£60 on every Somerset council tax bill 'pays for Lib Dem borrowing'

HIGH-spending Somerset County Council was today criticised for locking itself into uncompetitive borrowing rates for years to come - just as the Bank of England cut rates to their lowest ever level.
The Liberal Democrat-run county has long-term high interest rates on more than £300 million which it has borrowed to fund its spending spree in recent years.
The average rate was about 4.3 per cent - which previously looked good, but not with a base rate now down to just one per cent.
Conservative group finance spokesman Councillor David Huxtable (pictured) said the council could now borrow at rates of less than one per cent.
Councillor Huxtable said: “We have been warning the Lib Dem administration about their huge borrowing and now it has come back to bite them.
“The difference in rates could mean the council paying up to £11 million over the odds this year alone.
“This would put an extra £60 on the council tax for every hard working family in Somerset.”
Somerset Conservative group leader Councillor Ken Maddock said: “The Lib Dems have slipped up big time here.
“They have trebled borrowing in the last six years. Who do they think they are - Gordon Brown?
“We need to act like a responsible council - not like a dodgy hedge fund.
“The Conservatives would reduce Somerset’s dependence on debt and borrow less.
“This is as important to a county council as it is to everybody’s personal finances.”

Council partnership offers low cost home improvement loans for low earners

LOW interest loans for essential home improvements are being offered to West Somerset residents of all ages who have a low income.
The initiative is the result of a partnership between West Somerset Council and the Wessex Reinvestment Trust, which helps communities to become more sustainable.
Under the scheme, homeowners can borrow from £1,000 to £15,000, depending on the cost of the work, at an interest rate that is fixed at three per cent for the entire lifetime of the loan.
Projects which could be considered for loans include repairs to leaky roofs, replacing boilers and radiators, installing central heating, replacing rotten windows or doors, and updating bathrooms or kitchens more than 20-years-old.
The council’s housing portfolio holder, Councillor Kate Kravis, said: “Interest rates are currently low so it may seem like a good time to borrow from high street lenders to carry out vital home improvements.
“However, these rates are likely to rise again when the economy recovers.
“The beauty of these low cost loans is that they will never rise.
“We also have trustworthy, experienced advisers who will help people choose a scheme that is right for their circumstances.
“The loans can help homeowners of all ages on low incomes to meet the decent homes standard.
“The work is carried out by trusted local tradesmen, and it is inspected by the council to ensure it is completed to a good standard.”
More information about the scheme is available by calling 0845 241 7243 or visiting the Wessex Reinvestment Trust website at www.wessexrt.co.uk.