Cash shortfall hits projects in capital

Published on Sunday 22 January 2012 00:00

COUNCIL leaders in Edinburgh have warned that no new capital projects can be funded until 2016 because of a shortfall in funding totalling tens of millions of pounds.

In a gloomy report, officials said there will be no new funds available to fund projects for whichever administration takes power after the local government elections in May.

The cost of capital projects such as building schools between 2012 and 2016 is £42.5 million above the funding that is expected to be available.

City of Edinburgh Council, controlled by a Lib Dem/SNP coalition, already faces a £1.5 billion debt bill and some schemes may have to be scrapped or scaled back.

Councillor Andrew Burns, leader of the Labour group, said: “In terms of capital projects, it will be difficult because not only have we got that £1.5bn of debt, but we’ve also got very steeply declining capital support from central government.”

Current planned projects include the replacement of south southside schools, Boroughmuir High School, for which the council has set aside £7.2m in 2015-16, and James Gillespie’s High, costing £20.2m by 2016.

Despite the constraints, finance leader Councillor Phil Wheeler, said: “The council will always have the scope to borrow from the Public Works Loans Board, and that is far cheaper than borrowing from a bank.”

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Tintock Pete

Sunday, January 22, 2012 at 03:30 PM

Build more "affordable housing" so that housing benefit and CTB will keep councillors in chauffeur driven limos. Well until independence then we'll see if housing benefit is still available.

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5

Colin RB

Sunday, January 22, 2012 at 11:57 AM

just serve a few statutory repair orders

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4

donald marr

Sunday, January 22, 2012 at 11:28 AM

Might not be a bad thing,we might not lose anymore green space for a while.

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3

benaryeah

Sunday, January 22, 2012 at 09:29 AM

FINALLY some chickens have come home to roost! FOR DECADES THE City's Development Departments and their acolytes have run amok with vanity, high cost projects that no-one ACTUALLY WANTED, have contibuted relatively little to the daily life of the city and we are now in £1.5 BILLION of capital debt (and this is NOT counting the TRAM project)!!!! Councillors Burns and Buchanan should hang their heads in shame at the arrogance and profligancy of their egos... shame too on their colleagues who, down through the years have failed TOTALLY to exercise prudence and care for the fiscal stewardship of the capital and to reign in ambition and fantasy. Come MAY let's see some fine INDPENDENT candidates who will FIRST AND FOREMOST - PUT THE GOOD OF THE CITY AND IT'S CITIZENS at the TOP of the list of priorities until such time as the city budget recovers some degree of sanity.

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2

Hector the Lessor

Sunday, January 22, 2012 at 07:41 AM

Why not a carbon tax? Well as they say in Australia, they cannot tax air, but carbon is the next best thing.

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1

The Answer

Sunday, January 22, 2012 at 02:26 AM

why not a £1 bed tax ... would raise billions upon billions.

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