Surrey Heath: Council warns of ‘tough choices’ in finance

Ms McIntyre said: “The council has secured long-term loans at fixed rates through the Public Works Loan Board (the government) and other financial institutions.

“The remaining £80 million was financed through short-term floating rate borrowings reflecting the Bank of England base rate over time.

“Increasing interest rates in recent years have resulted in a significant increase in indirect servicing costs associated with interest on our debt.”

Council leader Sean McDonald added: “The reality is that most councils face significant financial pressure. Rising inflation, wage pressures and rising demand for services, as well as more complex needs, have created a projected funding gap for the sector of £6.2 billion over the next two years.