Debt-free Rother Council

The radical response to continuing low interest rates also means Rother will be one of the few local authorities in the whole of the country not to pay debt charges.

Chief finance officer Dr Pav Ramewal said on Wednesday: "We have been monitoring on a daily basis the constantly-changing interest rates on our debt and the associated redemption costs and discounts, and took advantage of the most appropriate timing whereby the council would gain maximum benefit.

"The strategy for becoming debt-free was put in place some years ago as a key element of the council's medium-term financial strategy, and it is only now that conditions have been favourable for us."

He says the main advantages for Rother in gaining debt-free status are:

p It reduces the council's reliance on investment income and its vulnerability to fluctuations in interest rates while at the same time provides the council with greater flexibility and opportunity to invest in new areas and for longer periods, so gaining higher rates of return

p It allows council funds that are currently frozen under Government regulations to become available for use on future capital schemes

p It enables the council to maximise the use of its capital receipts by being able to recycle some funding on certain elements of the proposed capital programme

Rother chief executive Derek Stevens said: "This is very significant for us and another red-letter day for the council.

"Over the last year we have attracted very substantial amounts of new money into the area in supporting regeneration, arts and leisure.

"Concurrent with this, the importance of now clearing all debts from our balance sheet cannot be underestimated."

The leader of the council, Cllr Graham Gubby, said: "Rother District Council has a strong record in financial management and this latest extremely good news is another important step forward for us in securing the long-term financial stability of the council.

"To be the first council in East Sussex to achieve this status is a further demonstration of the way in which we quietly but efficiently conduct our business."