LOANS making up part of Warrington Borough Council's (WBC) £274.8 million worth of debt include £5 million sums from Hampshire County Council and Oxfordshire County Council.

Last month, the borough's audit and corporate governance committee was informed the figure for borrowing, as of December 31, comprised £268.7 million in long-term borrowing and £87.3 million in short-term borrowing, taking the total to £356 million.

But council investments – made up of deposits with financial institutions – totalled £81.3 million to bring the official debt figure down to £274.8 million.

A number of loans making up the authority's debt are from leading banks.

They include a £25 million sum from Barclays – it is due to be repaid in 2077 and comes with a 4.18 per cent interest rate.

There are two further loans from Barclays, they total £10 million and £5 million, while the authority has taken a £15 million loan from Commerzbank, previously Eurohypo, which terminates in 2042 and has a 4.99 per cent interest rate.

But council bosses have also thrashed out deals with other authorities due to lower interest rates.

The council has taken two £5 million loans from Oxfordshire County Council.

The first started in 2015 and terminates this year – it has a 0.85 per cent interest rate.

The second, which also commenced in 2015 but ends in 2018, comes with a 1.2 per cent interest rate.

Furthermore, WBC has taken £5 million from London Borough of Newham, with a 1.85 per cent interest rate, £5 million from Hampshire County Council, with a 2.35 per cent interest rate, and £3 million from Sheffield City Region, with a 0.95 per cent interest rate.

There is also a bond issue of £50 million, which has a variable interest rate linked to consumer price index.

A council report to the audit and corporate governance committee said the authority borrows to fund the approved capital investment programme 'in accordance with its prudential indicators'.

It added: "It also borrows to finance cash flows in the short term.

"The strategy aim for borrowing is to minimise the revenue cost of debt, while securing the council from unexpected revenue pressures caused by changes in interest rates.

"In order to minimise the revenue cost of debt, the majority of the council's borrowing is at interest rates fixed for the duration of the loan."