A LEAFLET outlining new council tax brackets has revealed that more will be spent this year on refinancing a £300 million debt than will be spend on the city’s highways.
The ‘Council Tax and Business Rates 2011-2012’ guide, which is currently being posted to homes across Milton Keynes, says that as of March 31, 2010, the council has a debt of £300 million.
However, in a breakdown of how the council tax will be spent, £20.9 million will go towards loan repayments, an increase of £1 million over last year.
In comparison, the budget for highways repairs has been cut to £18.7 million.
Cec Tallack, leader of the council, said: “We are facing a situation that is far more challenging than anything we have known before.
“The loss of government grant means that Milton Keynes Council is faced with reducing its costs by £27 million.
“The budget does include service reductions that we would have preferred not to make.”