THE FOREST of Dean District Council recorded no rise in debt over the last 12 months, amid reports of an increasing debt pile for UK councils.

New data released by the BBC’s Shared Data Unit showed no change in the Forest of Dean District Council’s figures in the last year, with a current debt figure of zero. It also showed the Forest was one of only 32 councils that recorded no borrowing in this period.

The figures for Gloucestershire County Council however, showed a 3.1 per cent decrease in debt over the last 12 months.

Cllr Andy Moore, Deputy Leader of Forest of Dean District Council and Cabinet Member for Finance, said: “As councillors, we all play a vital role in safeguarding the Council’s finances.

“Sensible and well-informed decision making around Capital investment and ensuring realistic and balanced budgets are approved have helped maintain a strong financial position.

“This is done whilst making tough decisions on subjects such as Council Tax levels, fees and charges, and schemes such as Council Tax support. Such decisions ensure we prioritise the needs of local communities and continue to provide high-quality services for our residents."

The news comes as UK councils added £7.8bn to their growing debt pile in the space of a year, as reported by the BBC’s Shared Data Unit.

Analysis of data from the Ministry of Housing, Communities and Local Government shows UK councils owe a combined £122.2bn to lenders, equivalent to £1,791 per resident, as of April 2025. That is up seven per cent from a total of £114.5bn, the equivalent of £1,677 per resident, a year ago.

There may be several reasons for a council’s debt including borrowing, risky property investments or a decrease in funding from the central government.

Jonathan Carr-West, Chief Executive of the Local Government Information Unit said: “There were a series of decisions taken in the years after 2010 that meant the government grant to councils reduced very dramatically and councils were encouraged to use their own resources, their own ingenuity, to be part of the local economy and to raise money themselves.”

This can pose several challenges to councils, which can lead to unpopular decisions such as a rise in council tax or reduction in some local services. For example, as part of its budget plans for 2025/26, The Forest of Dean District Council raised council tax by 12p a week for Band D properties.

Andrew Knott, Director of Finance and Resources at Forest of Dean District Council, said: "The Council faces several local challenges, including Local Government Reorganisation, funding reforms, and maintaining service delivery amid financial constraints. This uncertainty makes planning for the future extremely difficult for Councils such as the Forest of Dean.

"However, through innovative working, we continue to provide high-quality services and invest in communities across the Forest. This work is supported by grant funding for key initiatives, and additional resources to empower community groups to help deliver essential services.”