Devon County Council is now more than half-a-billion in the red after adding £43.5m to its growing pile of debt in the space of a year - new data has revealed.

The council’s debt is up more than 9 per cent from a total of £474,349,000 in the 2023/24 financial year to a whopping £517,849,000 at the end of the last financial year. The equivalent to £621 per resident.

The leader of the Liberal Democrat run council, Julian Brazil, has said he finds the rising level of debt ‘worrying’ particularly as the council is ‘having to borrow for day-to-day services’.

“The increase in debt is a worrying trend for Devon,” said councillor Brazil. “If it was investment in infrastructure or to save, I wouldn’t be so concerned. However, we are reaching the stage where we are having to borrow to pay for day-to-day services. It is a reflection on central government’s failure to fund local government properly.

“Perhaps more worrying is to compare Devon’s debt position with our neighbouring unitary authorities. Plymouth’s is the highest at £2615 per resident. More than four times the size of Devon’s, and this is true for the other authorities. Government’s idea that creating unitary councils will solve the funding crisis is obvious nonsense for all to see.”

The Liberal Democrats took over leadership of Devon County Council after the May 2025 local elections, ending more than 15 years of Conservative control.

Councils across the UK added £7.8bn to their growing debt in the last financial year - the BBC’s Shared Data Unit found.

Analysis of data from the Ministry of Housing, Communities and Local Government (MHCLG) 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.

The recent rise is being partly driven by a near tripling of short-term lending from central government, which in some cases is being used to paper over holes in some council revenue budgets rather than pay for investments and town centre improvements.

A spokesman for Devon County Council has disputed the £517m figure, he said: “The £517 million figure includes an additional £10 million borrowed on March 27 of this year to facilitate the introduction of our new financial system, but this was paid back in full the following week.

“Currently the Special Educational Needs and Disability (SEND) deficit means that our cash balances have reduced to a level where repayment of debt would bring the level of cash balances down to an unsustainable level.”

“Our 2025/26 budget for interest payable on external debt is £26.6 million.”

The MP for South West Devon, Rebecca Smith (Conservative) commented: “While I recognise the financial pressures facing local councils, I hope that the Liberal Democrat administration will bear in mind the ongoing rise in household costs when considering further council tax rises.

“I am happy to work with the council to lobby government for more investment in our county.”