Why LCC Borrows Money — And Why That’s a Good Thing

When people hear that councils borrow money, it can sound alarming — but in reality, borrowing is one of the most important tools we have to invest in Lincolnshire’s future.

Let’s be clear: councils can’t borrow to pay for services like social care or staff salaries. Those come from council tax, business rates, and government grants. However, we can borrow for and do borrow for capital projects: significant, long-term investments like new schools, safer roads, flood defences, libraries, museums, and fire stations.

Think of it like a mortgage. Few people could buy a house outright with savings, so we borrow sensibly and spread the cost over time. Councils do the same because waiting decades to save the full amount would stall progress and leave communities without the services they need today.

Delivering for Lincolnshire

Borrowing allows us to make real improvements in people’s lives. Just look at some of the investments we’ve made:

• Skegness Roman Bank road improvements include better transport links and safer roads for residents.
• Lincoln Eastern Bypass is moving traffic around the centre of the county more efficiently.
• The Chapel Observatory is driving tourism and education.
• New fire stations and equipment keep our communities safe.
• £100m in school upgrades, giving children across the county the best possible start.
• Lincolnshire Superfast Broadband supporting the rollout of fibre broadband across rural Lincolnshire.
• South Lincolnshire Food Enterprise Zone provides much-needed infrastructure to support the food technology industry.
• Levelling Up Schemes to support traffic movements up and down the A16.
• Children Home Upgrades so our most disadvantaged get the best possible start in life.
• Disabled Facility Grants are to support our most vulnerable residents living at home more easly.
• Flood Protection Schemes across the county to deal with flooding and to keep homes and businesses safe.
• Waste Processing & Recycling equipment to maximise recycling and save money across Lincolnshire homes and businesses.

These aren’t luxuries. They’re the backbone of a strong, growing county. And they don’t happen without bold, forward-looking investment.

When Borrowing Is the Only Option

Some say we shouldn’t borrow at all. But if councils didn’t borrow, major projects would not happen. Government funding for local authorities has been significantly reduced over the past decade. The idea that we could save tens or hundreds of millions before investing is unrealistic, especially regarding political or economic cycles.

Without borrowing:

• Roads go unrepaired.
• School expansion slows to a halt.
• Economic regeneration is shelved.

That’s not good enough for Lincolnshire, and we won’t accept it.

Responsible, Strategic, Transparent

Is borrowing risk-free? No, just like with mortgages or business loans, it comes with responsibility. But when managed well, with careful planning and oversight, it’s one of the most effective ways to build a better future.

We borrow to invest, not to cover up cracks. Every project is assessed for its long-term value and sustainability.

A Reality Check for the Critics

Some critics, including political parties like Reform, argue councils should never borrow. But here’s the question back: How else do you propose funding vital improvements? Should we abandon road upgrades, scrap school expansions, and leave fire and rescue teams with outdated equipment?

We all want modern infrastructure, safe communities, and thriving local economies. Borrowing when used wisely helps make that possible.

Most of us borrow money at some point in life. We take out mortgages because we want a home, and businesses borrow to invest in tools and machinery. If we followed the “no borrowing” mantra, most of us would still live with our parents and work paper rounds.

Lincolnshire deserves better than that, and we’re proud to deliver it responsibly.