Newcastle-under-Lyme Borough Council has formally asked Stoke-on-Trent City Council what steps it is taking to manage its debt before the three councils merge in 2028.
The merger will abolish Newcastle-under-Lyme Borough Council, Staffordshire Moorlands District Council and Stoke-on-Trent City Council. They will be replaced by a single unitary authority covering North Staffordshire. Staffordshire County Council will also be abolished as part of the restructuring.
Graham Shaw, Deputy Leader of Newcastle-under-Lyme Borough Council and Cabinet member for Finance, has written to Stoke-on-Trent City Council asking what discussions it has had with Government about reducing its debt and repaying loans.
Concerns Over Financial Stability
In his letter, Cllr Shaw said: "It would be helpful to understand what discussions have taken place with Government about how these liabilities would be treated and whether additional funding, debt relief, restructuring or transitional support has been sought."
He stressed that residents needed confidence the new authority would be financially stable and not become a burden on them.
Cllr Shaw suggested that if Stoke-on-Trent has made no progress, Newcastle-under-Lyme, Staffordshire Moorlands and Staffordshire County Council should write jointly to Government to seek support.
What Happens Next
A shadow authority will be created next spring to plan how the three councils will merge services and take on some responsibilities from Staffordshire County Council. Cllr Shaw said that clearing existing council debts would "allow for the best opportunity to start on the right financial footing and to inform the business plan that our officers will need to write in the coming weeks."
