Council hits back at Farage 'bankruptcy' claim

The deputy leader of Lancashire County Council has defended the authority's debt levels after Nigel Farage claimed it was on the brink of "bankruptcy".

Alan Vincent said the borrowed money was being used to fund key projects and assets that benefit residents, and that finances were sound.

The Reform UK leader made the allegation during a campaign visit to West Lancashire on Wednesday, ahead of next month's local elections.  

A spokesman for the Conservative-run council said the claim was "incorrect", adding the council "can fund all the services that it plans to deliver".

Farage had claimed that council finances had become "the most awful mess" under eight years of Conservative leadership.

He told the Local Democracy Reporting Service that residents were paying the price for a county council that was "hugely in debt [and] frankly on the verge of bankruptcy".

Council deputy leader Vincent said the council's debts equates to "less than £1,000 per head of our population – a figure much less than many much smaller authorities than ours across the North and Midlands".

He said: "It builds essential schools, adds SEND [special educational needs and disabilities] units to benefit our most vulnerable children and buys a fleet of buses to take our kids to school.

"It builds and acquires care homes in Lancashire for children unfortunate enough to need them and… it does all of that whilst, at the same time, frequently actually cuts our costs – thus saving money.

"Mr Farage seems to think Lancashire County Council empties bins and is on the brink of bankruptcy – neither of these things are remotely true."

Vincent added: "The public need to think carefully about whether the lack of even a basic knowledge of how local government works makes Reform a party they could put in charge of their hard-earned cash."

In a statement a spokesman for the council said the authority had £250m in reserves alongside £3.5bn in assets.

He said: "Like a domestic mortgage, the council evaluates whether it can afford to borrow to own and use these assets.

"Currently the council pays interest of around £100k a day for this borrowing, which enables us to continue to have these priority resources available to our communities."

The authority said earlier this year it was attempting to "minimise" its new borrowing – expected to total £693m during 2025/26 – until interest rates had stabilised.

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