Rutland County Council has reduced its debt by £2m in the most recent financial year. 

Figures collated by the BBC's shared data unit for all councils across the UK show that Liberal Democrat run Rutland authority reduced its debt bill by almost 12 per cent in the latest 24/25 financial year which ended in April. 

This authority's debt was reduced from £21.4m to £18.8m. It is one of a small number of local authorities that have reduced their debt this year, with a significant number taking on more debt to cover services and new infrastructure. 

The Rutland authority is expected to merge with other neighbouring councils in the coming years as part of local government reorganisation. 

The council's portfolio holder for governance and resources, Cllr Andrew Johnson (Lib Dem), said: "The council's current financial strategy is published annually with our budget as the medium-term financial strategy. The strategy includes borrowing only when necessary for capital investment and relies on diligent financial management to avoid taking on more debt than required.  

"By working to lower borrowing levels, the council can free up resources, reduce financial risk, and build greater resilience against economic pressures. Our recent reduction in borrowing was a reflection of our prudent financial management and enabled by positive cash flow due to a combination of circumstances. We took the opportunity to reduce our exposure to higher interest costs by paying down some of this debt.  

"This action has, in turn, significantly reduced our interest costs on the revenue side of this and future years' performance, saving the council, and thus council taxpayers a considerable amount of money that would have otherwise been used to pay the interest.  

"We will continue to put in place strategies that are based around careful financial planning, prudent spending, reducing costs where we are able, and a commitment to long-term sustainability in order to help Rutland's finances remain healthy, while delivering on our priorities for Rutland's residents and businesses." 

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The latest update given to the council last month said it is on track with its current budget. The authority plans to spend £58.1m. A long running problem, however, is the high needs spending in its schools budget and the authority estimates it could go £3.8m over the 10.9m allocated this year, taking the total overspend to £9.8m. Councils have been allowed to  overspend on this part of the school's budget but will be expected to pay it back in 2027.