This is how much debt per resident each local council has

Shared Data Unit analysis of Department for Levelling Up figures shows that Eastleigh Borough Council currently has a debt of £350,487,000. 

Of this debt, £487,000 is tied up in short-term loans in the household sector, whilst a whopping £350 million is in long-term PWLB (Public Works Loan Board) loans.

READ MORE: Eastleigh Borough Council: Third most at risk due to debts

These are given to local authorities on behalf of the Treasury to fund capital projects.

Taking into account its population of 136,974 people, the research shows that Eastleigh has a debt of £2,559 per resident. 

The figure is more than double that of neighbouring Southampton City Council, which is currently looking at cost-saving measures to close a predicted budget deficit of £20.9m.

Southampton has a total debt of £287,897,000, making the total debt per person £1,164. 

Meanwhile, New Forest District Council has a debt per person of £671 with Fareham at £417 and Hampshire at £140 for each resident.

The data also shows that Gosport's council has a current debt of £604 per person whilst Test Valley's is only £49 for each resident. 

As of September 2023, the national average is £1,141 per resident.

Eastleigh council leader, Cllr Keith House, said the authority's "invest to save" policy has protected taxpayers from cuts and meant council tax could stay below inflation over the past 15 years. 

But Tory MP for the area, Paul Holmes, has called on council bosses to resign over what he described as "negligent and inefficient" leadership.

He said: "This just shows what I and local Conservatives have been warning about.

"Keith House and the Lib Dems locally have always been proud to point out low taxes and good services.

"It’s negligent and inefficient and the leadership should now resign, especially with news coming out about ever-increasing debt and a lack of governance structures."

Eastleigh Borough Council leader, Cllr Keith House. (Image: NQ)

But Cllr House maintained that Eastleigh's borrowing is secure and reassured residents that the authority is not at risk. 

He said: "All of Eastleigh’s borrowing is secured against commercial property or long-term income from housing.

"The Council’s approach is delivering infrastructure first on new homes, and achieving sustainable long-term income."

He went on to say: "Unlike many councils, including Hampshire and Southampton, Eastleigh has safe finances that mean we can continue to set budgets into the long-term without the risk of going bankrupt or major cuts in services.”

Research shows UK councils currently owe a combined £97.8bn to lenders, equivalent to £1,141 per resident, as of September 2023.

Taking into account all types of local authorities, such as police and crime commissioners and combined authorities, the debt pile rises to £122bn.

Councillor Steve Broomfield. (Image: Supplied)

Conservative county and borough councillor Steve Broomfield added that Eastleigh's leadership is "gambling on the property market" and called on council bosses to involve residents in looking for savings like Southampton and Hampshire. 

He said: "They’re spending ridiculous amounts of money every month on servicing debt. I really don’t get how this is benefitting residents.

"I would be looking at ways to try and get that debt down. This amount of money is far too much for a council with the population of Eastleigh to support.

"We know Southampton are going through a process to look at cost savings, we know Hampshire are going through the same. Eastleigh is all behind closed doors.

"There is no admission that anything might be better and might be done differently. These debt figures are rather the culmination of that I fear."

A spokesperson for the Local Government Association, which represents councils across England and Wales, said: “Councils have faced a choice of either accepting funding reductions and cutting services or making investments to try and protect them.

"This was an approach that was encouraged by the government. 

"While councils have made investment decisions to help them replace funding shortfalls, the majority of council borrowing is focused on investing in projects that contribute to their local economies or help them provide core functions, such as housing and transport schemes.

"The Government needs to come up with a long-term plan to sufficiently fund local services.”