MORE than half of the money raised through council tax in the Wee County is being used to service council debts.

A study released by the Scottish Green Party found that 51 per cent of the revenue brought in by Clackmannanshire Council through local taxation is used to help pay off its £108 million debt.

There is a similar picture across Scotland, though the Wee County pays comparatively more of its council tax revenue than the majority of other local authorities.

The Greens are calling on the UK government to write off the debt – an idea branded “ludicrous” by the Conservatives.

Mark Ruskell, Mid Scotland and Fife MSP for the Scottish Greens, said: “Given the incredibly difficult decisions local authorities are having to make just now as they consult on next year’s budgets, it’s unacceptable that councils are using council tax revenue to deal with historic debts that enrich private banks and the UK Treasury.

“We are facing huge cuts to front line services like education and healthcare in Clackmannanshire, along with possible compulsory redundancies at the council, whilst trying to repay unethical loans from our own government.

“The Westminster government should write off council debts to end the unfair squeeze on local services.

“We must also improve oversight so that our local authorities aren’t forced into such high-risk financing in future.

“A Scottish government-controlled Loans Board would offer greater stability and value and I would encourage Scottish ministers to explore the idea.”

Alexander Stewart, Tory MSP for the same area, responded by saying it would be “utterly irresponsible and unfair” to simply write off the debt. He added: “Such a course of action would send completely the wrong message on fiscal responsibility.

“If we were to write off such debt, we might as well just tell councils to waste as much money as they want because there will be no consequences and that, one day, the government will come along and pick up the tab. It really is no surprise to see that Greens and, indeed, Labour – the two most financially naïve parties in the Scottish Parliament – have come up with such a ludicrous idea.”

Clackmannanshire Council said that only eight per cent of its total funding is spent on debt repayment, while the amount of money owed has reduced by more than a tenth over the last few years.

A spokesperson for the local authority said: “Council tax income only makes up 15.26 per cent of overall council funding and, therefore, only 8.12 per cent of total funding is spent on debt repayment, which is line with the Scottish average.

“The council only undertakes borrowing to support its capital investment and does this in line with relevant guidance to ensure that it is prudent, affordable and sustainable.

“The council’s strategy is to reduce long-term debt and has reduced its debt by 11 per cent over the past four years.”