We are focused on not incurring any more operating debt by achieving ongoing breakeven positions. We are also looking at ways we can repurpose assets to pay off old debt. We are starting to see positive results with a breakeven budget planned for 2020/21.
But reducing debt will take time – it is not something that will happen in one, two or even three budget cycles.
It also doesn’t mean we won’t incur new debt. We still need to pay for things like new roads and community building and instead of saving the money up to build these things, we might borrow the money and the debt can be paid off over the life of the asset. It’s a bit like buying a house; it’s rare that people pay for it up front, but will instead borrow the money and pay off the mortgage over time.
This is just one part of our plan - we want to know what you think. Please view all of the plans, and leave your feedback before 16 June.
Draft ABP 2020/21: Supporting growth, investing in renewal, and securing our financial future.