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Sheffield’S Plan To Cut £30M From Games Debt

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http://www.thestar.co.uk/news/local/sheffield-s-plan-to-cut-30m-from-games-debt-1-5766697

Sheffield Council is set to approve plans to ‘restructure’ huge debts dating back to the World Student Games in a bid to save £33.5 million.

Under current arrangements – in which the council would pay between £25 million and £30m a year over the next decade – a total of £301.5m would be repaid on the £140m debt run up to build venues such as Sheffield Arena and Don Valley Stadium to host the games 22 years ago, in 1991.

Repayments of £25m in the current financial year equate to half the £50m savings being made due to Government budget cuts.

It would take until 2024 to complete repayments.

The council now hopes to borrow money from another source and repay £99m to creditor Lloyds Bank.

The council plans to enter into alternative arrangements borrowing money from the Public Works Loan Board, an arm of the Treasury which would provide money with a lower rate of interest.

No figures about what interest the council is paying on this loan, good to see Lloyds involved in this.

Can the council really borrow money for buildings already built (potentially being demolished)?

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http://www.thestar.co.uk/news/local/sheffield-s-plan-to-cut-30m-from-games-debt-1-5766697

No figures about what interest the council is paying on this loan, good to see Lloyds involved in this.

Can the council really borrow money for buildings already built (potentially being demolished)?

From what I gather. The original debt was paid up. So its a bit of a fib by the ConDem supporting Star to call it the Student Games Debt.

The debt as it is was funded by buildings as you rightly say. Just like MEWing. This was done under all previous administrations in Sheffield, including a massive one by the Lib Dems to pay for "leaf sweeping" in the posh areas its alleged.

At least this new one is trying to get the payments down! (Wonder if they can claim back PPI?)

The demolition of Don Valley does not influence the other buildings that have been used as assets to support the loan. A quick look at SIV and the council budgets shows the types of things that have been used not just Don Valley. Sheffield Arena to name but one.

Dont believe everything that you read in the "Chip Paper" that is the Star.

bonner

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No figures about what interest the council is paying on this loan, good to see Lloyds involved in this.

Can the council really borrow money for buildings already built (potentially being demolished)?

I expect the point of it is to borrow new money at 2% and pay back old money that had come down but was still costing 7%. Like remortgaging.

Ballpark figures, of course.

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  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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