WARRINGTON Borough Council has ‘one of the highest levels’ of borrowing in the local government sector – with the figure topping £1.8 billion at the end of March.

The audit and corporate governance committee will be presented with the draft 2022-23 statement of accounts for consideration at its meeting on Thursday.

The council is required to prepare a statement of accounts for each financial year.

And in line with ‘good practice and in accordance with the final accounts processes and procedures’ adopted in Warrington, the presentation of the draft statement of accounts provides committee members with the opportunity to review the council’s year-end financial position before they are required to formally approve the accounts.

‘Key highlights’ of the council’s draft 2022-23 statement of accounts are that the overall revenue outturn position for 2022-23 was a deficit of £1.205 million, expenditure on the council’s capital programme for 2022-23 was £231.157 million, council borrowings at March 31 2023 stood at £1.822 billion, with £183.516 million of investments and fixed assets stood at £1.412 billion.

Furthermore, the council’s ‘net worth’ increased by £104.001 million – this was ‘largely due’ to a decrease in the council’s pension liability of £220.572 million, which is now shown on the balance sheet as a net pension asset of £73.224 million.

The draft statement of accounts document states the council has attracted many comments related to its commercial programme, and in particular the level of borrowing associated with this activity.

“It is important that the entire programme is understood and does not focus on one or two high profile elements which, as in any diversified investment portfolio, have performed less well,” it adds.

“As at the 31 March 2023 the council has borrowings of £1.822 billion. This is one of the highest levels within the local government sector.

“This is part of a diversified strategic approach of policy led investing in secure assets primarily in housing and property for the economic regeneration of Warrington and the surrounding region.

“Minimum revenue provision is paid on the entire portfolio. During 2022-23 the council’s commercial programme generated a net return to the council of £22.4 million.

“This return is largely from two areas, firstly the council’s secured loans programme which generated a net return of £12.6 million and secondly the council’s property investments which generated a net return of £7.5 million.”