Greenwich Council’s debt has more than doubled over the past two years and now stands at nearly £908 million – meaning it now owes over £3,000 for every resident in the borough.
The council says that it is “financially stable” and that its borrowings are “carefully planned and affordable”.
Last year it was revealed that Greenwich’s debt had grown by more than £900 per resident.
Now that debt has grown by another £595 per head to a total of £907,932,000 – or £3,087 per person, according to an update going before the council’s cabinet on Wednesday.
Most of the cash – £805.5 million – is owed to the government’s Public Works Loans Board, which lends cash to councils and other bodies for major projects at relatively low rates.
While the level of Greenwich’s debt is not exceptional compared with similar councils, the speed at which it has borrowed cash has put it in the spotlight, while a programme of savings have led to services being cut back, a “fire sale” of properties and the poorest residents losing their exemption from council tax.
Last year, BBC research shared with The Greenwich Wire found that the Labour council had the second biggest per-head debt increase in the country – a sum only exceeded by Conservative-run Kensington & Chelsea.
Then, most of the increase in debt was attributed to building and buying new council housing, and that appears to be the case this year.
With a 28,000-strong waiting list, the council has committed itself to spending £352 million on new homes, along with a £430 million programme of capital repairs to improve its existing stock of homes. Funds for housing are ringfenced from other town hall activities.
The paper notes that £95 million was spent on building new homes in the financial year 2025-26, along with £22 million on buying into new developments.
Another £71 million was spent on improving existing council homes, while £21 million went on buying homes to be used as temporary accommodation.
Completing the Woolwich Waves leisure centre cost £18 million, while £24 million was spent on improving schools and building new facilities. Another £4 million was spent on decarbonising council buildings.
Servicing the council’s debt costs a notional £19 from every Band D council tax bill, the papers say. On average, the council is paying 4.23 per cent interest on its borrowings.
A council spokesperson told The Greenwich Wire: “Residents can be confident that their council is financially stable. Despite having to make £150 million in savings over the last 14 years, we have consistently set a legally balanced budget without emergency support from the government. The treasury update reflects our prudential external borrowing to invest in schools, building and buying much-needed council housing, refurbishing existing council homes, and other buildings and infrastructure that benefits the community.
“Focusing just on borrowing without recognising the value of the schools and new homes we’ve invested in doesn’t show the whole picture. As a social landlord our council homes are worth a combined £6.5billion alone. They provide affordable homes for our residents that need them and reduce our reliance on costly temporary accommodation – tackling the housing crisis and reducing costs for our taxpayers.
“Any future borrowing will continue to depend on our approved capital investment in buildings, roads, schools and other long-lasting assets. It will be carefully planned, affordable and within our means. This is what a well-run authority does.”
The treasury update will be discussed by the council’s cabinet on Wednesday afternoon.
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