Perth and Kinross Council 'not at risk' despite financial crises at English councils

dailyrecord.co.uk:

Perth and Kinross Council's (PKC) finance chief has assured councillors PKC is not at risk despite investment in English councils - where some are in financial meltdown.Last week Birmingham City Council became the fifth English council since 2021 to issue a Section 114 notice amid "unprecedented financial challenges".A Section 114 notice in England is a last resort for a local authority and restricts all new spending with the exception of protecting vulnerable people and statutory services.Birmingham follows in the footsteps of Croydon, Slough, Thurrock and Woking in issuing a 114 notice.Inter-authority lending is common practice.

This week a Perth and Kinross councillor raised concern Perth and Kinross Council (PKC) could be at risk if it had loans or investments with councils now "bankrupt".At a meeting of PKC's Finance and Resources Committee on Wednesday, September 13 Blairgowrie and Glens councillor Tom McEwan asked PKC's head of Finance if PKC was exposed.The SNP councillor said: "None of us will have failed to recognise there are councils down in England who have gone bankrupt or got a Section 114."I've been on this committee a few years and remember that we borrow money out to other councils and get money back from that.

Is there any risk to that money?"Finance chief Stewart MacKenzie was not surprised by the question.He told councillors: "I did expect some questioning on this issue - given national media coverage."There is a substantial inter-authority lending and borrowing market which totals in the billions."We both borrow from and lend to other local authorities."He later clarified: "We have got £5 million borrowed from a Scottish local authority short-term and we have got £25 million invested in local