Stoke Council Receives £16.8 Million Government Bailout Loan

Stoke-on-Trent is getting a loan in 2025/26. Thirty councils in England will get one to help them pay for services. Usually, they can’t use loans for this, but they must repay the loan with interest, and will likely sell land or buildings.

The council needs £11 million for children’s care costs. They will spend £3 million to improve services, and £2.8 million to pay loan interest. This applies to the previous £42.2 million loan.

Council members proposed budget plans this week, which may increase tax by 4.99 percent. They plan to save £7.5 million, and the full council votes on March 4.

The council warned of big cuts if they got no loan, stating they would cut almost all optional services. Leaders said their plan is working and it aims to reduce children’s social care needs.

Alastair Watson spoke about these financial struggles, saying they weren’t the council’s fault. He noted a decade of government cuts left the council short, stating they have £97 million less than in 2010/11.

He said they have cut the need for loans, and addressed long-term issues facing the city. These improvements will save the city money, mentioning helping families to keep kids out of care.

Watson thinks this will allow them to keep improving, and deliver good services that should cost less. This will lead to better outcomes for everyone in Stoke.

Stoke-on-Trent’s loan isn’t the biggest. Bradford may get £127.1 million, while Birmingham could get £180 million, as they both face a financial crisis.

The government made loans cheaper by stopping charging extra interest. They stated that councils should not sell community assets, including heritage sites, to repay loans.

Jim McMahon said he knew councils faced issues and wants to help them get back on track. He wants to rebuild local governments and said they will partner with councils. McMahon stated they will work to improve public services and create stability, rather than punish councils.