In answer to David Huxtable's argument that we should now be paying 1% interest on borrowing - in line with the base rate (Somerset Liberal Democrat Group)

Somerset Liberal Democrat Group <info@somersetlibdems.org.uk>

In answer to David Huxtable's argument that we should now be paying 1% interest on borrowing - in line with the base rate

February 9, 2009 4:02 PM
By Cllr. Sam Crabb in West Somerset Post (blog)

As usual the Conservatives are talking rubbish. Base Rate with the Bank of England may be down to 1% - the lowest rate for 200 years - but no-one can borrow at that rate. The cost of breaking long term fixed rate interest mortgages for Somerset County Council would be over £12 million. The annual saving by borrowing at the lowest possible rate that SCC could get, would be £1.17 m per annum. So the Conservatives would rather spend £12 m plus now to save £1m!

Somerset County Council has been awarded a 4 out of 4 for Value for Money - let's see if David Huxtable can find a Conservative Council that good in the area.

The amount of prudent borrowing per head of population in Somerset by Lib Dem run Somerset County Council is one of the lowest of any County Council in England.