end of the last financial year the authority’s total debt figure was £520,879,000.

That equates to £3,825.80 per person in the county borough.

That figure is more than double UK local authority average debt level of £1,791 per head.

While it carries the highest total debt per head, Wrexham’s overall debt level is the third highest in Wales behind Cardiff and Swansea.

Flintshire County Council is also above the UK average for debt-per-head at £2,321.98 – placing it seventh overall in Wales.

It finished 2024/25 with an overall debt figure of £361,792,000 – the sixth highest total in the country.

Housing stock

Looking at how debt has increased year-on-year Wrexham saw the third highest increase in Wales, with debt levels going up by £31,231,000 between 23/24 and 24/25. Debt-per-head increased by £229.39 per-person on the previous year.

“The level of debt referenced is mostly due to Wrexham Council retaining its council housing stock,” said a council spokesperson. “We have the second largest social housing stock across Wales. Of the total council debt at March 31, 2025 around 78% relates to the Housing Revenue Account (HRA).

“In line with the Chartered Institute of Public Finance and Accountancy Prudential Code and Code of Practice on Treasury Management, all activity is within the Council’s borrowing limit and Treasury Management Prudential Indicators.

“Any borrowing made is in compliance with the approved indicators within the Treasury Management Strategy. The main objective when borrowing is to strike an appropriately low risk balance between securing low interest costs and achieving cost certainty over the period for which funds are required.

“Given the significant cuts to public expenditure and in particular to local government funding, the council’s borrowing strategy continues to address the key issue of affordability without compromising the longer-term stability of the debt portfolio.”

Borrowing

Flintshire had the 10th highest real-terms increase in debt-per-head in Wales between 23/24 and 24/25. In that time debt-per-head increased by £189.14 per resident.

The county also had the fifth highest increase in overall debt in Wales, with its debt level rising by £29,470,000 between 23/24 and 24/25.

A Flintshire County Council spokesperson said: “Like many councils across Wales, Flintshire County Council has borrowed to invest in essential services and local infrastructure.

“Recent figures show our debt per-head is £2,321.98. This figure reflects our commitment to long-term investment in affordable housing, schools and community facilities for the benefit of Flintshire residents.

“Importantly, approximately 38% of this debt is ringfenced within the Housing Revenue Account (HRA), meaning it is used to fund new social housing through borrowing.

“Our borrowing decisions are guided by a robust Treasury Management Strategy, which was signed off by full Council and is regularly reviewed to ensure financial sustainability and value for money. The Council aims to strike a careful balance between securing low interest rates and maintaining cost certainty over the life of its investments.

Care home

“The Council’s capital investment programme, also approved annually, includes key projects funded through borrowing. In 2024/25, this included the Sustainable Communities for Learning schools programme and the redevelopment of Croes Atti residential care home.

“Flintshire remains committed to transparency and responsible financial planning. We continue to manage our finances responsibly and review our borrowing regularly to ensure it delivers value for money and supports the needs of our residents now and in the future.”

The figures were gathered from debt data published in the Department for Levelling Up, Housing and Communities’ borrowing and investment tables.

They track 21 sources of short and long-term borrowing by local authorities.

Last year overall UK council borrowing rose from £114.5 billion to £122.2 billion. Across Wales’ 22 local authorities borrowing rose from £6,051,139,000 to £6,437,473,000, an increase of £386,334,000.