WARRINGTON Borough Council forecasts it will be in £1.6 billion gross debt by 2020-21 – but the figure does not include the value of assets the authority has bought such as Birchwood Park.

A large amount of historic debt has paid for capital projects in the town but, in recent years, the authority’s borrowing has largely funded ‘invest to save’ schemes.

These projects, while incurring debt costs, have delivered a net benefit, with the council estimating they will bring in around £25 million per year to support vital services by 2020-21.

However, amid fears over the startling level of debt forecast, Lynton Green, director of corporate services and deputy chief executive, is aiming to ensure residents understand the approach.

He said: “The easiest way I can think of is in terms of what people have as their own mortgage.

“You might buy a house for £100,000 and you might have a £90,000 mortgage – and people don’t get scared about having a £90,000 mortgage as they know they are buying something with it, the bricks and mortar is secured against it.

“And if the worst thing happens, they will sell their house and pay off the mortgage.

“But actually, what is more likely to happen, over the time the value of it will go up and in 10 years’ time they will have less than a £90,000 mortgage as they paid some of it off and they will have a house worth £200,000.

“For me, that is the approach Warrington has been taking around some of the property investment.

“We have bought things at the value they are at and are able to borrow cheaply through the Public Works Loan Board.

“Birchwood Park was £211 million and we will have that valued every year as part of our accounts.

“The worst we will ever be off is £211 million to fund it and it brings a net profit of £4.5 million to support services that we would otherwise have to stop.”

The major commercial sites the council has purchased are Birchwood Park, Matalan, DW Sports and Pure Gym in the town centre.

Mr Green joined the authority in March 2010.

He has worked for Kent County Council, Medway Council, London borough of Bromley, Manchester City Council, Sefton Council and Greater Manchester Police.

But the man in charge of the finances and accounts at the Town Hall admits budget cuts and service demands are making his job one of the most difficult to date.

Mr Green added: “When I came to Warrington we were already planning, as part of the medium-term financial plan, significant reductions in council funding.

“We have our last £1.7 million of Government funding for our revenue budget this year but the following year we will have nothing from central Government.

“There are different ways to deal with it, the most painful way would be to see what we could stop doing.

“But I think Warrington’s approach has been how can we protect services that people value and services that protect the most vulnerable.

“We haven’t got enough money from council tax to do that, so we have to generate money from somewhere else if we want to continue delivering services.”