Welsh council’s external borrowing reaches more than £1.1bn

Kieran Molloy, Local Democracy Reporter

Wales’ largest council has more than £1.1 billion in external borrowing, with interest payments forecast to reach £50 million this financial year.

Written questions put to Cardiff Council by Cllr Neil McEvoy at a recent full council meeting revealed the extent of the capital’s debt.

According to the council’s response, as of 7 September this year its external borrowing stands at £1.178bn. The questions also showed that for the last financial year, the council made a debt payment of £60.1m and that the forecast for this year’s debt repayment provision is £60.4m.

According to the same document, the estimate for the external interest paid on loans taken by the council for 2026/27 is £50m.

For 2027/28, an estimate has been made of £59m but, according to the council, this estimate is “extremely difficult to forecast”.

Earlier this year, the Local Democracy Reporting Service (LDRS) spoke with the leader of Cardiff Council, Cllr Chris Weaver, about the city’s level of debt.

He said: “I think when you talk about the borrowing that the council does, it’s really important to understand how a council borrows.

“We do not borrow to deliver our day-to-day services, unlike the UK Government, which runs up a national debt because it’s running a deficit. We don’t run deficits – we have a balanced budget every year.

“The borrowing we do is to invest in our capital programme.”

The council leader, who previously served as the cabinet member for finance at the local authority, added: “If you don’t invest in a city you can end up costing yourself more.”

Examples he gave of investment in the city were the council’s house building programme and regeneration projects.

Of all the Welsh councils, Cardiff Council has the most debt. However, in terms of population it is Wales’ largest local authority.

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