Councils pay £700m in interest

Apr 6 2008 By Mark Aitken Political Editor

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MORE than £700million of taxpayers' money is spent each year paying the interest on councils' debts.

Cash-strapped Scottish local authorities owe an astonishing £9.1billion.

And last year they spent £740million just paying off the interest on the debt - the equivalent of £290 for every taxpayer in Scotland.

Mark Wallace, campaign director of the TaxPayers' Alliance, said: "Councils seem happy to run up debt when it is taxpayers who will have to foot the bill."

Glasgow City Council, led by Steven Purcell, has the biggest debt - £1.3billion and spent £90million on interest.

Edinburgh City Council owe £900million.